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Thread: Trump poised to take control of the Federal Reserve

  1. #1

    Trump poised to take control of the Federal Reserve

    https://www.cnbc.com/2018/07/20/trum...l-reserve.html

    20 July 2018

    President Donald Trump has multiple reasons as to why he should take control of the Federal Reserve. He will do so both because he can and because his broader policies argue that he should do so. The president is anti-overregulating American industry. The Fed is a leader in pushing stringent regulation on the nation. By raising interest rates and stopping the growth in the money supply it stands in the way of further growth in the American economy.

    First, He Can

    The Board of Governors of the Federal Reserve is required to have seven members. It has three. Two of the current governors were put into their position by President Trump. Two more have been nominated by the president and are awaiting confirmation by the Senate. After these two are put on the Fed’s board, the president will then nominate two more to follow them. In essence, it is possible that six of the seven Board members will be put in place by Trump.

    The Federal Open Market Committee has 12 members and sets the nation’s monetary policy. Seven of the 12 are the members of the Board of Governors. Five additional are Federal Reserve district bank presidents. Other than the head of the Fed bank in New York, who was nominated by the president, the other four can only take their positions as district bank presidents if the board in Washington agrees to their hiring. One of these, the Fed Bank president in Minneapolis, Neel Kashkari, is already arguing for no further rate increases.

    Second, Regulation

    Following the passage of the Dodd Frank Act in July 2010, the Fed was given enormous power to regulate the banking industry. It moved quickly to implement a number of new rules. The Fed set up a system that would penalize banks that failed to obey its new rules. These rules included setting limits as to how big an individual bank could be; how much money the banks had to invest in fed funds and Treasurys as a percent of their assets; which loans were desirable and which were not; where the banks had to obtain their funding and many, many, more up to and including how much a bank could pay its investors in dividends.

    These rules have meaningfully slowed bank investments in the economy (the Volcker Rule) and they have had a crippling effect on bank lending in the housing markets (other agencies have had an impact here also).

    Thus, of all of the government agencies the Fed has been possibly the most restrictive. The president has already moved to correct these excesses by putting in place a new Fed Governor (Randal Quarles) to regulate the banking industry.

    Three, Killing Economic Growth

    In the second quarter of 2018, the growth in non-seasonally adjusted money supply (M2) has been zero. That’s right, the money supply did not grow at all. This is because the Fed is shrinking its balance sheet ultimately by $50 billion per month. In addition, the Fed has raised interest rates seven times since Q4 2015. Supposedly there are five more rate increases coming.

    This is the tightest monetary policy since Paul Volcker headed the institution in the mid-1980s. It will be recalled his policies led to back-to-back recessions. Current Fed monetary policy is directly in conflict with the president’s economic goals.

    Moreover, the Treasury is estimating it will pay $415 billion in interest on the federal debt in this fiscal year. A better estimate might be $450 billion if rates keep going up. There are a lot of bridges and tunnels and jobs that could be created with this money.

    Then there is inflation. It is likely to rise if the Fed eases its policies. If that happens paying down the federal debt becomes easier. On a less desirable note, higher interest rates lower real estate values. Lower rates that stimulate inflation increase real estate values.

    Bottom Line

    The president can and will take control of the Fed. It may be recalled when the law was written creating the Federal Reserve the secretary of the Treasury was designated as the head of the Federal Reserve. We are going to return to that era. Like it or not the Fed is about to be politicized.
    Last edited by timosman; 07-22-2018 at 08:58 AM.



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  3. #2
    Couldnt have happened to a nicer corrupt system!

    I hope like hell this pans out as the Fed is killing what is left of America. However, the last president that went against the Fed was JFK...
    1776 > 1984

    The FAILURE of the United States Government to operate and maintain an
    Honest Money System , which frees the ordinary man from the clutches of the money manipulators, is the single largest contributing factor to the World's current Economic Crisis.

    The Elimination of Privacy is the Architecture of Genocide

    Belief, Money, and Violence are the three ways all people are controlled

    Quote Originally Posted by Zippyjuan View Post
    Our central bank is not privately owned.

