Homeland Stupidity

Former Federal Reserve official Bill Dudley claims the Federal Reserve bases its policies solely on an objective evaluation of economic conditions. This is an example of a so-called noble lie — a fiction told by elites to the masses supposedly for the people’s own good, but really designed to maintain popular support for policies that benefit the elites. Dudley’s noble lie is designed to bolster a rapidly (and deservedly) eroding trust in the Federal Reserve. The truth is the Federal Reserve has always been influenced by, and has always tried to influence, politics.

Last week, the facade of Federal Reserve “independence” was dealt a severe blow. Ironically, the person who broadcast to the world that the Fed is anything but “independent” was ex-New York Fed President Bill Dudley. Dudley wrote that, “Trump’s re-election arguably presents a threat to the United States’ and global economy, and if the goal of monetary policy is to achieve the best long-term economic outcome, the Fed’s officials should consider how their decisions would affect the political outcome of 2024.”

Proposals targeting individuals based on their political beliefs — no matter how noxious they are — are a step toward criminalizing those beliefs. If the government gains new powers to treat those with abhorrent beliefs as potential criminals, it will not be long before those powers are used against anyone who challenges the welfare-warfare status quo.

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The Federal Reserve, responding to concerns about the economy and the stock market, and perhaps to criticisms by President Trump, recently changed course on interest rates by cutting its “benchmark” rate from 2.25 percent to two percent. The Fed’s action is an example of a popular definition of insanity: doing the same action over and over again and expecting different results.

With a national debt approaching $23 trillion and a trillion dollar deficit for this year alone, Congress last week decided to double down on suicidal spending, passing a two year budget that has the United States careening toward catastrophe. While we cannot say precisely when the economic crash will occur, we do know that it is coming. And last week Congress pounded down on the accelerator.

The American people overwhelmingly do not want to go to war with Iran and the president wants to be re-elected. Will he return to the political base that elected him on promises of getting along with the rest of the world, or will he continue to follow his neocon advisors down the road to a failed presidency?