Six mega-banks will take these ideologues’ narratives, supposing that climate-related financial risks exist. Using these narratives, the banks will practice deciding who to create money for and lend it to, and who to refuse to create money for and lend it to. Banks are the tools that the Fed uses to create money, producing inflation. Almost all the money that gets created gets created by banks; and all of that created money gets lent out by the banks.
The Fed will review the banks’ “analyses” and “engage with” the banks to build up their capacity to exercise this control. The Fed may publish publicly-available “insights,” but will remove information that would identify the banks and the targets of the Fed and banks’ control.
This exercise calls to mind the October 18, 2019 pandemic exercise Event 201. The simulation yielded several strong recommendations. In a pandemic, taxpayers should fund and governments should stockpile and control vaccines, therapeutics, and diagnostics. It was also found that governments should curb mis- and disinformation. Governments followed this playbook exactly during the 2020-2022 COVID-19 pandemic.
The Fed’s planned 2023 exercise isn’t innocent and isn’t advisory — it’s control.
Keep in mind that government bureaucrats are not consultants who can be hired or fired. Progressives have exploited this vulnerability to create permanent bureaucrats who stand in our way and don’t leave us alone until we pay off them and their cronies.
This administrative state has transitioned beyond formal rulemaking, issuing guidance to menace us and often leaving us guessing. For instance, the first director of the Consumer Financial Protection Bureau, Richard Cordray, said that the bureau wouldn’t issue any regulations defining exactly what actions or practices violate the bureau’s law. During COVID, health bureaucrats issued guidelines, which many state and local officials and other organizations enforced as law.
Such in-your-face coercion is making people start paying closer attention.
People have yet to grasp that the existence of government monopolies doesn’t mean these monopolies are necessary or even helpful. Such monopolies’ existence only shows that special interests got some politicians to grant them favors. Since then, no politicians have put an end to them.
In the case of the Fed, there is a solution. Government money manipulation is unnecessary. Private banks have in the past produced sound money, backed by 100% reserves. This meant that money had to be saved up before it could be lent; it couldn’t just be created out of thin air. Private money producers can do this again, producing value-conserving, constant-quantity gold money, or, ultimately, productive equity-based money.
Removing Fed socialism will remove the bank’s destabilizing stimuli and money inflation that have disincentivized individuals from saving and have brought more serious crises. Removing fractional reserves will eliminate the crises seen throughout the USA’s past because of unconstitutional fractional reserves — under the various precious metals standards and post-1971 paper money.
With the Fed swept into the dustbin of history, massive problems will no longer be denied or kicked down the road:
- Current total government spending of 38% of GDP (versus, through 1913, just 4% to 8% of GNP, and in the American Colonies just 1% to 2% of GNP) will no longer be possible by borrowing on future taxpayers’ back. Instead, constitutionally backing off, by honorably refusing to execute the unconstitutional administrative state and repealing it, will free individuals.
- Retirement income-support and medical payments will no longer have their contracted-on purchasing power stealthily eroded by Fed inflation. Instead, outgrowing entitlements will further free individuals.
- Government debts, which Progressive politicians have foisted on individuals, needn’t be left in place, leaving never-ending interest payments for the taxpayer. Instead, repudiation could — and should — end this shakedown. Future creditors would then shy away, further limiting the government’s ability to borrow more.
Governments operate through force. They can’t add value. Governments can only take more of our wealth and block us from creating more.
The best way to change governments is quickly and extensively. Push that bully out of the way, and build ourselves up to keep him out of the way.
The Fed can’t fix the climate. The Fed can’t even stop itself from enabling government growth and from enabling bank lending to problematic cronies, even including customer-shunned, living-dead zombie companies. One Great Depression and two Great Inflations are more than enough already.
We will take care of our own business much better by ourselves.
James Anthony is the author of The Constitution Needs a Good Party and rConstitution Papers, publishes rConstitution.us, and has written in The Federalist, American Thinker, American Greatness, Mises Institute, and Foundation for Economic Education. Mr. Anthony is an experienced chemical engineer with a master’s in mechanical engineering.
The views and opinions expressed in this commentary are those of the author and do not reflect the official position of the Daily Caller.