{"id":53810,"date":"2020-06-22T19:08:34","date_gmt":"2020-06-23T00:08:34","guid":{"rendered":"https:\/\/olduvai.ca\/?p=53810"},"modified":"2020-06-22T19:08:37","modified_gmt":"2020-06-23T00:08:37","slug":"fed-accountability-is-a-farce","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=53810","title":{"rendered":"Fed Accountability is a Farce"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.cobdencentre.org\/2020\/06\/fed-accountability-is-a-farce\/\">FED ACCOUNTABILITY IS A FARCE<\/a><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The Fed claims they are \u201c<a href=\"https:\/\/www.federalreserve.gov\/faqs\/about_12798.htm\" target=\"_blank\" rel=\"noreferrer noopener\">accountable to the public and the U.S. Congress<\/a>.\u201d But what good is accountability, if the public and Congress have little understanding of what the Fed does? Even worse, if no one has the power to stop the inflationary actions of the Fed, what good are the accountability measures in place?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This week, Chair Powell addressed Congress and provided the&nbsp;<a href=\"https:\/\/www.federalreserve.gov\/monetarypolicy\/files\/20200612_mprfullreport.pdf\" target=\"_blank\" rel=\"noreferrer noopener\"><em>June Monetary Policy Report<\/em><\/a>. The process of testifying before Congress is very much farcical because what the Fed says has no bearing on what the Fed does. We can assume few members of Congress actually understand monetary economics. But what if many of them did, as well as the general public, could the Fed really get away with all of this?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Reviewing the&nbsp;<a href=\"https:\/\/www.federalreserve.gov\/newsevents\/testimony\/powell20200616a.htm\" target=\"_blank\" rel=\"noreferrer noopener\">Chair\u2019s testimony&nbsp;<\/a>to Congress reveals how little the Fed and Congress know about economics and illustrates how ineffective testimony before Congress really is.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In his speech, Powell lists many of the lending programs (Paycheck Protection Program, Main Street Lending Program and Term Asset-Backed Securities Loan Program) but when it comes to corporate bond buying program, all he offered was:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>To support the employment and spending of investment-grade businesses, we established two corporate credit facilities.<\/p><\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">Like a teenager trying to hide purchases made on a parent\u2019s credit card, he did not explicitly list the Primary and Secondary corporate credit facilities by name. He only said the two \u201ccorporate credit facilities,\u201d the only two the Fed has. How issuing debt to corporations or trading their bonds on the stock exchange supports employment or spending is anyone\u2019s guess. What does it matter anyway? Even if he said $750 billion may go to buy corporate bonds, who would stop them?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">He moved from vagueness to deception quickly with the statement:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>FED ACCOUNTABILITY IS A FARCE The Fed claims they are \u201caccountable to the public and the U.S. Congress.\u201d But what good is accountability, if the public and Congress have little understanding of what the Fed does? Even worse, if no one has the power to stop the inflationary actions of the Fed, what good are [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[2683,7380,303,16888,29926,1796],"class_list":["post-53810","post","type-post","status-publish","format-standard","hentry","category-economics","tag-accountability","tag-cobden-centre","tag-fed","tag-jerome-powell","tag-robert-aro","tag-us-congress"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/53810","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=53810"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/53810\/revisions"}],"predecessor-version":[{"id":53811,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/53810\/revisions\/53811"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=53810"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=53810"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=53810"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}