The Self-Regulation of Rent-Seeking and Merging the Fed with the Treasury
First and foremost, has anyone been paying attention to Saudi Arabia? Damn. Not only have they instigated the opening salvo in the Islamic Reformation, but they are now openly self-regulating the corrupt institutional rent-seeking which has infested most of the world’s cultures. Longtime readers will remember that this was one of the staples of the POM thesis which was difficult to understand and accept.
It was considered that the likelihood of wealthy establishments self-regulating, and correcting the systemic corruption which was bred from within the system, to be so low as to be not worth serious consideration. Yet, years later, we are seeing the self-regulating of rent-seeking taking place in America, as well as Saudi Arabia, and other nations that have come to the realization that the old world is fading.
Back on October 27, 2015, I published an article about the Centennial Monetary Commission and its purpose of redefining the mandates, powers, and structure of the Federal Reserve. That piece explored in detail the need to bring the Federal Reserve back under the oversight and influence of the US Treasury.
Such a move has been prevented by past administrations, and may continue to be so under the Trump administration, but some interesting things are beginning to happen.
The obvious one is how both Trump and Treasury Secretary Steve Mnuchin have been “talking-down” the dollar. Many pundits have expressed concern that the Trump administration is attempting to take down the dollar. This is unlikely, as further interest rates coupled with some “talking-down”, along with tax cuts and job creation, will fuel the economy and keep things in balance as monetary policy is normalized and the debt-to-GDP ratio is reduced.
It is expected that the new Trump pick for Federal Reserve Chairman will continue the normalization which began under Janet Yellen. This would mean a fifth interest rate increase in December and two more next year. The new Chairman Jerome Powell is considered more hawkish, so there could be a few surprises as well.
Jerome Powell was Undersecretary of the Treasury under the George HW Bush administration, and has been affiliated, and worked directly for, a list of establishment companies and institutions, including the infamous Carlyle Group. But don’t let this skew your perception of what is happening. The very definition of “self-regulating” when it comes to rent-seeking is that those within the establishment themselves will make incremental changes from the inside.
Current Treasury Secretary Mnuchin has influence over Jerome Powell and has been recommending him as the new Fed Chair to Trump for the last year. Powell is an interesting figure in that he has spoken out against the mandates detailed in the Centennial Monetary Commission. Or so it would seem. Powell, though outspoken about the need for there to be a clear line between politics and policy, has been more outspoken for the need for a reduction in regulations. This is exactly what we would expect to see with the reversal of socialist strategies meant to weigh down a system of governance and socioeconomics with useless regulations.
Trump, for the first time ever, maybe (I’m having a Crown Royal drink and don’t feel like looking anything more up tonight), didn’t follow tradition and appoint the incumbent from the last administration to continue as Fed chairman or chairwoman in the case of Yellen.
In addition, and another first, maybe (you know the deal), Powell is not an educated economist. At least not institutionally educated, which could be better, as most educational institutions are infested with socialist curriculums and human weakness.
In speeches Powell repeats a common phrase. “…trust in public institutions…” or some variation on that theme always accompanies his talking points on reducing regulations and shaping the future of the Federal Reserve. The one obvious point to make in relation to his comments, is that the Fed is in fact a private institution, though it is hardly described that way by those within the system.
The process of reversing the Federal Reserve Act of 1913 will be complex. It will not happen overnight. It will take years, and perhaps even decades. Sudden changes to the function of the system will cause devastating monetary and financial turmoil. This must be avoided at all costs, as such periods lead to revolutions, and revolutions can be hijacked and directed for purposes that do not consider the well-being of the mass populations.
The endgame will likely consist of the Fed being merged back into the Treasury, and also becoming a bank focused on domestic central banking services as opposed to money creation and international reserve accumulations.
