Why not try it and see?
Fed Governor Jerome Powell's Speech at Catholic University
- Thread starter piezoe
- Start date
On thing in your post above that deserves comment is your assertion, and others too have made the same absurd assertion, that the U.S. Federal Reserve is a "shadowy institution" and that it operates "hidden from the public."
The Federal Reserve is by law to operate as an independent agency of the government and while subject to extensive review and oversight it is isolated, by law, from congressional, or other political interference. One may object to Fed independence, though such a view must be held in a vacuum, because all historical evidence is to the contrary. (See note 1)
One may not however legitimately claim that the Fed is a "shadowy institution" that operates hidden from the public eye. Any such claim is absurd, and anyone making such a claim will immediately lose credibility in the eyes of any informed person. (see Note 2)
_____________________________
N.B. the following notes have been copied directly From Governor Powells Speech (or related footnotes) at Catholic University on Fed 9, 2015.
#1 : The seminal research establishing a link between central bank independence and macroeconomic performance is Alberto Alesina and Lawrence H. Summers (1993), "Central Bank Independence and Macroeconomic Performance: Some Comparative Evidence,"
#2 : ...
the Fed does not set its own goals for monetary policy. Congress assign[ed] goals of price stability and maximum employment--that is, the highest level of employment achievable without threatening price stability. Federal Reserve Board members are nominated by the President and must be confirmed by the Senate. The Chair of the Fed appears before both the House and Senate oversight committees twice every year to report on monetary policy, and, in practice, to respond to questions about anything and everything related to the Fed's activities. The Chair and other Board members routinely make additional appearances before the Congress and meet frequently with members.
More generally, the Fed is open and transparent in its operations, including those related to monetary policy, accounting for itself in timely post-meeting FOMC statements, minutes, broadcast press conferences, and speeches. Details about the Fed's balance sheet are on the public record; in fact, every security owned by the Fed is identified individually on the website of the Federal Reserve Bank of New York. The FOMC's plans to normalize the balance sheet have been the subject of exhaustive discussion--in FOMC meetings, in speeches by policymakers, and among the many journalists and academics who analyze and discuss Fed policies. Last September, the FOMC published its Normalization Principles, which set forth its plans to reduce the balance sheet to a more normal level over time.
The Fed's financial statements are also a matter of public record, and are audited annually by independent, outside auditors under the watchful eye of the Fed's independent Inspector General. ... the Federal Reserve's financial statements, though they contain very large numbers, are relatively straightforward--much simpler than those of a typical regional bank.
The Fed's operations, including its role regulating and supervising banks, are subject to extensive review by the GAO. If you visit the GAO's website, you'll find more than 70 reports since the crisis that are wholly or partly dedicated to reviewing the Fed's operations, including the emergency lending facilities ... The GAO works closely with the Fed's Office of Inspector General, which is involved in both financial audits and other oversight of ... operations.
The extensive oversight ... intensified ...as the Federal Reserve responded to the financial crisis. .. lending facilities were also the subject of review by the Fed's Inspector General, the Special Inspector General for the Troubled Asset Relief Program, the Congressional Oversight Panel, the Financial Crisis Inquiry Commission established by the Congress, and numerous congressional hearings and reviews.
The Fed's actions were also fully transparent. As always, monetary policy decisions were debated and voted on by the FOMC and announced immediately, with detailed explanations provided in the minutes of these deliberations. The Fed provided public guidance on its plans to purchase assets and made those purchases in open, competitive transactions that were disclosed as soon as they occurred.
The terms and conditions for every lending facility were publicly disclosed. The amounts lent under each program were published on the Fed's weekly balance sheet report. The Fed created a website and issued a monthly report to the Congress disclosing details on all loans, such as the quantity and quality of collateral posted by borrowers.
Frankly I'm dismayed at the lack of intellect sometimes displayed by some of my fellow ET members. It's certainly legitimate to express contrary views, and in particular there can be no question that an alternative way for a Central Bank to be set up is as a non-independent arm of the government. Although historical evidence tells us this is not a good idea, it is still a point of view that one can argue, no matter how shallow the argument.
But to claim that the Fed operates as a shadowy institution hidden from public view is an absurdity no less ridiculous than, say, asserting that the sun revolves around the Earth. How is it that any well-read person can hold such nonsensical views? (I don't want to say it. I don't even want to think it. But have I no choice but to conclude that some of my favorite ET colleagues are not very well-read?)
But to claim that the Fed operates as a shadowy institution hidden from public view is an absurdity no less ridiculous than, say, asserting that the sun revolves around the Earth. How is it that any well-read person can hold such nonsensical views? (I don't want to say it. I don't even want to think it. But have I no choice but to conclude that some of my favorite ET colleagues are not very well-read?)
Because it is a complete and total waste of my time, that's why.
Of course - he goes against your point of view, so he's an amateur. Just like Jim Grant (who you didn't even know before I pointed him out).
You're either a paid Fed shill (like this campaign) or one of the most out-of-touch individuals I have ever met. If the Fed were truly transparent, we'd know the nature of the assets it has purchased. If it were truly transparent, there wouldn't be any issue on auditing it. The Fed would be all "Sure, we're as transparent as we claim, there's nothing to hide. Have at it."
