Far from being a reduction in the central bank's role (as posited in that previous article), this new paradigm actually amounts to a big expansion of central bank power -- from merely controlling monetary policy (interest rates and money supply) to grabbing control of fiscal policy as well (spending and taxes). In effect, control of fiscal policy will be taken away from the elected Congress, and put into the hands of the Fed/central bank.
The way our system has been operating, the elected Congress controls spending and taxes (fiscal policy), and the independent (privately owned) Fed controls short term interest rates and thus the money supply (monetary policy).
What is being proposed is a merger of monetary and fiscal policy, with both under control of the central bank. This is exactly what the European Union mavens have proposed for Europe following the Greek crisis -- the need for the ECB/European Central Bank to have control over the budgets and tax policies of member countries. It's a huge power grab by the ECB banksters. Not only have countries lost their independent currencies, next they will lose all control over how they are taxed and where the money is spent.
Like the US Federal Reserve, the European ECB is cartel of privately owned banks. But unlike the US, the European Commission members are appointed, not elected by the people. Rule by the EU is rule by unelected bureaucrats. The US still has an elected Congress, but they will increasingly be stripped of power. Americans will pay a tax rate dictated by the central bank, and the budget for how the money is spent will similarly be dictated by the central bank.
Once this stage of the power grab is in place and operating, the next step will be goodbye US dollar system, hello SDR. But by merging monetary and fiscal policies under the central bank, perhaps the day of reckoning (SDR) can be postponed? We know they eventually want the SDR, but they may want to maintain the dollar system for now, and this may be a stalling tactic to hold the dollar system together for some additional years.
AI
