Donald Trump, the Politicized Fed, and the Golden Rule

Donald Trump (photo credit: Gage Skidmore)

Left-leaning thought leaders have been unfairly scalding Donald Trump for his recent observations that the Federal Reserve is politicized. Therein an inconsistency, verging over into naked hypocrisy, by the left is revealed.

The LA Times summed up the story in an article headlined “Is the Fed Politically Biased“:

Every four years, the independent Fed faces the same predicament: how to try to manage the economy without appearing to favor either party’s presidential candidate.

The sly phrase is “without appearing to.”

Which, of course, is a very different thing than “without.”

The politicization of the Fed is one of Washington’s biggest Open Secrets.  As I wrote in Forbes.com, “Dear Chair Yellen: Mend The Fed“:

As journalist Steven Solomon wrote in his indispensable exploration of the Fed, The Confidence Game: How Unelected Central Bankers Are Governing the Changed World Economy (Simon & Schuster, 1995):

Although they strained to portray themselves as nonthreatening, nonpartisan technician-managers of the status quo, central bankers, like proverbial Supreme Court justices reading election returns, used their acute political antennae to intuit how far they could lean against the popular democratic winds.  “Chairmen of the Federal Reserve,” observes ex-Citibank Chairman Walter Wriston, “have traditionally been the best politicians in Washington.  The Fed serves a wonderful function.  They get beat up on by the Congress and the administration.  Everyone knows the game and everyone plays it.  But no one wants their responsibility.”

Why, then, gold?  As Virgil wrote in the Aeniad: Facilis descensus Averni. 

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Jimmy Kemp Endorses Daria Novak in U.S. House Race

U.S. Capitol building

Connecticut GOP candidate for Congress and longtime gold standard proponent Daria Novak has just received the endorsement of Jimmy Kemp, son of the late Jack Kemp, former HUD secretary and New York Congressman who also ran alongside Bob Dole in his 1996 bid to defeat former President Bill Clinton. In a statement reprinted yesterday by the Novak campaign, Kemp reiterated Novak’s reputation as “a relentless fighter for the growth policies that Jack Kemp advanced…to create 40 million new jobs in the 80’s and 90’s” and called Novak, “a champion of the classical gold standard.”

Novak is just the latest Republican to actively address what is emerging as popular issue in the 2016 campaign. The top two candidates running for the Republican presidential nomination, Sen. Ted Cruz (R-TX) and New York billionaire Donald J. Trump, have both spoken positively of returning the United States to hard currency, as have other congressional candidates. By making the gold standard a centerpiece of her campaign, Novak is hoping to ride the “hard money tide” all the way to the House of Representatives, stating on her campaign site, “The classical gold standard is Constitutional money and it made America great.”

Kemp’s endorsement also comes on the heels of oft-cited business leader and economics expert George Gilder’s, after whose ideas Reaganomics was modeled, as well as that of two-time Republican presidential candidate and businessman Steve Forbes, who referred to Novak as “a ‘Prosperity Heroine.’” Novak will face four-term Democratic Congressman Joe Courtney in the general election contest this fall. Continue Reading

Can the GOP Unite to Restore Economic Prosperity?

From left: Donald Trump and House Speaker Paul Ryan (R-WI)

Last week Donald Trump met with Jack Kemp protégé House Speaker Paul Ryan. As the Washington Post aptly put it, “Ryan has the House. Trump has the party.” To quote the founder of the Republican Party, Abe Lincoln, who was quoting Scripture: “A house divided against itself can not stand.”

This meeting was an iconic moment that distilled the dynamics and douleurs of GOP 2016 perfectly. The modern GOP is the House That Jack — Jack Kemp — Built. That House is in disarray.

Jack Kemp championed, and inspired presidential aspirant Ronald Reagan to adopt, the economic formula that rescued America from decades of stagflation. Kemp unleashed an era of epic world prosperity.

[…]

Begin with an across-the-board reduction of marginal tax rates, now in the hands of Kemp acolytes and trusted Ryan and Trump advisors Kudlow and Moore. Conjoin it with the resurrection, far easier than Speaker Ryan or Mr. Trump may think, of Jack Kemp’s Gold Standard Act of 1984.

Ryan’s chief of staff Dave Hoppe, once upon a time Kemp’s chief of staff, was a key architect of the Gold Standard Act, together with Lehrman and former Kemp economist John Mueller. Together the tax rate cut plus gold standard hold the essence of Kemp’s recipe for prosperity and justice for all.

