By SchiffGold | Source
If Donald Trump has his way and recent reports are accurate, Federal Reserve Chair Jerome Powell is considering stepping down from his position. While extremely rare, Fed Chairs resigning before the end of their term isn’t entirely unheard of. Powell’s obligations would ordinarily extend to May 2026.
But if he abdicates, Trump would replace him with an ultra-dove who is committed to aggressively cutting short-term interest rates, delivering the cheap money he craves. This new dove will crush the dollar, eviscerate savers, and send long-term interest rates soaring much higher.
Markets are watching Powell closely, and pundits are speculating on who might replace him in the extraordinary event that he decides to leave the Fed. But even if he doesn’t resign, the end result of central bankers tinkering with the economy is always net inflationary. Whether you’re talking about the Fed or the Bank of Japan, the end result on a long enough timeline is always an expanded money supply, a currency crisis, and a reset driven by economic catastrophe.
Central Bankers are why the dollar has dropped off a cliff in slow motion, losing over 96% of its value since 1913 when the Federal Reserve was created. Some commenters claim that this doesn’t matter, because standards of living are so much higher today. But that claim ignores the fact that inflation always rewards speculators, bankers, and insiders while punishing savers.
In today’s low rate-addicted economy, 5% and up is considered being on the “high” end. In a self-correcting free market, they would be drastically higher. Forcing low interest rates on the economy is like trying to keep a greased beach ball underwater, pushing it deeper and deeper as it continues inflating with even more air.
You’re not in control, and you never were. When you finally lose your grip, it rockets out of the surface of the pool even harder and faster.
US Consumer Price Index, 1913 to Present
SOURCE: FRED®/US Bureau of Labor Statistics
What makes the dollar different is its exorbitant privilege as the world reserve currency, and our ability to force that reality economically and geopolitically. But that privilege has been ending for many years in slow motion, and now, economic policies like capricious tariffs and “Big, Beautiful Bills” are accelerating its demise. Touted as a form of economic stimulus, Trump’s economic policies mean higher deficits.
Debt skyrockets, interest rates remain too low, deficits remain sky-high, growth remains low, and the cycle receives more and more fuel until something inevitably finally breaks the market’s trust. That’s when it all falls apart. Both Trump’s fiscal policy and Federal Reserve monetary policy, with or without Powell, are partners in crime for an economic crash.
As Peter Schiff said on The Peter Schiff Show:
“We are not changing course, we are headed on a course to a fiscal disaster. And we’re not veering from that course…we’re just stepping on the gas.”
Claims that the BBB’s spending will be magically funded by tariff revenues are nonsense. Tariffs will reduce demand for those goods, meaning the real revenue collected is always drastically lower than what hopeful projections like to pretend. Companies aren’t all going to pack up and move their manufacturing to the US, they’ll just stop selling to Americans. At absolute best, any companies that do move their manufacturing will take years, compromising Trump’s political dependence on instant results.
Despite a surprisingly good fiscal quarter for the US Government, the BBB makes it unlikely to last. We can rely on both Republican and Democrat administrations to be much better spenders than savers. When the government spends, it’s always with someone else’s money, and over 14% of that spending is just interest on the debt.
With or without the fiscal policies, inflation is all central bankers really know how to do. Sometimes they inflate slowly, at what they claim is the ideal 2% level, and sometimes they inflate a lot all at once, like in response to the 2008 financial crisis and COVID. The impact of monetary policy on ordinary Americans isn’t apparent right away. But eventually, the devastating effects of inflation are felt in the form of higher prices for everything people need to survive.
In the meantime we’re left with a boom and bust cycle where central bankers decide the “right time” to engineer a recession to try and stave off an all-out collapse. They always return to low interest rates and money printing because without them, the easy money-addicted system would collapse.
If Powell remains the Fed Chair, rate cuts will still come. It’s a matter of If, not When. But if he resigns, and is replaced with a dove hand-picked by Trump, inflation won’t just start to boil over —it will rocket into the stratosphere.
Raksha said: “So in short : The Fed is just the US central bank, most coutries have their own, and there are several layers of financial syphonage above the FED, at the top is the BIS. The FED is just a symptom, it is far from being the main culprit.
But we are ine agreement though, we are just arguing on the technicities.”
Vox Publius says: Well, to cut to the chase, the main [financial] culprit is the GLOBAL Federal Reserve system; of which the U.S. Federal Reserve is a participant.
Vox Publius says: If other countries want to connect & be controlled ultimately by BIS, then so be it.
Vox Publius says: But for OUR country, the United States Republic, we need to sever ALL monetary ties with anyone EXCEPT FOR THE UNITED STATES TREASURY.
Vox Publius says: The current Federal Reserve Notes (ie. GW on the $1, TJ on the $2, AL on the $5, AH on the $10, AJ on the $20, UG on the $50, BF on the $100, and so forth..) are 1) DEBT INSTRUMENTS (ie. IOU’s) and 2) NOT WHOLLY OWNED NOR FUNDED BY THE U.S.A.
