cross-posted from: https://beehaw.org/post/24179103
Federal prosecutors have opened a criminal investigation of Federal Reserve Chairman Jerome Powell, he confirmed on Sunday evening.
Powell said the probe was the result of the Fed “setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of” President Donald Trump.
Terrible precedent that will harm our economy’s ability to recover from high unemployment or inflation.
Powell’s statement is worth a read
Absolutely fucking insane. Remember when you were a child, and thought all grown-ups knew what they were doing? Were you ever wistful, thinking about how great it will be when you’re grown? Remember what it was like to have faith in our institutions?
Imagine what it must be like to be a normal, sane, highly educated and successful professional, and having to deal with the trump administration 24/7/365
This guy needs a medal when this is all done
This describes like 80% of the Federal Workforce.
Welp, RIP global economy.
This isn’t an if now, it’s a when.
I’ve been saying this for forever. A fascist needs to create an economic catastrophy so that the common chud believes only the fascistcan fix it with as many years as needed
Powell’s first response suggests this is going to be gloves off - and the bond market should be worried. If China wanted to establish the renminbi as a replacement for the dollar as the world’s reserve currency they could not have found a better method than have the US President try and prosecute the head of the Fed.
Official video statement by Powell https://www.youtube.com/watch?v=KckGHaBLSn4
I don’t think they want RMB to become the world’s reserve currency. It’s got too many downsides for them. The destruction of the dollar’s domination is desirable for them and almost everyone but the US though.
I disagree. A sizeable chunk of America’s financial might is being able to export their inflation thinly around the world yet retain the power of the defacto global reserve. So much of their power evaporates with a weak currency. China’s manufacturing dominance no longer solely based on an endless pool of cheap labour, but highly advanced automation can take a strong currency. Plus the relative hit to their only rival makes it highly desirable.
Edit: This is a pivotal moment to step in with strength and market based openness and begin to usurp the US who are now burdened with being unreliable markets. They were broad, deep financial oceans. Now its treacherous shoals filled with pirates. Money will flee.
Oh I didn’t quite mean that. Yes China wants dedollarization. As do we. Yes China isn’t successful because of cheap labour. China never really was getting the world’s manufacturing solely because of the cheap labour but even that stopped being true a long time ago. Still having a sovereign currency is helpful for internal economic management. If you become the world’s reserve currency, you lose some of that sovereignty. It also has implications on the ability to be a net exporter. That’s why I’m saying I don’t think they want 60% of the world’s reserves to be in RMB. It’s usage is increasing but I don’t think China wants it to ever get the exirbitant privilege status because of the cons that come with would be bad for their project, e.g. their prod self-sufficiency.
Fair
If you want to see where this ends up, look up what Erdogan did with interest rates, how it crashed the lira and economy is still struggling even after he back tracked.
This is crazy on its own. Crazier that its before the case for Cook’s removal gets to the Supreme Court. And crazier again because he’s set to be replaced as the head in a few months anyway
I find it crazier that Trump’s first year in office isn’t over yet. Inauguration was 20th Jan 2025.
Imagine what a democratic socialist of this level could achieve. A country could be completely rejuvenated using the same methods in the other direction.
… except I guess the billionaires wouldn’t be so cooperative.
A lot of those methods involve completely ignoring people’s interests or the legal system, the international order, deliberately trying to kneecap institutions that get in your way, filling the government with people of one political view while trying to remove those of the other political views, threats, bribes, and weaponising the justice department. I can see how that worked to get more done but I think even with noble goals thats a pretty expensive cost to get there
Maybe not. It takes a lot longer and greater resources to build something than to destroy it.
Roosevelt did pretty well in 100 days
The federal government and the US as a whole were very different beasts in those days.
I guess when enough things are broken you do whatever it takes.
Also crazy because Trump was the one who made Powell the chair of the Fed.
he has a memory of a goldfish, or when he last snorted cocaine.
CBC article headline: U.S. federal reserve chair says justice department has threatened him with criminal indictment
NYT article headline: Federal Prosecutors Open Investigation Into Fed Chair Powell
Suck a dick NYT. Fascist windbags. You win the Muhammad Saeed al-Sahha, Minister of Information prize for journalism.
Shitler and the turd Reich won’t stop until they have absolute power and everyone who doesn’t support them is lying in a mass grave
Won’t be too many people still alive.