You claim this is about taking decision making away from the Fed, but nothing in Rand Paul's bill talks about removing decision making from the Fed.
We have no idea what discussions went on that caused the Fed to bail out various financial institutions from the financial crisis. All we have is snippets of conversations given to us.
The Fed's auditor has stood before Congress several times and answered that they could not answer the types of questions regarding assets that Senators and Congressmen wanted, because that wasn't the nature of their audit. Well, we need to make it the nature of their audit.
Go home, shill!
The assets the Fed purchases are listed individually on the New York Branches Website! ny.frb.org
Tao, it is becoming increasingly clear that you are simply not availing yourself of the information available to you. Consequently you have acquired this very distorted view of the U.S. Federal Reserve System. If you will take the time to go to ny.frb.org you will find that there is a tremendous amount of detail about each days Fed operation, what specific assets are purchased, etc. There you will find many, and perhaps all, of your questions answered in detail. You will also find lists and/or tables of all assets purchased in the past in the archives. It is all there for you in excruciating detail. Please promise you will spend some time on the Fed's websites so we may move on to topics that are at least debatable. I find federal agency web posting to be reliable, and I trust them simply because they are done by salaried employees without political purpose.
What I have found alarmingly unreliable is correspondence from one of our Senators, Roger Wicker. He sent me information that I know to be both technically incorrect and highly misleading, not regarding the Fed however. That reminded me that our Congressmen and Senators are free to make all sorts of outrageous and misleading claims in the interest of getting elected. They regularly do so! I would be very careful with regard to various bits of grandstanding we are subjected to in both our U.S. House and U.S. Senate. Don't swallow it hook line and sinker. You'll get caught!!
Here is an example of the type of oily, duplicitous, highly skilled political grandstanding that really disgusts me. (This example is from Senator Paul)
"
If the Fed has purchased more than $2 trillion dollars of “distressed” assets, don’t taxpayers deserve to know what they bought?
Did they buy the assets of friends and acquaintances?
Did they buy any liabilities from companies they used to work for?
"
Now why does he do this? He knows that every single asset the Fed buys is listed on the NY Feds website; yet he persists in this drivel for one reason. He knows that his unsophisticated, Kentucky bumpkin constituents will assume information is being hidden from them and that their good Senator -- "he seems like such a nice young man" -- is working on their behalf to force our "shadowy" Fed to come clean and stop stealing from them, or whatever they conjure up when the smooth talking Senator Paul mesmerizes them.
Tao, don't get caught up in this. Do your own thinking.
P.S. What makes Rand Paul's duplicitous pandering even more despicable is that not only does he know that the Fed publicly discloses every single asset they acquire; He also knows that by referring to his Bill as an "Audit the Fed Bill" he will reinforce the view he is trying to instill in his naive constituents that the fed is not audited. He also knows that the Bill has zero chance of passing. His hard working Kentucky constituents deserve to be outraged! -- outraged at Senator Paul for wasting their time and money.
Sad it is to learn that this scion of the great Senator Ron Paul has not one shred of his Dad's integrity.
Last edited:
Every single asset is listed on the Fed's website, is it?
We're not talking merely about the assets from POMO, here. We're talking about information on foreign currency swaps, and agreements with foreign Central Banks. What banks took advantage of the discount window, etc? Some information was published as a result of lawsuits - not Fed "transparency".
Great quote from the Audit the Fed bill:
"The Fed’s hyped “independence” is largely a myth created by Fed officials and its Wall Street/financial sector supporters who benefit from its lack of transparency. The Fed is
independent from the Executive Branch but not from Congress. Audit the Fed does not change or set monetary policy; it merely grants Congress retrospective access to the
information used to determine and carry it out, so Congress can properly understand, oversee, and evaluate the Fed.
Stop drinking the koolaid, piezoe. You keep going on and on about Fed transparency. What do you (the Fed) have to hide?
We're not talking merely about the assets from POMO, here. We're talking about information on foreign currency swaps, and agreements with foreign Central Banks. What banks took advantage of the discount window, etc? Some information was published as a result of lawsuits - not Fed "transparency".
Great quote from the Audit the Fed bill:
"The Fed’s hyped “independence” is largely a myth created by Fed officials and its Wall Street/financial sector supporters who benefit from its lack of transparency. The Fed is
independent from the Executive Branch but not from Congress. Audit the Fed does not change or set monetary policy; it merely grants Congress retrospective access to the
information used to determine and carry it out, so Congress can properly understand, oversee, and evaluate the Fed.
Stop drinking the koolaid, piezoe. You keep going on and on about Fed transparency. What do you (the Fed) have to hide?
But, Your Honor, he IS an amateur economist. As I said, he is a nice guy, well meaning at least, went to Harvard Divinity School, business man, politician and Reagan appointed him to head up the Office of Management and Budget.
I disagree with pretty much all of his opinions.
Last edited:
EVERYTHING, including transactions with foreign banks and swap transactions are listed! All Central Bank buying and selling transactions are disclosed to the public, usually the same day of the transaction.
EVERYTHING IS SHOWN!
Last edited: