Central banks are given a certain level of independence so that they can be "neutral" and above politics. But I think we all know how worthless and empty "neutrality" is nowadays. The idea is that if the national legislature were in charge of monetary policy, they would do what is popular with the masses - spending lots of money on welfare programs causing inflation and soaring debt. Thus, central banks should have a certain degree of independence so that they aren't tempted by elections to manipulate the money supply unwisely. That being said, if the central bank is going to print just as much money as an elected legislature, then what is the point of central bank independence?
Simon isn't really responding to what I wrote. He's responding to his own disillusionment.
Praising Powell for resisting political tampering of the ineptitude in a specific crisis by the very administration and Trumpism that Simon supports is not an endorsement of every Fed policy.
It's a recognition of reality: preserving institutional independence when it matters buys time for a civilization to reform itself.
Revolutionary destruction doesn't fix corruption; it accelerates it.
Burke knew that. Buckley knew that. Real conservatives know that still.
Rage against the Fed if you must — but know the alternative isn't utopia. It's collapse. I've detailed in the past failures of the Fed and Powell himself.
Let me be absolutely clear: Trump’s demand for rate cuts has nothing to do with inflation data. It’s driven by:
Market pain under his own trade threats
His campaign’s obsession with boosting markets artificially
A Nixon-style hostility toward any Fed chair who won’t play politics
The idea that Powell “always lowers too late” is a lie easily debunked by actual history — in 2019, Powell cut rates three times, preemptively, under Trump’s own administration, despite unemployment being below 4%.
And now Trump wants Powell to do it again — to bail him out from the chaos he just caused in the bond markets with a blanket 10% tariff policy that’s already triggered capital flight and equity market panic."
Central banks are given a certain level of independence so that they can be "neutral" and above politics. But I think we all know how worthless and empty "neutrality" is nowadays. The idea is that if the national legislature were in charge of monetary policy, they would do what is popular with the masses - spending lots of money on welfare programs causing inflation and soaring debt. Thus, central banks should have a certain degree of independence so that they aren't tempted by elections to manipulate the money supply unwisely. That being said, if the central bank is going to print just as much money as an elected legislature, then what is the point of central bank independence?
End the Fed!
I agree with much of this, but you said that Powell is the dollar's last adult. He isn't.
Simon isn't really responding to what I wrote. He's responding to his own disillusionment.
Praising Powell for resisting political tampering of the ineptitude in a specific crisis by the very administration and Trumpism that Simon supports is not an endorsement of every Fed policy.
It's a recognition of reality: preserving institutional independence when it matters buys time for a civilization to reform itself.
Revolutionary destruction doesn't fix corruption; it accelerates it.
Burke knew that. Buckley knew that. Real conservatives know that still.
Rage against the Fed if you must — but know the alternative isn't utopia. It's collapse. I've detailed in the past failures of the Fed and Powell himself.
e.g.: https://croakycaiman.substack.com/p/you-cant-whine-your-way-to-lower?utm_source=publication-search
"🥚 The Monetary Illiteracy of It All
Let me be absolutely clear: Trump’s demand for rate cuts has nothing to do with inflation data. It’s driven by:
Market pain under his own trade threats
His campaign’s obsession with boosting markets artificially
A Nixon-style hostility toward any Fed chair who won’t play politics
The idea that Powell “always lowers too late” is a lie easily debunked by actual history — in 2019, Powell cut rates three times, preemptively, under Trump’s own administration, despite unemployment being below 4%.
And now Trump wants Powell to do it again — to bail him out from the chaos he just caused in the bond markets with a blanket 10% tariff policy that’s already triggered capital flight and equity market panic."