  4. #3

    Thumbs down Jimmy & Donald's easy money - Runaway Inflation

    President Trump is following in the footsteps of his financial guru Jimmy Carter who pushed runaway inflation to double-digit levels, averaging 11.3% in 1979 and 13.5% in 1980. Easy money only makes things worse. End the FED!


    Toxic waste, one term presidents.
    Last edited by RonZeplin; 07-22-2018 at 08:46 AM.
    Quote Originally Posted by Swordsmyth View Post
    You only show up to attack Trump when he is wrong
    Make America the Land of the Free & the Home of the Brave again

  5. #4
    That's one of the dumbest things I've read lately. As bad as the Fed is, letting the government control the money supply is way worse. I'd argue that the main reason the Fed has been too easy has been influence from the executive branch. The writer is arguing that what we need is MORE printing and borrowing??? That's not what causes economic growth. It's savings and investment. What we need is much less government spending and higher (market set) rates so that people will save and businesses can invest.

    If the government had control of the printing press they'd hyperinflate the dollar out of existence within a short period of time.

  6. #5
    Quote Originally Posted by Madison320 View Post
    That's one of the dumbest things I've read lately. As bad as the Fed is, letting the government control the money supply is way worse. I'd argue that the main reason the Fed has been too easy has been influence from the executive branch. The writer is arguing that what we need is MORE printing and borrowing??? That's not what causes economic growth. It's savings and investment. What we need is much less government spending and higher (market set) rates so that people will save and businesses can invest.

    If the government had control of the printing press they'd hyperinflate the dollar out of existence within a short period of time.
    Gee, you don't think that's the goal, do ya?

    Naaaa couldn't be.
    "Let it not be said that we did nothing."-Ron Paul

    "We have set them on the hobby-horse of an idea about the absorption of individuality by the symbolic unit of COLLECTIVISM. They have never yet and they never will have the sense to reflect that this hobby-horse is a manifest violation of the most important law of nature, which has established from the very creation of the world one unit unlike another and precisely for the purpose of instituting individuality."- A Quote From Some Old Book

  7. #6
    Quote Originally Posted by DamianTV View Post
    I hope like hell this pans out as the Fed is killing what is left of America.

    You hope this pans out? He explicitly wants the Fed to give out more money.
    Quote Originally Posted by Swordsmyth View Post
    Pinochet is the model
    Quote Originally Posted by Swordsmyth View Post
    Liberty preserving authoritarianism.
    Quote Originally Posted by Swordsmyth View Post
    Enforced internal open borders was one of the worst elements of the Constitution.

  8. #7
    Quote Originally Posted by TheCount View Post
    You hope this pans out? He explicitly wants the Fed to give out more money.
    He wants them not to raise interest rates. How was your trip to Dagobah system?

  9. #8
    President Donald Trump has multiple reasons as to why he should take control of the Federal Reserve. He will do so both because he can and because his broader policies argue that he should do so.
    Trump can nominate people to the Federal Reserve to replace openings (with the usual "advise and consent of the Senate"). He cannot fire them or tell them what to do. His choices so far have been "middle of the road" as far as their known positions on interest rates goes. His replacement for Yellen as Chairman said he would continue her policies of raising rates to target inflation.

    the secretary of the Treasury was designated as the head of the Federal Reserve.
    The Fed is not run by the Secretary of the Treasury but by the Chairman of the Federal Reserve Board.



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  11. #9
    Quote Originally Posted by Zippyjuan View Post
    The Fed is not run by the Secretary of the Treasury but by the Chairman of the Federal Reserve Board.
    That's how the law was written in 1913 according to OP. When did it change?

  12. #10
    Quote Originally Posted by TheCount View Post
    You hope this pans out? He explicitly wants the Fed to give out more money.
    He wants the "mother of all bubbles". On the other hand, his tariffs are working to counter that.
    Last edited by Zippyjuan; 07-22-2018 at 01:16 PM.

