I take my hat off to Jerome H. Powell, Chair of The Federal Reserve (The Fed), who diligently answered questions from senators (yesterday) and representatives (today) about inflation and the economy in general.
Depravity Of Reason
The inquiries and remedies expected from the Fed by Congress are a grandiose confounding of cause and consequence, highlighting specifically why a country without a theory for humanity can never consistently deliver the burden of proof to improve human excellence. Quod Erat Demonstrandum.
Listening to the majority of questions asked, Congress appears not to understand how the authority of the Fed is a consequence of the legislation produced by Congress. Hence, if Congress is economically and financially dissatisfied with the state of the union, it –not the Fed– must alter the theory that delivers the proof of change for the better.
In a sports analogy, Congress has the same responsibility as FIFA, establishing the theory of soccer, defining the systems embedding that theory, and establishing the rules of soccer. Then, and only then, does gameplay start, and a referee is called in to enforce the rules that maintain the integrity and trust in the theory of the game being played.
The Fed, led by Jerome Powell, is like a soccer referee, unable to establish gameplay, unable to define the systems, or adjust the rules. The consequential actions of the Fed cannot make up for the gaping misfortunes of a causal laissez-faire theory endorsed by Congress.
Not the Fed, but Congress is responsible for the theory of economic gameplay and monetary policy we deploy. Demanding from the Fed to reduce inflation is like mid-game changing the size of one team’s goal in soccer to influence the preferred outcome and the winning team –so much for our free markets working so well.
We must change the cause of why human performance, amidst a massive Greenfield of opportunity to adapt to nature’s entropy, cannot deliver the economic performance commensurate with said opportunity. We have not implemented a theory that provides the burden of proof of human excellence, and thus the mountain of undesirable consequences will keep growing.