Raksha said: So in short : The Fed is just the US central bank,…
Vox Publius says: No it’s not ‘just the US central bank’. Think of it as a ‘regional’ bank in the CENTRALized GLOBAL (BIS) BANKING SYSTEM.
…most coutries have their own, and there are several layers of financial syphonage above the FED, at the top is the BIS. The FED is just a symptom, it is far from being the main culprit.
Vox Publius says: If the U.S. Republic ELIMINATED the Federal Reserve and cut ALL ties to the GLOBALLY-fed BIS system, we’d be once again a SOVEREIGN nation, free of the ‘culprit’, like the U.S. Republic was before 1913 (ie. Federal Reserve Act enacted <— btw, passed during Congress’ Christmas recess that year…hmmm…).
Raksha said: "But we are ine agreement though, we are just arguing on the technicities.”
Vox Publius says: I wish they were just ’technicalities’. They’re not. We have NO say nor authority on who & how BIS is run. But by printing our OWN, U.S. Treasury monies, backed by UNITED STATED REPUBLIC-owned gold/silver, we would ELIMINATE the ‘culprit’ that way.
Vox Publius says: In fact, that severing from the current U.S. Dollar (& U.S. Treasuries/Bonds) is EXACTLY what the BRICS nations have in mind, along with eliminating the PetroDollar as being the ONLY means of energy trade.
~
I would hope that, when Powell resigns from the Fed chairmanship, Prez Trump will appoint someone the likes of Secs. McMahon & Zeldin, or R. Vought & K. Lake.
And with the same ultimate goal as theirs, namely:
–> The eventual ELIMINATION of the Federal Reserve <–
I.E. SHUTTING THE EFFING FED DOWN !!
RESCIND THE UNCONSTITUTIONAL FEDERAL RESERVE ACT OF 1913 !!
And return to Hamilton's ORIGINAL U.S. Banking plan, with the creation of a…
THIRD BANK OF THE (WE THE PEOPLE) UNITED STATES
…that is OWNED by, for & of THE AMERICAN PEOPLE !!!
…with gold-backed, non-usury, non-digital 'Republic of the United States' U.S. Treasury-issued bank notes.
Past-due time to cut off the oxygen from the Babylonian, Khazarian, Globalist S@t@n1c bankers of the past Millenia!….
Do it, Mr. President !
~
A chairman of the FED doesn’t have the power to end the FED, so it really doesn’t matter who is in that position. Btw, the FED is far from being the only mechanism for this monetary syphon. Nothing will change before the Sovereign Debt Collapse. Good thing is, the more chaotic it gets, the closer we are to real changes. And real changes are far more fundamental and systemic than the FED.
“A chairman of the FED doesn’t have the power to end the FED, so it really doesn’t matter who is in that position.”
Maybe yes, but a Fed Chair can SABOTAGE & easily CRIPPLE the Fed: eg. schedule NO Fed meetings, CANCEL the $2.5 billion Fed structures rehab, VETO all regional Fed Reserve new hires.
Meanwhile, Prez Trump & Treasury Secretary Bessent can begin to plan & build the Fed replacement (methinks Russ Vought has pent-up ideas on how to execute already..)
————
“Btw, the FED is far from being the only mechanism for this monetary syphon..”
No, but it is the PRIMARY, REQUIRED mechanism for ALL monetary siphoning…
Just cut the HEAD off the Beast….
~
Well, my reply was absorbed by Big Lil’s HS. I am too lazy to be thorough again.
So in short : The Fed is just the US central bank, most coutries have their own, and there are several layers of financial syphonage above the FED, at the top is the BIS. The FED is just a symptom, it is far from being the main culprit.
But we are ine agreement though, we are just arguing on the technicities.
🧼🧽🪣
Raksha, my kingdom for a Hoover vacuum emoji!
Now my HS is forced to erase perfectly good replies, with soap and bucket, not even a mop 😭
What a meddler she is, erasing anyone’s reply, no explanation 😁🤭
…You’re welcome! ♥️💎😋
It should be more common knowledge that such central banks are essentially privately owned institutions (except perhaps in Russia), but I guess they couldn’t sustain that position globally for long if that WAS common knowledge, right?
They basically DID to value and trade what AOL failed to do to the internet; but they can’t buy off or threaten everyone who becomes aware and has free will, especially after a certain critical mass.
“Those who amassed abundance trading scarcity shall have it paid back in kind.” There’s some Saturn prowess we’d like to have the eyes to see.
Actually, only the FED is privately owned, and only partially.
I’ll see your 10 and raise you 20.
Not only they are essentially privately owned, country governments are their clients. Not if you ask AI though.
To expand on ” a surprisingly good fiscal quarter for the US Government,”. That was a $27 Billion SURPLUS for June. The first surplus in over 20 years. Tariffs dollars go straight to the Treasury not to any central bank. Hold up, let em cook. 🙂
Economic troubles seem assured – even if politicians miraculously decided to get serious about reducing the deficit, it seems too late. Is there any path that doesn’t lead to a crisis?