By Daily Bell Staff
Citi Is Worried About the Political Winds Blowing Against Yellen … A premature exit? … Citigroup Inc. on Tuesday posed an unspeakable question: will a political storm sweep Federal Reserve Chair Janet Yellen after the election that will force her to quit before her term ends in February 2018? -Bloomberg
Citi claims to be worried about the demise of Janet Yellen as Fed head but actually its top officials – the ones who report to London’s City – are more worried about the gradual unwinding of central banking itself.
We wrote yesterday about the unwinding of the Western – and US – political system. But central banking won’t last any longer than the current political “democracy” – and for the same reason. Too many people understand that like politics itself, central banking is not what it seems.
Yesterday, we didn’t fully explain the realities of the demise of politics. But elite concerns regarding the demise surely exist and surround central banking as well.
It is all a balancing act. Modern elites control the formal societal conversation and the Internet has corroded their control. They are fully aware by now of this corrosion and have taken steps to address it by centralizing Internet facilities via Facebook, Google, etc. and by expanding economic chaos and war worldwide.
But in the meantime, they struggle to control ‘Net fallout and to maintain the propaganda and “directed history” that they have used so successfully in past centuries.
Ideally, elite programs would be proactive, not reactive. They would be moving on their own terms and using their own timing. But we have observed for well over a decade that the Internet has challenged narratives and made control more difficult.
Elites intend to tear down current sociopolitical and economic structures on the way to creating world government. But that doesn’t mean they want the credibility of their memes to be rendered dysfunctional. Or at the very least they want to be in control of the process, which they are not now.
And thus they worry about Yellen, or at least give the appearance of doing so. And they worry about the current, global application of central banking. Ideally, the destruction of the current economic system is to be generated on their terms, not via uncontrollable third-parties.
Amid one of the most polarized U.S. elections in living memory, monetary policy has been thrust firmly into the campaign limelight. Republican nominee Donald Trump has attacked Yellen in highly personal terms, questioned the independence of the Fed, and suggested the Chair could be replaced with a partisan choice under a Trump administration …
“Calls to limit the power and monetary policy independence of the Fed are not new,” the analysts, led by Dana Peterson, wrote in a research note published this week. “However, recently intensified scrutiny of Fed activities and policy decisions, especially amid the 2016 election season, has prompted speculation that Fed Chair Yellen may exit her position and the board itself, sooner rather than later.”
What Citi is apparently worried about here is that Yellen and the Fed might lose “independence” and that central banking might end up being run by Congress. This kind of move might be driven by consumer anger and misery.
It is nonsense that those at the top of Citi have an concern about the Fed losing its independence because it doesn’t have any to begin with.Trump seems somewhat anti-Fed and that is all to the good, as the Fed fixes the price of money and as such must always create currency debasement. Under the Fed, the dollar has lost all but about two cents of its value.
But Trump doesn’t go nearly far enough. He treats the Fed as if it actually could be some sort of productive entity. But it cannot be so.
The Fed was created by bank financiers who wore masks on their way down to meet together at Jekyll Island. They called their project a “federal reserve” because people were against the concept.
The hid their identities and mislabeled the Federal Reserve because what they were doing was wrong. They were creating an engine of monetary and price inflation that over time would break the middle class, ruin the dollar and eventually destroy the US itself.
This would be the inevitable result of monetary price fixing – which is the real Fed’s real authority and power.
There are central banks like the Fed all over the world now. Many are not “independent” and really that doesn’t matter a bit. One merely needs to keep in mind that central banks are agencies of destruction to understand fully what has taken place.
In every nation and region where there is a central bank, the nation state and its citizens will eventually find survival difficult if not impossible. People will be given a choice. Either the cooperate to create a more fully globalized world or they and their families will face extinction.
This will not take place overnight, of course. And that is why Citi will continue to be concerned over central banking, and perhaps even Yellen. Citi needs central banking to maintain its undeserved dominance over the US economy. It values the independence of the Fed because the US political system has less power that way and the banking establishment controlled out of the City of London has more.
Conclusion: Ultimately, Citi’s priority is not fending off the leave-taking of Yellen or the ruin of central banking … but managing its demise and the presentation of the preferred solution: a global central bank. That’s its real concern and the rest in a sense is incidental.