Last week the Senate failed to confirm the nomination of Judy Shelton as a member of the Board of The Federal Reserve. Some thoughts and observations.

If it had done so, and once she was occupying a currently vacant seat on the board, we might reasonably have expected some fireworks.

As I said in a previous article...

"If someone with Ms. Shelton's views were to be sitting on the Federal Reserve Board of Governors, that individual would have a platform to call attention to the facts at hand.  A more public recognition of those facts could change measurably the current perception of the Fed. In addition, it might also signal the possible end of the central bank." (see The Federal Reserve Vs Judy Shelton And Gold)

It is curiously interesting that nearly every article in mainstream media that I have read about Ms. Shelton and her nomination includes a reference to her views on gold. Each reference is made in derision of Ms. Shelton's views and attempts to discredit her by casting aspersions her way.

The apparent inference is that someone who gives even cursory lip service to a gold standard is unqualified to serve on the Federal Reserve Board. There is more to it than that.

Why did former Chairs and members of the Federal Reserve Board feel it necessary to issue a formal letter criticizing Judy Shelton and mentioning specifically her views on gold?

Below are three statements from that letter...

1)" Ms. Shelton's views are so extreme and ill-considered as to be an unnecessary distraction from the tasks at hand..."

2)" Ms. Shelton has a decades-long record of writings and statements that call into question her fitness for a spot on the Fed's Board of Governors". 

3)" She has advocated for a return to the gold standard; she has questioned the need for federal deposit insurance; she has even questioned the need for a central bank at all."  

What makes Ms. Shelton's views "so extreme and ill-considered" is that they fly in the face of more than one hundred years of failed banking practices and money manipulation.

Intentional inflation created by the Fed has reduced the purchasing power of the US dollar by ninety-nine percent. Attempts to manage the stages of the economic cycle have caused  The Great Depression, The Great Recession, and numerous other bouts with financial end economic collapse.

The Federal Reserve is a private institution that fosters an environment for unlimited money creation and perpetual lending. Ms. Shelton represented a threat to business as usual at the Fed.

Hence, it is not surprising to see the concerted effort to derail her nomination. Nor should it be a surprise that her nomination wasn't confirmed.

JANET YELLEN - SHE'S BACK 

The news of Judy Shelton's non-confirmation vote came shortly after President-elect(?) Biden announced his choice for Treasury Secretary - Janet Yellen.

Surprise, surprise! A former board chair at the Federal Reserve, Ms. Yellen resigned at the end of her term as board chair at the Federal Reserve rather than serve out the remainder of her appointed term as simply another board member.

She is also famous for her comments in 2017 assuring us that "another financial crisis is unlikely in our lifetime because of the measures the Fed has taken". Thank goodness for that!

Be assured that if and when Janet Yellen is confirmed and begins to act in her new capacity as Secretary of the Treasury, we will be treated to an obvious confluence of "The Fed" and "The Feds".

Monetary policy will never be the same again. Well, it will be business as expected; at least for a while. After the collapse, and further erosion of our economic freedom, things will get downright ugly. (also see: The Fed Always Does Its Job)