Judy Shelton Blocked From Fed? Not So Fast…
Posted November 20, 2020
“Shelton is a demonstrably unqualified partisan quack who has no business working at the world’s most powerful central bank,” NBC correspondent Ken Dilanian writes. “Her nomination has been condemned by 100’s of economists and Fed alumni, including prominent Republicans and 7 Nobel laureates.”
It’s been said condemnation from your enemies is a better indicator of an ally than praise from your friends. (Hatred, after all, is louder and travels faster than admiration.) We consider Shelton, for that reason and many others, an ally in the fight against fiscal psychopathy. Of course, this has been an uphill battle for decades. Battling those one-trick-ponies who merely hurl insults and appeal to authority is exhausting only because they’ve also got the backing of the mass media megaphone.
"Her ideas are so wacky and outdated,” Oregon Sen. Ron Wyden says, “giving her authority over the dollar would be like putting a medieval barber in charge of the CDC." Echoing this sentiment, a headline from Slate this week reads: “Kamala Harris Rushes Back to Washington to Block Trump From Putting a Crank on the Fed Board.” Harris explained her vote in a tweet: “We need a reliable Federal Reserve to help manage our economy in this pandemic. Judy Shelton’s dangerous ideas would devastate our economy, and her lack of commitment to using the full force of the Fed to provide COVID-19 relief is unacceptable. I voted no on her nomination.”
Of course, as one commenter pointed out, by “reliable” the MMT/UBI/Green New Deal advocates tend to mean “obedient”: “Now more than ever,” the commenter points out, “we need dissenting voices at the Fed -- which, mind you, is supposed to be an OBJECTIVE entity. When inflation runs rampant due to MMT & the USD loses reserve status, we'll remember how ‘dangerous’ her ideas were.”
And yet, despite all of the hemming, hawing, chatters and blathering...
Don’t Count Shelton Out Yet
Shelton, as you know, is an outspoken Fed critic and supporter of the gold standard. Which is precisely why she’s drawn such intense opposition from Democrats and Republicans alike. On Tuesday, the path to her confirmation was blocked, at least temporarily. With two Republican Senators in quarantine, Harris rushed in to cast a “no” vote. Afterwards, McConnell took steps to enable a revote when the Republicans emerge from their quarantine holes.
But, much like the election results, that didn’t stop the mainstream press from pronouncing her nomination dead in the water. The aforementioned Slate article called Shelton a “crank who wants to return to the gold standard and get rid of deposit insurance.” NPR claimed she was unfit for the job due to “her unorthodox support for the gold standard, a theory long discarded by mainstream economists.” And NBC News, in lockstep fashion, also said Shelton is “known for her unorthodox support for the gold standard, an archaic policy concept to which no developed economies today adhere.”
Gold and silver bugs have heard it all before. One criticism from a rando anti-goldbug rings as hollow as it does familiar: Gold bugs, he says, “stake a major chunk of their life savings speculating on these intrinsically worthless rocks, instead of investing in productive assets –- it doesn't make any sense once the veneer of supportive peer-reviewed evidence falls away.” (The peer-reviewing academics, no surprise, of which 98% are trained in the dark arts of Keynesianism, agree.)
To be sure, it isn’t that our politicians and mainstream pundits understand the inner intricacies of the argument at hand -- they’ve merely as usual, outsourced their brains to special interest groups. And no special interest group wields more power and influence than the one which prints the money. Gold standard advocates understand that a world of freedom and prosperity requires free and sound money. The simple fact that sound money principles are so viciously hated among policymakers and economists -- the Old Guard -- is probably the biggest, fattest contrarian signal that we need them now more than ever.
It’s by no mistake gold has become the single most important wealth preservation tool for banks, nations, and individuals around the world, and all throughout history. It’s no surprise, either, policymakers are quick to ignore this fact. Gold undermines their efforts to shape the economy as they see fit. And, for that reason, you’re not entirely defenseless.
It’s Simple: Do What They Do, Not What They Say
Warren Buffett is only the first gold hater to flip to meandering gold buggery. Expect more to come. And many of our most astute readers will be prepared long before the Big Flip occurs -- when the pundits suffocate under the weight of all those eggs on their faces. We won’t beat a dead horse here. If you’re an astute reader of our daily missives, you already know the spiel.
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Managing editor, Laissez Faire Today