The post from 2015 is reprinted below. Sometimes we need to shift away from the Crown Beast and esoteric material, to replant ourselves in the dryness of monetary policy and regulation. Though it excites me to no end, I do recognize that the other topics are much more exciting. But it does all blend together, and because of that, we need a healthy balance of both. – JC
Sometimes the complexity and level of artisan skill required to engineer the multilateral monetary framework are staggering. The socioeconomic and geopolitical shifting which takes place behind the closed doors of think tanks and international institutions would make for intriguing spy-like novels on par with the tales of John le Carré.
Such stories would be reminiscent of the old movie the House of Rothschild where skullduggery and manipulation were used to increase the sovereign debt of European nations. The leaders and Kings of Europe refused to borrow money from Mayer Rothschild and in turn Napoleon conveniently escaped from exile on the Island of Elba in February of 1815 and began to wage war upon Europe again.
The allies formed the Seventh Coalition to fight against Napoleon and quickly diminished their reserves and loan capacities before finally turning to Mayer Rothschild for additional funding to continue the fight. Once the Rothschild loan was secured Napoleon was defeated at the Battle of Waterloo and the tide of history was changed forever.
The Federal Reserve should be looked upon as the Napoleon of the 20th Century. It was used to fund the growth of the military-industrial complex and expand the central banking system all around the world. And like Napoleon, the Federal Reserve performed its function as strategized and will now be modified to fit within the larger macro multilateral framework which it helped create.
The evolution of the Federal Reserve is complicated and would require almost a book-length discourse to fully grasp the details and policies which have grown and shaped monetary and fiscal policy both within the United States and throughout the world.
This evolution took a leap forward in March of 1951 when the Fed gained broader independence from the US Treasury, executive branch, and Congress. The Federal Reserve Treasury Accord ended the pressure on the Fed to peg long-term interest rates and minimize accountability to the US Congress.
This evolution of strategy and mandate allowed the Fed to become the central bank of the world and indirectly set international monetary policy for other countries. Not to mention expand funding for the military-industrial complex and leverage both physical and economic influence on foreign countries.
With that being said, the US Congress still has a duty to exercise oversight and can adjust or modernize the Federal Reserve Act when it is appropriate to do so. What exactly would entail appropriate causation can be extremely suggestive of external influence and special interests within the larger international banking community, such as experienced by the leaders of Europe when confronted with the threat of Napoleon.
The Fed is now operating in a vacuum and its mandates are no longer aligned with the domestic interests of the United States. This inevitable discourse between domestic fiscal responsibility and the waning foreign responsibility to those central banks holding vast amounts of USD denominated securities is creating a situation that will need to be addressed sooner rather than later. The inability of the Fed to raise interest rates is based primarily on the negative effect such a move will have on foreign countries. This lack of movement on policy normalization by the Fed could very well act as the catalyst for Federal Reserve reform.
In a recent speech to Congress, Paul H. Kupiec of the American Enterprise Institute stated that it is the responsibility of Congress to re-examine the mandates, powers, and responsibilities of the Federal Reserve. An appropriate revision of Fed legislation would be enacted based on that re-examination.
Kupiec goes on to discuss how the overall structure and strategy of the Fed would need to be addressed within a reasonable time frame. The Centennial Monetary Commission is scheduled to complete a report by December 2016, on changes to Fed policies and mandates. Kupiec suggests that this time table be shortened while stating that the monetary mandate of the Federal Reserve must be more specific and less open to interpretation.
The interesting thing about Paul H. Kupiec is that he has previously worked on banking and financial market policy for the International Monetary Fund (IMF), Federal Reserve Board itself, the Federal Deposit Insurance Corporation (FDIC), and the Bank for International Settlements.
The BIS is considered the apex of the central banking system which the US-funded military-industrial complex helped establish around the world. As such, it is the BIS which sets the international mandates on monetary reform and multilateral macroprudential policy.
