(Before It's News)
Sir, Wolfgang Münchau writes that the letter from Patrick McHenry, the vice-chairman of the US House of Representatives to Janet Yellen, the chair of the Federal “questioned the right of the chair of the Federal Reserve to negotiate financial stability rules “among global bureaucrats in foreign lands without . . . the authority to do so.” “Central bank independence is losing its lustre
” February 20.
That is a perfectly valid questions that the Fed, if everything was as it should be, should be able to answer with ease in a very straightforward way.
But, McHenry’ letter or question during the interpellation would have been so much firmer and direct to the point if he had asked:
Where did the Federal Reserve obtain the right to, with risk weighted capital requirements for banks, so fundamentally distort the allocation of bank credit to the real economy in America?
Followed up with: Where did the Federal Reserve obtain the right to come up with risk weights such as: Sovereign 0%, AAA-risktocracy 20%, residential houses 35%, We the People, like unrated SMEs and entrepreneurs 100%, and below BB-rated 150%?
Followed up with: Who authorized you to impose risk aversion in the Home of the Brave?
Followed up with: Sovereign 0%, We the People 100%: Who authorized you to impose such statism on the Land of the Free?