In re: Trump DoJ attack on Jerome Powell
Look, here's the thing about money: it isn't real. It's all about belief and trust. I've been invested in equities and money markets for over 40 years. I've ridden the ups and downs. Money means what people say it means, neither more nor less. Alfred North Whitehead coined the "fallacy of misplaced concreteness." He was referring to the reification of abstract concepts. That fallacy applies to money and property (libertarians notwithstanding). So, the big reason that Trump's attacks on Powell and the Fed are dangerous is because they will call attention to the fallacy that the Fed and its objects of concern are concrete. They aren't. The dollar emperor has no clothes. Once the world stops believing in the dollar, it will cease to be the world's reserve currency. The treasury will have to stop minting money with computer key clicks. The borrowing rate for the national debt will increase. International investors will turn to the euro. And ...