  13. #11
    Quote Originally Posted by timosman View Post
    That's how the law was written in 1913 according to OP. When did it change?
    1936 (it was changed in 1935 and took effect in 1936). That made the Fed more independent of the government.
    https://www.federalreserve.gov/about...membership.htm

    Leadership Structure: 1936-Present

    The Banking Act of 1935 made several changes in the nomenclature and the structure of the Board. The Banking Act of 1935 renamed the "Federal Reserve Board" as the "Board of Governors of the Federal Reserve System," the "governor" of the Board as the "chairman" and the "vice governor" as the "vice chairman" of the Board, and renamed "members" of the Board as "governors." The Banking Act of 1935 also made the following more structural changes:

    increased the number of members of the Board appointed by the President from six to seven

    required the President to designate one of the persons appointed as "chairman" of the Board and one as "vice chairman" of the Board, each to serve in such role for a term of four years

    specified that the appointive members in office on the date of the act should continue to serve until February 1, 1936, or until their
    were appointed and had qualified; thereafter, the members' terms should be 14 years

    specified that the ex officio members in office on the date of the act (the Secretary of the Treasury and the Comptroller of the Currency) were to continue to serve as ex officio members only until February 1, 1936, but made no further provision for ex officio members
    provided that the "chairman of the Board, subject to its supervision, shall be its active executive officer"

    The Federal Reserve Reform Act of 1977 required the President to designate one of the persons appointed as "Chairman of the Board," by and with the advice and consent of the Senate, and one as "Vice Chairman of the Board," by and with the consent of the Senate. The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 required the President to designate, by and with the advice and consent of the Senate, a new "Vice Chairman for Supervision," who "shall develop policy recommendations for the Board regarding supervision and regulation of depository institution holding companies and other financial firms supervised by the Board and shall oversee the supervision and regulation of such firms." A 2015 statute required that the President, in selecting members of the Board, "shall appoint at least one member with demonstrated primary experience working in or supervising community banks having less than $10 billion in total assets."
    Last edited by Zippyjuan; 07-22-2018 at 01:19 PM.

  14. #12
    https://www.federalreservehistory.or...ng_act_of_1935


    President Franklin D. Roosevelt Signs the Banking Act of 1935

  15. #13
    Quote Originally Posted by TheCount View Post
    You hope this pans out? He explicitly wants the Fed to give out more money.
    I will agree that its the money printing that has gotten us into our problems to begin with, but what I am hoping is if there is a measure of control against the Fed, perhaps we have a better chance of shutting it down permanently. I doubt Trump himself will do that, but may very well open a door for us to finally slay this monster. Just looking for a silver lining, hopefully it isnt just painted lead.
    1776 > 1984

    The FAILURE of the United States Government to operate and maintain an
    Honest Money System , which frees the ordinary man from the clutches of the money manipulators, is the single largest contributing factor to the World's current Economic Crisis.

    The Elimination of Privacy is the Architecture of Genocide

    Belief, Money, and Violence are the three ways all people are controlled

    Quote Originally Posted by Zippyjuan View Post
    Our central bank is not privately owned.

  16. #14
    Trump is setting things up so President Rand Paul can end the Fed in 2025.
    Knowledge is Liberty!


  17. #15
    Quote Originally Posted by Galileo Galilei View Post
    Trump is setting things up so President Rand Paul can end the Fed in 2025.
    Of course that would require an act of Congress to end it. Think you can ever get two thirds of them to agree to do so?

  18. #16
    Quote Originally Posted by Zippyjuan View Post
    Of course that would require an act of Congress to end it. Think you can ever get two thirds of them to agree to do so?
    No it wouldn't. The Fed can be dissolved by several different routes. Hell, the Fed can dissolve itself. Do you even Federal Reserve Act, bro? Something about shareholders voting to dissolve the corporation, just like any other corporation.

    You agree that the Fed is a corporation made up of shareholders, yes?
    "Let it not be said that we did nothing."-Ron Paul

    "We have set them on the hobby-horse of an idea about the absorption of individuality by the symbolic unit of COLLECTIVISM. They have never yet and they never will have the sense to reflect that this hobby-horse is a manifest violation of the most important law of nature, which has established from the very creation of the world one unit unlike another and precisely for the purpose of instituting individuality."- A Quote From Some Old Book



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  20. #17
    Quote Originally Posted by devil21 View Post
    No it wouldn't. The Fed can be dissolved by several different routes. Hell, the Fed can dissolve itself. Do you even Federal Reserve Act, bro?
    Link?

