I went to the crossroad, fell down on my knees
I went to the crossroad, fell down on my knees
Asked the Lord above “have mercy, now save poor Bob, if you please”
– Robert Johnson, Cross Road Blues
Unelected Bureaucrat
Federal Reserve Chair Jerome Powell faces an unenviable task. He oversees tens of trillions of dollars yet earns a modest $190,000 annually—a stark contrast to the compensation of many CEOs. Nevertheless, he deems this salary fair.
Powell’s main responsibility is to influence the cost of credit, a critical role in a centrally planned economy. In a truly open market, where interest rates are shaped by willing borrowers and lenders, such a position would be unnecessary.
However, some positions appear to be even less appealing. For instance, Lael Brainard recently departed as Fed vice chair after just nine months, transitioning to the role of Director of the National Economic Council—another seemingly ineffective position.
With Brainard’s exit, a pressing question emerges: who will step into her shoes as the next Federal Reserve vice chair? To paraphrase a sentiment from the National Enquirer, “Enquiring minds want to know.”
The answer seems straightforward, but within the context of 2023 America, it becomes convoluted. Questions regarding the new vice chair’s identity pale in comparison to inquiries about their background.
What is their skin color? What about their gender, and how do they identify? Are they considered beneficiaries of systemic racism?
To clarify, the role of the vice chair is that of an unelected bureaucrat, appointed by the President of the United States and confirmed by the Senate. Factors such as qualifications appear to take a back seat in President Joe Biden’s nomination process.
Are You a Freak?
When White House press secretary Karine Jean-Pierre was recently questioned about Biden’s considerations for diversity in selecting a new Federal Reserve vice chair, the reporter seemed to imply this was a crucial criterion. Jean-Pierre’s self-assured response confirmed the expectation:
“The Cabinet is majority people of color for the first time in its history. The Cabinet is majority female for the first time in history. A majority of White House senior staff identify as female. Forty percent of White House senior staff belong to racially diverse communities, and a record seven assistants to the president are openly LGBTQ+.”
Jean-Pierre mentioned that the nomination would be forthcoming and added that the President “prides himself” on hiring minority candidates.
At Economic Prism, we strive for creative thinking paired with conservative personal practices. Unfortunately, in today’s environment—whether in education or corporate settings—adhering to traditional values often labels you as a “freak.” Are you among those labeled?
Frankly, the background or gender identity of the next Fed vice chair is of little concern to us. What truly matters is their courage—los cojones—to challenge Washington and the powerful bankers.
This individual should be bold enough to declare that the long-standing era of cheap credit is over and that caution in credit use is paramount going forward.
We envision a Fed chair dedicated to giving savers, wage earners, and pensioners a fair deal—one who holds debtors accountable and safeguards the dollar. Is that too much to ask?
State Sovereignty
Unfortunately, high standards like these would likely eliminate any prospective candidate from consideration. After all, no president would nominate someone who threatens the Federal government’s fiscal machinery.
Many Americans who are aware of the ongoing issues are growing increasingly frustrated with a system that seems rigged against them. The cumulative effect of inflation added to federal income tax feels like outright theft. Biden’s upcoming Fed vice chair nominee—regardless of race or gender—reflects a broader narrative.
Over the past 110 years, since the Federal Reserve’s inception and the federal income tax’s establishment in 1913, government overreach has become pervasive. As a result, many states are looking to lessen the federal government’s grip.
In regions like flyover country, where rebellious teenagers sport “Buck Fiden” stickers on their trucks, there’s a distinct aversion to Washington’s regulatory overreach. For instance, in Tennessee, the state government may turn down $1.8 billion in federal education funds.
The objective is to free local educational institutions from federal constraints and drive Washington’s interference out of the volunteer state’s classrooms. While this may sound like mere bravado, it has yet to happen.
This proposal follows the Tennessee Health Department’s rejection of federal grants for HIV prevention services. The state now assumes complete financial and administrative responsibility for these services.
Reducing reliance on the federal government, especially given the CDC’s subpar handling during the pandemic, is a vital move towards enhancing local autonomy and freedom. Federal funding frequently carries burdensome strings that impede state sovereignty.
The more states can detach from Washington’s influence, the less control it has over their affairs.
Cross Road Blues in the Time of Biden
When Robert Johnson fell to his knees at the crossroad, he was not just pleading for mercy; he had already struck a pact with the Devil, granting him the ability to create the soulful blues that made him legendary.
However, his fame came at a steep price, and he tragically met an early demise at the age of 27—consequently consigned to an eternal fate akin to Faust’s.
Legends, despite their dubious origins, often harbor significant global messages. Did Johnson truly make a deal with the Devil? We may never know. Yet, the essence of this legend teaches us a universal truth: you cannot obtain something for nothing.
While hard work, dedication, and calculated risks can lead to success, shortcuts, deceit, and malfeasance ultimately lead to dire consequences. Those who choose the latter path will discover that hell comes due.
Woodrow Wilson made his own Faustian bargain many years ago by signing the Federal Reserve Act into law. This single act set the nation on a trajectory toward eventual ruin, with nearly every president and legislator complying with the Fed since, with notable exceptions like JFK and Ron Paul.
Now, under Biden’s administration, the chaotic American landscape continues to ebb and flow.
“I may be a white boy, but I’m not stupid,” Biden remarked at a recent Black History event. “I know where the power is.”
Indeed, mercy and salvation remain elusive at the crossroads, and the union appears to be on a downward trajectory.
Yet, hope is not lost. For each individual, an essential question arises:
Are you accumulating silver, or are you simply singing the blues?
[Editor’s note: Are there potential threats from China against Taiwan? Are your finances prepared for unexpected turmoil? Answers to these pressing questions can be found in our exclusive Special Report, titled, “War in the Strait of Taiwan? How to Exploit the Trend of Escalating Conflict.” You can access a copy for less than a penny.]
Sincerely,
MN Gordon
for Economic Prism
Return from Cross Road Blues in the Time of Biden to Economic Prism
