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Herman Cain dropped out of the Republican primary amindst at least four allegations of sexual harrassment, so of course Presidential Trump wants to appoint him to the Federal Reserve.
Also, and I think this is really really relevant: Herman Cain is a gold bug.
"A gold standard is to the moochers and looters in government what sunlight and garlic are to vampires."
wsj.com/articles/SB100…
"A gold standard is to the moochers and looters in government what sunlight and garlic are to vampires."
wsj.com/articles/SB100…
One of two things are true:
1. Herman Cain's previous advocacy for a hard-money gold-standard approach to the Fed has miraculously given way to adovcating monetary stimulus when unemployment is below 4%.
2. He's not going to implement the policy preferences of President Trump.
1. Herman Cain's previous advocacy for a hard-money gold-standard approach to the Fed has miraculously given way to adovcating monetary stimulus when unemployment is below 4%.
2. He's not going to implement the policy preferences of President Trump.
Cain's main claim to monetary policy expertise is that he chaired the board of directors of the Kansas Fed. That sounds impressive, until you understand the reality.
Regional Fed boards are usual local business bigwigs, who essentially do nothing.
Regional Fed boards are usual local business bigwigs, who essentially do nothing.
Regional Fed boards don't run the banks, their Presidents do.
They don't have a role in monetary policy; that's up to their president.
The staff brief them on the economy, but really it's a courtesy to make them feel important. (The staff joke about this as an unenviable chore)
They don't have a role in monetary policy; that's up to their president.
The staff brief them on the economy, but really it's a courtesy to make them feel important. (The staff joke about this as an unenviable chore)
The one important thing that regional Fed boards do is appoint their regional Fed presidents, subject to the approval of the Board of Governors in DC. Cain was on the Kansas board from 1992-96, and Fed Presidents are appointed in years ending in 1 or 6, so he never did this.
The regional Fed boards really are just there to provide the veneer of democratic legitimacy to an institution that's not really that democratic.
The board enjoy a free briefing from the regional bank staff, and the staff pretend to listen to the local bigwigs about the economy.
The board enjoy a free briefing from the regional bank staff, and the staff pretend to listen to the local bigwigs about the economy.
So when you hear that Herman Cain was chairman of the Kansas City Fed, realize that it meant turning up for coffee and muffins every few weeks, but not actually deciding anything or knowing anything. It's more like a Rotary club meeting than anything to do with monetary policy.
There's nothing wrong with appointing business or labor leaders to the Fed; professional economists haven't earned a monopoly.
But a history of extremist views or poor judgment should be disqualifying. Those are the terms on which we should assess Cain. Judge for yourself.
But a history of extremist views or poor judgment should be disqualifying. Those are the terms on which we should assess Cain. Judge for yourself.
Cain's history of talking about the Fed is going to get awk...
- Advocated gold standard
- Claimed that monetary policy was too easy in early 2011 (when unemployment was 9%)
- Argued that the Fed was overly-politicized at a time when it had no-one as partisan as Moore or Cain.
- Advocated gold standard
- Claimed that monetary policy was too easy in early 2011 (when unemployment was 9%)
- Argued that the Fed was overly-politicized at a time when it had no-one as partisan as Moore or Cain.
A few folks have asked me how serious Herman Cain is about his gold-buggery, or whether this is just an aside to impress his tea party friends.
He's serious enough that he wrote a whole darn book about it. And he kept advocating it even after the Republican primary.
He's serious enough that he wrote a whole darn book about it. And he kept advocating it even after the Republican primary.
