Larry Summers Accuses Dudley of "Trump Derangement Syndrome"

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Larry Summers blasts Bill Dudley's column yesterday in which Dudley proclaimed the "Fed Shouldn’t Enable Donald Trump".

Yesterday, former New York Fed president William Dudley wrote a Bloomberg Op-Ed calling Trump’s Reelection a "Threat to the U.S. and Global Economy"

Today, former Fed official Larry Summers blasted Dudley.

Worst Case of Trump Derangement in the Financial World

Least Responsible Statement in Decades

MarketWatch reports Lawrence Summers slams former top Fed official Dudley for essay on Trump

The fallout from former New York Fed President William Dudley’s op-ed on President Donald Trump continued Wednesday with former Treasury Secretary Lawrence Summers saying the column “might be the least-responsible statement by a former financial official in decades.”

Adam Posen, the president of the Peterson Institute for International Economics, and a former central banker at the Bank of England, said Dudley’s column was “horribly mistaken.” “It feeds conspiracy and it was totally irresponsible to talk that way,” he said. Fed officials will likely react by circling the wagons and become disciplined in their speeches, Posen said.

Minneapolis Fed President Neel Kashkari, in an interview with NPR prior to Dudley’s essay, said that when a central bank plays politics “it leads to really bad outcomes over the long run for the economy.

I have been accused of TDS as well. The charge is laughable. I have been an anti-war, free-trade advocate forever. My blasts of Trump have generally been in those areas.

On the positive side, Trump made two good choices for the Supreme Court That's something I highly doubt would have happened had Hillary won. And I also believe she is an even bigger warmonger than Trump.

Hillary was the "genius" behind the assassination of Muammar Al Gaddafi with disastrous consequences for Libya. She supported a no fly zone over Syria which could have led to confrontation with Russia, and she had the backing of John McCain, another rabid warmonger.

Clueless Fed, Clueless Trump

Trump repeated his claim today that the Fed is clueless.

Trump is correct. The Fed blew three consecutive economic bubbles. The third one has not popped yet.

But the one thing worse than having an independent body set monetary policy is having a government strongman take control.

History shows that bad things happen when the latter occurs. The result is often hyperinflation.

Get Rid of the Wizards

I propose we end the Fed and have a 100% gold-backed dollar.

The market can set interest rates, not a group of economic wizards, nor the President, nor Congress.

Mike "Mish" Shedlock

Comments (20)
No. 1-12
Fulgurite
Fulgurite

The "TDS" accusation from the die-hard Trump supporters is just as primitive as the "you're a nazi" from the left.

It illustrates how society is becoming more and more polarised by people who are either too stupid or entrenched in their political dogmas to rationally look at the facts and debate accordingly.

Tony Bennett
Tony Bennett

That's nice, Larry

Now, about that photo of you and Epstein ...

Webej
Webej

The MSM should be on alert. Meddling in our elections. But then by an agency which has actual effects.

The presidential election cycle has the strongest correlation with recessions/booms of any identifiable variable.

2banana
2banana

Please name all the wars Trump has started in the last three years as POTUS.

Heck, he doesn't even brag he is good at killing people.

"And I also believe she is an even bigger warmonger than Trump."

Matt3
Matt3

On a point Mish made, why can't short term rates be set by the market? This does seem like the best way as the Fed isn't very good at it and politicians surely wouldn't be any better. Mish, can you point to to something on how this might work? with or without 100% gold backing?

sunny129
sunny129

'History shows that bad things happen when the latter occurs. The result is often hyperinflation.'

Every one is howling that how that HYPER INFLATION is on the way, after the next accomodative policies of Fed=+CBERs

HOW?

BOJ is trying for the same goal just for the 'inflation' over 2 decades! ECB same since 2015 or even before. But now they have 1& trillions NIRP!

Fed is trying boost the inflation since '09 and going no where!

Public debt may be can can be kicked down with more QEs +ZRP

But who is address the PRIVATE DEBT? DEBT jubilee!? Student loans 1.5 T, Corp debt 1.3 T, Household debt over 1 T, auto loans 1 !

First de-leveraging DEFLATION first and then may be stagflation or hyper inflation NOT before D2!

caradoc-again
caradoc-again

It's none too wise to argue a non-elected body should interfere in any way to favour or hinder any Presidential candidate. What right does the Fed have to do that?

Not satisfied with fooling around with the price of money should they now vet Presidents?

Where will this idiocy stop?

Dudley should have played the policies, not the man. As soon as a name is mentioned it goes too far in this case. If he'd played the policies, not the man, everyone would have understood without risking any Fed independence there might still be.

Casual_Observer
Casual_Observer

I wouldn't trust the market to set interest rates anymore in the era of Putin, Kim Jong Un and others. Hackers can easily be employed to manipulate open markets with fake money from central banks in other countries. Mish you may want to go back to early 1970s but for a whole host of reasons that world no longer exists. I would be interested to hear your proposal on how the market would set interest rates. Do you think it wouldn't happen electronically ?

Blurtman
Blurtman

FED will f*@k you up, Homes! They’re packing.

RonJ
RonJ

"I propose we end the Fed and have a 100% gold-backed dollar."

BOE's Carney suggested a Libra-like digital currency against which other currencies could be devalued.

Sechel
Sechel

Larry Summer's stint at Harvard Management should be reason numbers 1,2 & 3 why he should not be permitted to comment on Fed matters or even managing the family finances

oldereb
oldereb

IS THE FEDERAL RESERVE OR CHINA THE ENEMY OF THE UNITED STATES ??

How is the Fed being used to embezzle money from government for the benefit of Wall Street bankers ?
Answer: https://thedailycoin.org/2018/08/16/a-look-at-the-federal-reserve-through-a-different-lens/.

How is the embezzled money used to fund war-mongering, chaos, and oppression throughout the world ? The foreign policy of the US is established by Wall Street---not DC. Wall Street used their crony Allen Dulles to establish the CIA to conceal their war-mongering behind ‘national security.’ Answer: https://thedailycoin.org/2019/07/10/looking-at-the-imf-and-world-bank-through-the-eyes-of-a-wall-street-economist/.

Is this the same future Wall Street has planned for the United States ?? Answer: YES. Ref. Douglas Valentine, CIA AS ORGANIZED CRIME; John Perkins, CONFESSION OF ECONOMIC HIT MAN.

What can China do to the U.S. ? ANSWER: They can withhold shipments to Walmart. Or sell trillions of US securities.