    Something about shareholders voting to dissolve the corporation, just like any other corporation.

    You agree that the Fed is a corporation made up of shareholders, yes?
    Not in a corporate shareholder sense. The "shares" in the Federal Reserve are really membership fees. The shares cannot be bought or sold and carry no voting powers- they have no say in what the Fed does. When a bank wants to join the Federal Reserve System they are required to put up 10% of their total assets to join. In exchange, they are given "shares" and are paid a six percent dividend on those shares.

    https://www.federalreserve.gov/faqs/about_14986.htm

    Who owns the Federal Reserve?

    The Federal Reserve System is not "owned" by anyone. Although parts of the Federal Reserve System share some characteristics with private-sector entities, the Federal Reserve was established to serve the public interest.

    The Federal Reserve derives its authority from the Congress, which created the System in 1913 with the enactment of the Federal Reserve Act. This central banking "system" has three important features: (1) a central governing board--the Federal Reserve Board of Governors; (2) a decentralized operating structure of 12 Federal Reserve Banks; and (3) a blend of public and private characteristics.

    The Board of Governors in Washington, D.C., is an agency of the federal government. The Board--appointed by the President and confirmed by the Senate--provides general guidance for the Federal Reserve System and oversees the 12 Reserve Banks. The Board reports to and is directly accountable to the Congress but, unlike many other public agencies, it is not funded by congressional appropriations. In addition, though the Congress sets the goals for monetary policy, decisions of the Board--and the Fed's monetary policy-setting body, the Federal Open Market Committe--about how to reach those goals do not require approval by the President or anyone else in the executive or legislative branches of government.

    Some observers mistakenly consider the Federal Reserve to be a private entity because the Reserve Banks are organized similarly to private corporations. For instance, each of the 12 Reserve Banks operates within its own particular geographic area, or District, of the United States, and each is separately incorporated and has its own board of directors. Commercial banks that are members of the Federal Reserve System hold stock in their District's Reserve Bank. However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. In fact, the Reserve Banks are required by law to transfer net earnings to the U.S. Treasury, after providing for all necessary expenses of the Reserve Banks, legally required dividend payments, and maintaining a limited balance in a surplus fund.

    https://www.stlouisfed.org/in-plain-...-reserve-banks

    Member banks hold stock in the Federal Reserve Banks and earn dividends. Holding this stock does not carry with it the control and financial interest given to holders of common stock in for-profit organizations. The stock may not be sold or pledged as collateral for loans.

  21. #18
    It's amazing how many times "we" have had this argument Zip. There's multiple ways to dissolve the Fed, detailed throughout the FRA. The Federal Reserve System is made up of member bank shareholders. If every bank closes up shop, the Fed itself is then effectively dissolved. That would be a vote of the shareholders! If the Fed Board engages in criminal activity it can be dissolved by act of court. If the Fed Board or member banks do not comply with the FRA the charter is forfeited and therefore dissolved. Finally, Congress can also repeal the FRA outright and dissolve the Fed without cause.
    "Let it not be said that we did nothing."-Ron Paul

    "We have set them on the hobby-horse of an idea about the absorption of individuality by the symbolic unit of COLLECTIVISM. They have never yet and they never will have the sense to reflect that this hobby-horse is a manifest violation of the most important law of nature, which has established from the very creation of the world one unit unlike another and precisely for the purpose of instituting individuality."- A Quote From Some Old Book

  22. #19
    Quote Originally Posted by devil21 View Post
    It's amazing how many times "we" have had this argument Zip. There's multiple ways to dissolve the Fed, detailed throughout the FRA. The Federal Reserve System is made up of member bank shareholders. If every bank closes up shop, the Fed itself is then effectively dissolved. That would be a vote of the shareholders! If the Fed Board engages in criminal activity it can be dissolved by act of court. If the Fed Board or member banks do not comply with the FRA the charter is forfeited and therefore dissolved. Finally, Congress can also repeal the FRA outright and dissolve the Fed without cause.
    So you think that there is a chance that every bank will close up shop? A bank can also chose to leave the Federal Reserve System. Some have. https://www.bizjournals.com/washingt...oversight.html

    Finally, Congress can also repeal the FRA outright and dissolve the Fed without cause.
    Yes, that is possible- though it would take two thirds to agree.
    Last edited by Zippyjuan; 07-24-2018 at 12:56 PM.

