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Frequent Contributor

Federal Reserve stuff

Hey folks it is time to pay attention to policy stuff as it will certainly influence your cash price.


Fo quite a while now there have been two vacancies on the fed board.


In January Obama nomminated Allan Landon.  From the wall street journal"

Mr. Landon served as chairman of the board and CEO of Bank of Hawaii Corp. from 2004 to 2010, after which he joined the University of Hawaii at Manoa’s law school as a lecturer. He has also worked at First American Corp. and Ernst & Young.

“Allan Landon has the proven experience, judgment and deep knowledge of the financial system to serve at the Federal Reserve during this important time for our economy,” Mr. Obama said in a statement. “He brings decades of leadership and expertise from various roles, particularly as a community banker. I’m confident that he will serve our country well,”


Good news is this guy is actually a banker. He has actually had boots on the ground and served in the trenches.  His education would make me believe he is Kensyian in Nature but with his real world experience he may not be all bad.


Yesterday we had the announcement of our second appointee.

A University of Michigan professor might be the next person appointed to serve on the Board of Governors of the Federal Reserve System.

President Obama said Monday that he would nominate Kathryn Dominguez, professor of public policy and economics, to serve on the board.

Dominguez, who joined the U-M faculty in 1997, also serves as a research associate at the National Bureau of Economic Research and will begin service as associate dean for academic affairs at the Ford School of Public Policy this fall.

"Professor Dominguez is a renowned scholar and teacher with a well-deserved reputation as one of the world's leading experts on global financial markets. I am pleased and proud that she's been invited to join the nation's top monetary policymaking body," U-M President Mark Schlissel said in a statement.

"Kathryn joins a long tradition of University of Michigan faculty lending their expertise at the highest levels of service in Washington, D.C., shaping public policy and strengthening communities."

Prior to her time at U-M, Dominguez taught at the Kennedy School of Government at Harvard. She has also taught at the Woodrow Wilson School of Public and International Affairs, London School of Economics and Goldman School of Public Policy at the University of California, Berkeley.

She worked as a research consultant for the Federal Reserve System, International Monetary Fund, World Bank and Bank for International Settlements.


Her credentials and her education tell me she is just another thinker. No real world experience just a bunch of policy papers that say the same old kensyian thought with new phraseiology that only obscures the truth and gives talking heads hours of air time to determine the true meaning.


Good thing for commodities is that she and Calamity Janet are in agreement that the Strong dollar is a headwind to a sustainable recovery.Of course thier wrong but farmers, er I mean growers. may get one more chance at prosperity.


Niether has been scheduled for senate hearings thier time may be a ways off. but the slant of the fed will stay the same.


Again with the current montra about the strong dollar we could easily see a 20% retractment in the dollar yet this fall if that happens watch for 5 dollar corn.



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3 Replies
Honored Advisor

Re: Federal Reserve stuff

You been reading about us growers,  thats great.......... 


It looks to me that he has no choice but to pick through "academia".  After the 2008 bailouts and the continued printing of cash, the banking system(with that kind of experience) is international in loyalty and scope.  That seems to render that community either distanced from US Monitary policy or even advisarial to it.


Problem is academics tend to repeat unapplicable utopian theories.  But the question is at this point is "what does the job call for?"


It appears that new flowery redundant wording of the same action is the only qualification we are looking for..... We are scared of any other policy....


US Government is Greece West...???? 

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Senior Contributor

Re: Federal Reserve stuff

Don't agree SW. If one could make out a financial statement on the assets and liabilities of the USofA I suspect the assets would far exceed the liabilities of the country. Simply government owned real estate would be a huge number. Military assets would be huge. Oil laden properties and mineral deposits would also be huge.


The main reason we have debt is because the people are unwilling to pay the tax burden. Sure we have budget shortfall but we have had a few decades of additional tax incentives because some politicians have sold tax incentives with the promise of increased revenues. While by nature a growing economy should produce more revenues but the incentive tax breaks exceed the additional revenues. Plus you must realize that those with the tax benefits prefer to pay even less taxes. Lowering tax rates does not stimulate addition tax revenues. For example if your 30% TAX rate was lowered to 20% would you happily pay that rate or would you prefer to pay an even lower rate? Some would prefer to pay nothing than something.

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Honored Advisor

Re: Federal Reserve stuff

Yea don that is your axe........ you grind it regularly.    The tax cheats have put us in this position..... according to okdon.  


But the question is what are the choices, in this situation, for the federal reserve, when it comes to monitary policy????


Especially since the administration and the congress are neither one willing to take the political heat for following your plan of raising taxes to pay the debt.  And neither are either the administration or the congress willing to say no to the spending levels your taxpayers demand..


We are Greece West...


If you think used military equipment is worth a lot your wrong..... And how much will a national park sell for at a sale....??

I would suspect the National balance sheet is heavily inflated if it balances.  And who is going to buy it to help us pay the debt.

Debt to asset ratio means nothing if the cash flow to service the debt doesn't exist. That is why interest rate change is not happening.

We can talk and relabel, but in reality the fed cannot let interest go up.




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