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An ‘Open’ Letter to Janet Louise Yellen, et al!

June 20, 2014

Hi Janet and Company. I just wanted to communicate a few titbits of information for your consideration and reflection. This missive is meant to be educational as well as a reflection of my personal view and understanding of the issues presented. I view myself as a fellow American who desires our economy to flourish and prosper (as I assume you do also). I plan to be kind with my choice of words in this missive. I would like to have you copy this open communication to your key policy associates, i.e., Mr. Stanley Fischer (now the Vice Chairman of the Board of Governors) and William Dudley (Vice Chairman of the Federal Open Market Committee). Don’t hesitate to correct me if my perceptions and words are incorrect!

Janet Louise Yellen is an American economist. She is the Chair of the Board of Governors of the Federal Reserve System, previously serving as Vice Chair from 2010 to 2014

I consider you, Stanley Fischer, and William (Bill) Dudley the core decision-making trinity (our Central Planners) when it comes to realtime policy decisions which affect our economy directly (daily). Am I incorrect with this assumption? You are free to distribute this missive to all your additional policy-makers (within your institution) as well as the hundred’s of PhD economists which work with and for your Federal Reserve System. Let’s  talk about some confusing issues which many Americans now view as important and central to our future as a people and Nation. I plan to be brief and specific! If my understanding is incorrect, than please take the time to inform me of my misapprehensions. I use the word ‘you’ and ‘your’ (in this missive) to reflect the reality that I am not a part of this entity called the Fed! I do not view myself as one who supports this institution as Constitutional or American (given my understanding of the Fed’s history)! I stand to be corrected, however!

1. You state on your website that the Fed (the short name for your institution) is an independent governmental organization which is ‘within’ government. Let’s briefly unpack the word ‘within’. I would agree to some extent with this characterization since the Fed derives its legal ‘authority’ from the Federal Reserve Act of 1913 (an Act which many of us view as unconstitutional). I also would suggest, however, that the ‘operational’ aspects of the Fed do not appear to be governmental in nature. Why? All our governmental entities (except the Fed) derive their financial existence and sustenance from Congressional appropriations. The money ‘appropriated’ by our elected Congress creates the ‘tie’ between a governmental entity and our elected representatives. Where is this financial ‘tie’ when it comes to the Fed (operationally)? Do you obtain any appropriations from our Congress?

2. Your organization (the Fed) receives (it appears) NO appropriations for your financial operations from our elected Congress. What does this mean philosophically? Where do you obtain your financial funds for your operations? How are your cyber dollars generated? It appears, to me, that you obtain your funds via a Ponzi accounting operation. Today, your balance sheet is some $4.2 trillion (now represented as cyber dollars within the computer screen). You earn interest on these cyber assets for your realtime financial operations. How, however, did your balance sheet expand from some $800 billion in 2008 to the $4.2 trillion today? Where did your cyber dollars derive from for this huge expansion? Are you merely ‘creating’ your cyber dollars from your policy decisions (from your thinking)? What does this imply? What is our currency unit (called the ‘dollar’) today? Is it merely a unit of information within cyberspace (a no thing unit)? Can you identify (specifically) what is official ‘legal tender’ today?

3. It appears, to me, that your balance sheet numbers derive from your Ponzi accounting procedures. How can our ‘dollar’ (now a unit within cyberspace) get from you to your balance sheet so that your accounting assets increase by some $3.4 trillion? Who thinks up the ‘numbers’ which then get typed into your cyber balance sheet called the System Open Market Account (SOMA)? Is your associate, William (Bill) Dudley, at the New York Fed merely typing ‘counterfeit’ numbers into your balance sheet (via a Directive from you and the FOMC)? How can your balance sheet increase if you have no funds received from our Government (via appropriations)? My personal morality would not allow me to create ‘phantom’ numbers (called dollars) and call these units official legal tender. This is my perception of what your Ponzi accounting scheme represents! Am I incorrect? Can you elaborate on the concept called QE?

4. An additional  point which I would like to discuss is the concept of Central Planning. What would you view as Central Planning? To me, Central Planning involves a few decicion-makers who substantially affect the results within our greater economy. I don’t view Central Planning as representative of Free Market Economics or the Capitalism which has been voted on by our American citizens. I also don’t think our Constitution or our Founding Fathers desired that Americans operate under a Central Planning type concept for their economic survival. To me, the Fed is basically an organization with few decision-makers (mostly you, Stan, and Bill) who have the clout and control to manipulate the entire American economy via their private (mostly secret) decisions. Is this the American way? What is your view? What does the word ‘manipulation’ mean to you?

5. I also would like to understand why an unelected (private) economist, namely William (Bill) Dudley, has so much operational influence and control over our electronic markets and the committee called the FOMC? It appears that Bill is CEO of the New York Federal Reseve Bank (a private entity) and also a permanent member of the Federal Open Market Committee (FOMC). It also appears that Bill has oversight of all the trading operations which occur on the 9th floor of the New York Fed (a trading room which is mostly secret from realtime transparency). Why is this so? What, specifically, is Bill and his agents (traders) doing in realtime to manipulate and effect the greater American and global markets (prices, interest rates, values, asset purchases, swaps, etc.)? Does Bill represent the interests of private organizations since he has not been chosen or elected by the American people? What authority does Bill and his traders have when it comes to manipulation of market factors and trends? Can this person and his trading room be given some ‘light’ for Americans to observe? Who is Bill Dudley and what is his connection to the American public?

William (Bill) Dudley, the most powerful Central Planner with no ‘tie’ to the American electorate! Who is he? What does he do? What authority has been given him by the Fed Board and FOMC? Does anyone know?

In conclusion, Janet, I would suggest that the history of your Fed (it’s not an entity which I voted for or support) suggests that the Act which started this institution, the Federal Reserve Act of 1913, is seriously flawed (philosophically). If this history were fully revealed to all the American people (today) I don’t think that this Central Planning entity would be supported by our American citizens. Have you taken the time to read about the history of the Federal Reserve Act (1910 – 1913)? Have you considered contrarian views in addition to your official documentation? My sense is that Ron Paul is mostly correct with his assertion that we ought to ABOLISH THE FED. A realtime and transparent AUDIT of the Fed and its Ponzi accounting schemes would also be enlightening! Would you consider a transparent audit by a firm which is independent of your control? Isn’t transparency part of your philosophy? Enjoy and don’t hesitate to correct my understandings. I am:  https://kingdomecon.wordpress.com

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