  23. #20
    (Im going to stop quoting you in replies, just answer, in case you're paid-per-reply)

    No one said anything about what the chances of it occurring are, only whether that is a possible way to dissolve the Fed. The answer is YES, that is a possible way to dissolve the Fed, as I stated before....and of course you disagreed and are now moving the goalposts.

    As always, Congress will do what they are told to do.
    "Let it not be said that we did nothing."-Ron Paul

    "We have set them on the hobby-horse of an idea about the absorption of individuality by the symbolic unit of COLLECTIVISM. They have never yet and they never will have the sense to reflect that this hobby-horse is a manifest violation of the most important law of nature, which has established from the very creation of the world one unit unlike another and precisely for the purpose of instituting individuality."- A Quote From Some Old Book

  24. #21
    Quote Originally Posted by devil21 View Post
    (Im going to stop quoting you in replies, just answer, in case you're paid-per-reply)

    No one said anything about what the chances of it occurring are, only whether that is a possible way to dissolve the Fed. The answer is YES, that is a possible way to dissolve the Fed, as I stated before....and of course you disagreed and are now moving the goalposts.

    As always, Congress will do what they are told to do.
    Theoretically it could also be ended if the US is overthrown or destroyed by a meteor. All are possible but extremely unlikely and unrealistic. (You said there were other ways listed in the Federal Reserve Act- still waiting on a link). Legally, the only way it can be ended is an act of Congress. Trump can't end it. Rand Paul can't end it.
    Last edited by Zippyjuan; 07-24-2018 at 01:55 PM.

  25. #22
    Quote Originally Posted by devil21 View Post
    (Im going to stop quoting you in replies, just answer, in case you're paid-per-reply)

    They're hourly. Just look at their posting patterns.
    Quote Originally Posted by TheCount View Post
    ...I believe that when the government is capable of doing a thing, it will.
    Quote Originally Posted by Influenza View Post
    which one of yall fuckers wrote the "ron paul" racist news letters
    Quote Originally Posted by Dforkus View Post
    Zippy's posts are a great contribution.




    Disrupt, Deny, Deflate. Read the RPF trolls' playbook here (post #3): http://www.ronpaulforums.com/showthr...eptive-members

  26. #23
    Quote Originally Posted by NorthCarolinaLiberty View Post
    They're hourly. Just look at their posting patterns.
    I have heard that pay-per-reply is one of the pay structures. It would make sense with Zip since Zip purposely attempts to generate replies by posting questions that usually aren't necessary to the topic. It's one of Zip's long-time hallmarks and is fully on display in this thread.
    "Let it not be said that we did nothing."-Ron Paul

    "We have set them on the hobby-horse of an idea about the absorption of individuality by the symbolic unit of COLLECTIVISM. They have never yet and they never will have the sense to reflect that this hobby-horse is a manifest violation of the most important law of nature, which has established from the very creation of the world one unit unlike another and precisely for the purpose of instituting individuality."- A Quote From Some Old Book

  27. #24
    Quote Originally Posted by devil21 View Post
    I have heard that pay-per-reply is one of the pay structures. It would make sense with Zip since Zip purposely attempts to generate replies by posting questions that usually aren't necessary to the topic. It's one of Zip's long-time hallmarks and is fully on display in this thread.
    How do I sign up? How much do you get?



