FOMC HAS CRIMINALS RUNNING THE SHOW

[Joanne98]

Last night, I analyzed a long, long speech from 1953, by Mr. McChesney Martin Jr, the chairman of the Federal Reserve under Eisenhower, Kennedy and LBJ. In it, he talks about ‘free markets’ and how the Fed desired to balance everything while releasing all sorts of market forces. During all the years since then we have lived in a very inflationary, destabilized world which has surprising, nasty side effects that creep up on us like the ever-growing trade deficit, continuous and growing budget deficits, and of course, greater and greater overall debts. In light of that speech, let’s look at today’s news.



Why the Fed still matters - Jan. 23, 2009

The official said the FOMC would also work in conjunction with the Fed’s board of governors on decisions about the Fed’s balance sheet, which has ballooned in the past few months due to the various new lending programs.

So once the FOMC is ready to start raising rates again, it may want to see the balance shrink in size by having some of these programs wind down…..

It’s also important to have the Fed speaking with one voice on the need for action, rather than having Fed presidents roaming the country criticizing actions by the Fed’s governors.

“The fact that the board can do these things without consulting with the bank presidents doesn’t mean they should do it that way,” said David Wyss, chief economist for Standard & Poor’s. “They want to make sure everyone is reasonably informed, but also that there is a consensus that they’re doing it right.”

Who is FOMC? Well, here is one person who was just put on the board:

FRB: Reserve Bank Presidents — Dallas



Richard W. Fisher
President
Federal Reserve Bank of Dallas

Mr. Fisher took office on April 4, 2005, as the eleventh chief executive of the Eleventh District Federal Reserve Bank, at Dallas. In 2008, he serves as a voting member of the Federal Open Market Committee.

Mr. Fisher is former vice chairman of Kissinger McLarty Associates, a strategic advisory firm chaired by former Secretary of State Henry Kissinger.

Mr. Fisher began his career in 1975 at the private bank of Brown Brothers Harriman & Co., where he specialized in fixed income and foreign exchange markets. He became assistant to the Secretary of the Treasury during the Carter administration, working on issues related to the dollar crisis of 1978-79. He then returned to Brown Brothers to found their Texas operations in Dallas.

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