David Stockman Blasts New Fed Chairman
by Stephen Lendman (stephenlendman.org - Home - Stephen Lendman)
Wall Street choses Fed chairmen and governors. Presidents announce them. Senate members rubber-stamp what monied interests want.
In a Thursday Rose Garden announcement, Trump called Jerome Powell "a wise steward of the Federal Reserve. It will have the leadership it needs in the years to come" - code language for Wall Street getting its preferred chairman from a president ignorant of monetary and fiscal policies.
Powell is the mirror image of Janet Yellen. Stockman called him "Janet Yellen Powell (with) pants and a tie," stressing "(i)t can't get any worse then this." Here's why:
Powell is "a Wall Street-coddl(er) and Washington lifer."
As Fed governor since May 2012, he voted "approximately 44 times to drastically falsify interest rates and to recklessly and fraudulently monetize trillions of the public debt."
His "destructive central banking (agenda) is literally asphyxiating capitalist prosperity in America" - impossible to achieve by tax cuts for the rich and corporate America - the scam Trump and Republicans support.
Under Yellen and Powell et al, Fed interest rate policy ravaged savers, their bank and money market accounts losing "9%" of their value over the past "65 months," adjusted for inflation.
Powell failed to dissent throughout his tenure as Fed governor. Now he's chairman.
"Any semblance of fidelity to sound money and free market capitalism" is long gone, said Stockman.
Calling Powell's appointment "a shocker," Stockman said he's "deep in the tank for the speculative classes…(T)here is really no hope at all that the era of Bubble Finance will end" - short of "a thundering financial crash" baked in the cake ahead.
Fed-engineered artificially low interest rates feed speculative excess - a bonanza for Wall Street and large investors, a disaster for savers, especially retirees.
"…Greenspan-Bernanke-Yellen-Powell style monetary central planning is a clear and present danger to capitalist prosperity. It amounts to a clueless confession of willful incompetence," said Stockman, adding:
The "domestic and global financial system (is) booby-trapped with massive and incendiary financial bubbles, unsustainable leverage in both overt and covert forms (i.e. options), and relentless, liquidity-fueled speculation that infects the very warp and woof of most financial markets."
A bad ending to the madness awaits when the music stops. It always does eventually. This time the crash heard round the world may be more thunderous than earlier ones - ordinary people hurt most like always in times of crisis.
Stockman: ...' "Janet Yellen Powell' has drawn the short straw. On his watch, the whole misbegotten enterprise (since Alan Greenspan's appointment as Fed chairman in 1987) will blow sky high."
"(T)he end of bubble finance (is coming) in the very near future."
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