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  29. #25
    lol
    "Let it not be said that we did nothing."-Ron Paul

    "We have set them on the hobby-horse of an idea about the absorption of individuality by the symbolic unit of COLLECTIVISM. They have never yet and they never will have the sense to reflect that this hobby-horse is a manifest violation of the most important law of nature, which has established from the very creation of the world one unit unlike another and precisely for the purpose of instituting individuality."- A Quote From Some Old Book

  30. #26
    I detailed much of what has happened, is happening and will happen in this thread. Feelin' pretty Kreskin-like these days
    http://www.ronpaulforums.com/showthr...-money-is-done
    "Let it not be said that we did nothing."-Ron Paul

    "We have set them on the hobby-horse of an idea about the absorption of individuality by the symbolic unit of COLLECTIVISM. They have never yet and they never will have the sense to reflect that this hobby-horse is a manifest violation of the most important law of nature, which has established from the very creation of the world one unit unlike another and precisely for the purpose of instituting individuality."- A Quote From Some Old Book

  31. #27
    Quote Originally Posted by timosman View Post
    https://www.federalreservehistory.or...ng_act_of_1935


    President Franklin D. Roosevelt Signs the Banking Act of 1935
    Is DJT about to do the first BIG audit of the FED since 1913? What FDR did was not a full audit.

  32. #28
    Quote Originally Posted by Aratus View Post
    Is DJT about to do the first BIG audit of the FED since 1913? What FDR did was not a full audit.
    https://www.federalreserve.gov/faqs/about_12784.htm

    Does the Federal Reserve ever get audited?

    Yes, the Board of Governors, the 12 Federal Reserve Banks, and the Federal Reserve System as a whole are all subject to several levels of audit and review:

    The Government Accountability Office (GAO) conducts numerous reviews of Federal Reserve activities every year.

    The Board's financial statements, and its compliance with laws and regulations affecting those statements, are audited annually by an outside auditor retained by the independent Office of Inspector General (OIG). The results of this independent audit are released to the Congress and the public.

    The Board’s OIG conducts independent audits, evaluations, and criminal investigations relating to the programs and operations of the Board, as well as those Board functions delegated to the Reserve Banks. Completed OIG reports are publicly available as well as a dynamic Work Plan that lists all of the OIG’s ongoing and planned audit and evaluation work. In addition, completed and active GAO reviews and completed OIG audits, reviews, and assessments are listed in the Board’s Annual Report.

    The financial statements of the Reserve Banks are also audited annually by an independent outside auditor.

    Each week, the Federal Reserve publishes its balance sheet and charts of recent balance sheet trends; it also provides an interactive guide to the Fed's balance sheet. The balance sheet is included in the Federal Reserve's H.4.1 statistical release, "Factors Affecting Reserve Balances of Depository Institutions and Condition Statement of Federal Reserve Banks."

    In addition, the Reserve Banks are subject to annual examination by the Board. The Board's financial statements and the combined financial statements for the Reserve Banks are published in the Board's Annual Report.

    See the audit page on the Federal Reserve Board’s website for more information on all of the above audits as well as more information on the accounting, financial reporting, and internal controls of the Federal Reserve Board and Federal Reserve Banks.

    https://www.federalreserve.gov/about...statements.htm

    Federal Reserve System Audited Annual Financial Statements

    The Board of Governors and the Federal Reserve Banks are all subject to several levels of audit and review. The Reserve Banks' financial statements are audited annually by an independent public accounting firm retained by the Board of Governors. To ensure auditor independence, the Board requires that the external auditor be independent in all matters relating to the audit. Specifically, the external auditor may not perform services for the Reserve Banks or others that would place it in a position of auditing its own work, making management decisions on behalf of the Reserve Banks, or in any other way impairing its audit independence. In addition, the Reserve Banks, including the consolidated LLC, are subject to oversight by the Board.

    The Board of Governors' financial statements are audited annually by an independent public accounting firm retained by the Board's Office of Inspector General. The audit firm also provides a report on compliance and on internal control over financial reporting in accordance with government auditing standards. The Office of Inspector General also conducts audits, reviews, and investigations relating to the Board's programs and operations as well as of Board functions delegated to the Reserve Banks.
    Audited financial statements at this link.



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