Trump The Fed — Base the Federal Reserve on the Constitution

After wild swings in the markets, the Federal Reserve and its failed policies have once again come under scrutiny from President Trump.

Former President Trump on Thursday said, “I feel the president should have at least a say” regarding the Fed’s interest rate policy, and said that he has a better idea of how to grow an economy than many people serving on the Federal Reserve Board. 

Vice President Harris disagrees, and replied on Saturday, saying, “The Fed is an independent entity and as President I would never interfere in the decisions that the Fed makes."

President Trump’s V.P candidate, J.D. Vance, also chimed in on Sunday on CNN, and said that he agrees with President Trump, and went on to say that no unelected bureaucracy should be making major decisions that affect the lives of every American, whether on war, monetary policy, or interest rates. 

Absolutely correct!

There are basic steps President Trump and Congress can take to make the Federal Reserve comply with our Constitution.

The Federal Reserve’s now infamous bailout regime began in 1989 under former JP Morgan banker, and Ayn Rand lover, Alan Greenspan. Greenspan’s bailout program created the LTCM crisis and the dot.com bubble crash of the 90s. 

By the 2008 financial crash, Presidents Bush 43 and Obama gave full political support to the hyperinflationary bailout regime that ensued, exploding the Fed’s balance sheet by $10 trillion in speculative paper, while it also monetized the accelerating federal debt by another $13 trillion. That’s $23 trillion in bailouts, as a conservative estimate, all to the banks, bankers, and global corporations, while the average American didn’t even get a t-shirt, but did get mass inflation in the U.S. physical economy, especially in housing, education, healthcare, and energy. 

And nothing has changed, because “everyone agrees” the Federal Reserve needs to be independent. What collective stupidity!

The Federal Reserve has always undermined U.S. industrial production, while favoring the financialization and de-industrialization of the economy. The notorious agendas of controlled disintegration and deindustrialization had become the unofficial mandates of the Federal Reserve beginning no later than Aug. 15, 1971, when Nixon ended the gold-based reserve system.

In 1913 President Woodrow Wilson created the Federal Reserve based on the British central banking model to serve as a critical control point for international financial corporations, and to undermine the U.S. and its growing industrial superiority. What interests the British lost in the American civil war, they recouped with the creation of the Fed.

The central banking system of the Fed is premised on increasing U.S. debt, largely through forever wars, and then monetizing that ever-expanding federal debt by printing money. The intended effect is to loot the American industrial base and the American workers, first by deviating lending away from industry and towards quick gains in speculation, and then via real inflation and economic depression, all while increasing Wall Street’s speculative profits.  

For example, the Federal Reserve monetized the massive amount of WWI-issued federal debt and helped launch the 1920’s roaring financial bubble, which famously crashed in 1929. 

To see the destructive countervailing trends of this agenda, measure the collapse in the U.S. trade surplus, which had historically risen from 1870 to 1920, against the rise in American income taxes beginning with the end of World War I in 1918. By 1971, seven years into the Vietnam war, the historic trade surplus had finally turned into a deficit (where it has stayed since), and income taxes were sky high.

Hence its no surprise why Kamala Harris believes the Federal Reserve should have its independence.

Shut Down this Racket

Promethean Action agrees with President Trump and Sen. Vance, and we believe we should go even further and turn the Federal Reserve into what Alexander Hamilton and Abraham Lincoln developed as a system of National Banking, a system which prioritizes loans to industry and production, and instead of expanding federal debt, extinguishes it.

There are basic steps that can bring the Fed to heel under our Constitutional system.

As our Constitution says, 

“Section 1: Congress

“All legislative Powers herein granted shall be vested in a Congress of the United States, which shall consist of a Senate and House of Representatives.

“Section 8: Powers of Congress

“The Congress shall have Power:

“To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;...

“To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;”

Our Constitution has vested these powers in Congress, and in Congress alone to create and regulate the currency, and by restating the Preamble, the Constitution gives emphasis that such powers are intended “to provide for the common defence and general welfare.” By these Constitutional powers, Congress can reign in the reckless Federal Reserve system and give the American people a true republic.

The Federal Reserve Board, prior to 1935, included the U.S. Treasury Secretary and the Comptroller of the Currency. These positions gave the President direct voting representation on the Board of Governors, and new reforms can give the President a direct seat, with the Treasury Secretary as his proxy. The President also appoints all seven of the current Board of Governors, though their terms are currently for fourteen years, making the unelected and Wall Street-tied bureaucrats more enduring than our elected leadership. This can easily be changed by working with Congress, and amending the federal legislation that creates the Federal Reserve. 

The Congress should also reenact Glass-Steagall legislation, and restrict commercial banking activity to the real economy, while prioritizing the commercial banks under the new Federal Reserve system.

The current governors are also all academic economists or attorneys, all of whom have zero experience with industry, mining, building, farming, or manufacturing, i.e. growing the actual economy!

The President, with the Congress, can establish new shorter term limits, and also mandate that vital areas of the U.S. economy, like energy, manufacturing, essential technologies, key materials like steel production and rare earth elements, i.e. areas that are critical to our national security as well as our domestic economy, are represented on the board by leaders in these industries.

There is no reason the Federal Reserve cannot both service the banking industry as a national clearinghouse for financial transactions, as well as provide loans to critical areas of industry, technology, and manufacturing, via the twelve regional Fed banks in partnership with the private banking sector. 

Doing so would be entirely Constitutional.

As we rebuild our export levels and restore the trade surplus in combination with Trump’s system of protective tariffs, we can reestablish the gold-reserve system that stabilized global markets after World War Two, ending the era of “globalization,” and return to a system of sovereign nations.