Barney “The Gay Dinosaur” Wants Runaway Inflation
Yes, you heard that right. Barney Frank wants runaway inflation!
Why? Well, first answer me this: What happens when the Fed increases interest rates? Historically, inflation ratchets up. Currently, there are several members on the Federal Reserve Board who are “hawkish.” That means, with all this monetizing of the debt under the enigmatic title of Quantitative Easing, they are VERY concerned about runaway inflation if the Fed increases the interest rates.
Right now, since the Fed and Congress have mucked around too much with the economy, it’s a game of plugging holes in the economic dam as fast as you can to keep it from bursting and drowning Americans in a tidal wave of rapid inflation. Obviously, keeping interest rates low is paramount to keeping the structural stability of a damaged economic dam in check. Barney Frank wants to pull that emergency plug by getting rid of those hawkish board members.
So, back to my original question: Why? Well, considering that Barney Frank championed ACORN until it became a political liability and was, quite literally and figuratively, in bed with Fannie Mae which began the financial collapse of our economy in 2008, one can only conclude that Barney Frank continues to embrace the Cloward-Piven Strategy to effect Change you can believe in. Either that, or he has been smoking way too much ganja:
Rep. Frank targets Fed hawks
Wants to strip regional bank presidents of FOMC vote
May 3, 2011, MarketWatch
Under its current structure, 12 of the Fed’s 19 members vote at interest rate setting meetings. The seven members of the Fed’s board of governors in Washington, who are appointed by the president and confirmed by the Senate.
The regional Fed presidents are picked by their individual boards of directors, often regional bankers and local business leaders. While the president of the key Federal Reserve Bank of New York also always has a vote on the FOMC, the remaining eleven Fed bank presidents rotate as voting members.
In a discussion on CNBC of his bill, Frank said the current Fed structure is undemocratic. He noted that regional Fed bank presidents are not picked by elected officials, so they should not vote on key public-policy issues such as setting the level of interest rates.
In other words, Barney Frank wants to strip control from the board members on the Fed and give absolute control over the interest rates to the government! More government, more control, more economic disasters. Does anyone care to guess as to which ideological path this is heading down? I’ll help you out: Communism!
Regional Fed bank presidents are picked by their boards of directors, made up of regional bankers and local business leaders.
“I think it is fine for them to sit in and make recommendations,” but when it comes to voting they should be excluded, Frank said.
Their presence as voting members “it totally inconsistent with any kind of theory of democracy,” Frank said.
“It undermines legitimacy when you have literally people who are in the financial industry picking people to vote on setting interest rates,” Frank said.
Uh… Okay, let’s all pause for a moment and let the hypocrisy of Barney’s statements really sink in…
Mark Calabria, director of financial regulation studies at the Cato Institute, a libertarian think-tank said Frank doesn’t like that some regional bank presidents are raising questions about inflation.
“It is a shot across the bow — shut up, I don’t like what you are saying,” Calabria said.
Frank’s legislation is expected to be resisted fiercely by the regional bank presidents and their allies on Capitol Hill.
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