A BIS and IMF affiliated economist and policymaker testifying before Congress on reforming the Federal Reserve Act is tantamount to Mayer Rothschild cutting off military funding to Napoleon during the Battle for Waterloo after the leadership of Europe had been consolidated under his loan mandates and terms.
The interesting part is that the suggestions on reforms to the Federal Reserve Act are strategically similar to what many Americans have been conditioned to demand of the Fed. The engineering of opposition to the Federal Reserve has been extremely effective. Whether it’s Ron Paul or the Alex Jones network, opposition to the Federal Reserve has been directed and focused on a few key points.
These points were itemized by Paul H. Kupiec, formerly of the IMF and Bank for International Settlements, in his testimony before Congress on July 22, 2015. The points of interests regarding the Federal Reserve Reform Act of 2015 are as follows:
1. Requirement for Policy Rules of the Federal Open Market Committee – This point would give
the General Accounting Office (GAO) the opportunity to validate FOMC policies and improve the
transparency of the Fed process.
2. FOMC Membership – This would put an end to favored voting rights within the FOMC as
such rights are less important today now that the Fed has completed its initial mandate.
3. Stress Test Transparency and Disclosure of Supervisory Correspondence – This would force
the Fed to disclose stress test models used to determine and set specific monetary policies and
4. Cost-Benefit Analysis and Review of New Regulations – The Fed has been exempt from
regulations that require it to perform cost/benefit analysis of new regulations. This would change
under the defined reforms.
5. Notification of Intent to Engage in International Standard-Setting Bodies – Congress and the
public must be made aware of international standard meetings in which the Fed participates, as
well as the material implications for the US. (Do not let this reform mislead you into thinking that
American sovereignty will be protected. As long as the Congress set has oversight, this reform
will ensure that the Fed implements the multilateral mandates as designed. A new cheques and
balances maintained by the leveraged politicians.)
6. Federal Reserve Special Lending Powers – This reform will prevent the Fed from legally
lending to a distressed and potentially insolvent financial firm. This was a big issue during the
last financial crisis.
7. GAO Audits – Ensures and validates that the FOMC’s policy directive is consistent with the
directive policy rule reported to Congress. Most will recall the Ron Paul push to audit the Fed.
As long as the Congress is controlled and leveraged by international banking interests, the GAO
audits will serve the purpose of the multilateral mandates.
This shortlist of Federal Reserve policy reforms accurately reflects the Cultural and Socioeconomic Interception (CSI) engineering which has taken place through the alternative media and Tea Party propaganda. (Reference post The First False Flags for a definition of CSI) The fact that these reforms are being promoted and testified before Congress by someone affiliated with the Bank for International Settlements, representing the international banking interests, should give all Americans pause.
Those who have been leading us down the garden path of liberty and conspiracy have failed to both recognize and educate the disorganized masses on the actual methodology of the multilateral transmutation of the international monetary system. Reducing the power and influence of the Federal Reserve fits exactly into the mandates of the multilateral.
The same can be said of the political platform of Donald Trump. The “Make America Great Again” pledge and mantra is the condensed talking point which is based on the depreciation of the dollar. This multilateral depreciation will reduce the cost of US manufactured goods and increase exports. This means higher GDP, reduced debt-to-GDP ratio, and more jobs for Americans.
The multilateral mandates are being sold to Americans through alternative media and establishment opposition. The analysis presented here on POM has been attacked and/or ignored by so many sites that promise the truth. Yet, readers and followers of those sites and personalities have been left more confused and less informed about everything that is taking place internationally.
Long-time readers of POM have been provided a front-row seat on the transition from a unipolar USD dominated world to a multilateral SDR denominated world. The fact that so much of the information presented here is trending accurately is a testament to the validity of the analysis.
Who would have thought that the Bank for International Settlements and the Tea Party, Ron Paul, and the Alex Jones network would all want the same thing? Truth is definitely stranger than fiction, and conspiracy theory is not the conspiracy we thought it was at all. – JC
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JC Collins can be contacted at email@example.com