Fuse Trump’s intuitive grasp of the spirit of equitable prosperity with Ryan’s fine-tuned grasp of the way the world works and critical mass is achieved to the benefit of both and of America.

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Who Will Be the Next Jack Kemp?

Former U.S. Representative and Secretary for Housing and Urban Development Jack Kemp (photo credit: Austin Bonner via Flickr, CC BY-SA 2.0)

This column was co-authored by Jeff Bell, Policy Director for the American Principles Project.

America needs a quarterback. America needs a leader, an optimist, a coalition-builder, and a visionary.

America needs Jack Kemp back.

Kemp was an American legend. A quarterback of the pre-Super Bowl era who led the Buffalo Bills to consecutive championships in the American Football League, Kemp went on as a Member of Congress to lead the Republican Party to historic legislative victories. Known as a champion of supply-side economics, Kemp was one of the earliest promoters in the Republican Party of pro-growth tax rate cuts, arguing in his book An American Renaissance that “a rising tide lifts all boats.”

Given his success as a leader of the conservative movement in the 1970s and 1980s, an interesting question is: what would Jack Kemp be doing if he were alive today?

[…]

Read the full article at Townhall.com.

Frank Cannon is president of the American Principles Project. Continue Reading

Will Paul Ryan Be a Worthy Successor to His Mentor, Jack Kemp?

House Speaker Paul Ryan (R-OH) (photo credit: Gage Skidmore)

Paul Ryan recently, reluctantly, courageously, accepted the Speaker’s gavel in the House of Representatives. The terms on which he agreed to accept this very important post were his own, and dignified. His acceptance speech was impressive, promising to change the culture of the House in fundamental ways. Ryan, at his Kennedyesque best:

I often talk about the need for a vision. I’m not sure I ever said what I meant. We solve problems here—yes. We create a lot of them too. But at bottom, we vindicate a way of life. We show by our work that free people can govern themselves. They can solve their own problems. They can make their own decisions. They can deliberate, collaborate, and get the job done. We show self-government is not only more efficient and more effective; it is more fulfilling. In fact, we show it is that struggle, that hard work, the very achievement itself that makes us free.

Ryan promised the Freedom Caucus, and the Republican Conference, that he would return Congress to regular order and champion free market economic growth. All eyes are on him. Will he follow through?

In one of his first official acts Speaker Ryan convened the House Republican Steering Committee to elect a successor to the critically important chairmanship of the House Ways and Means Committee. A hot contest ensued for this post. Rep. Pat Tiberi (R-OH) was contesting Rep. Kevin Brady (R-TX).

Brady was the more senior, clearly the more conservative (by all the conservative report cards), and as I earlier noted here, was considered by supply-siders as having, as described by PutGrowthFirst’s Rich Lowrie, “the best pro-growth chops in the House” ….

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Ted Cruz Hits a Grand Slam: The Dollar Should Be “Ideally Tied to Gold”

Financial reporter Rick Santelli — who triggered the Tea Party movement — put a profound question to Sens. Ted Cruz and Rand Paul in the CNBC presidential economic debate. Santelli’s key question was about the impact of the Fed on job creation and economic growth.

His question and the answers were a highlight of a very fine, informative debate.

Sen. Cruz hit a grand slam:

Senator Cruz, in his answer, featured his original co-sponsorship of Audit the Fed. Even more impressively, Cruz featured his original co-sponsorship of the Centennial Monetary Commission, a crucially important piece of legislation to restore high integrity monetary policy.

Then … Sen. Cruz upped the ante with an unprompted observation that the dollar should be “ideally tied to gold.”  “Ideally” is exactly right.

The American Principles Project has long been at the forefront of advocating defining the dollar as a fixed weight of gold, legally convertible thereto, as fundamental to restoring equitable prosperity: sizzling job creation and economic growth for workers at least as much, perhaps even more, than for business.

The gold standard was advocated by the iconic Rep. Jack Kemp — the quarterback behind Reaganomics with its dramatic growth in jobs and the economy, especially for workers, and later HUD Secretary and Republican Vice Presidential nominee.

Kemp — closely advised by APP’s policy director Jeff Bell, among others — was the key figure of our era in restoring America’s economic growth.  Kemp’s gold standard — of which Bell was an essential advocate — remains the most important unfulfilled part of Jack Kemp’s “Unfinished Symphony.”  The gold standard means growth. Continue Reading