by Tyler Durden
Friday, Sep 19, 2025 – 09:25 AM
Authored by Andrew Moran and Nathan Worcester via The Epoch Times,
MD: A “Real Money Process” (RMP) does not have reserves. Rather it perpetually maintains perfect supply/demand balance of the money itself (and thus system integrity) via the process. As soon as a DEFAULT is detected, it is immediately mitigated by an INTEREST collection of like amount. The operative relation is INFLATION = DEFAULT – INTEREST = zero. This always makes it interesting to annotate anything that deals with the Federal “Reserve” System. It’s confusion is represented right their in its name.
Reforms may be on the horizon for the Federal Reserve System, as a new bill aims to alter the U.S. central bank’s dual mandate.
MD: An RMP has no mandate, nor does it need one… let alone two.
House Republicans, led by House Committee on Financial Services Chairman French Hill (R-Ark.), introduced the Price Stability Act of 2025, a bill that would end the twin mandate, ensuring the Federal Reserve concentrates primarily on containing inflation.
“For too long, the Federal Reserve has been stretched between competing objectives. It’s time to return to a clear, singular focus: protecting the wallets of American families by keeping inflation in check,” Hill said in a statement.
MD: “For too long”? As in since it was imposed in 1913? The FED has one objective. To collect INTEREST and deliver it to the money changers. Everything else if theater.
In 1977, Congress formally introduced the twin mandate of ensuring maximum employment and price stability through an amendment to the Federal Reserve Act of 1913. The broader legislative initiative emerged as the U.S. economy struggled with higher unemployment, rising inflation, and volatile GDP growth rates.
MD: This I did not know. I thought that was its claim from the very beginning. I have never read the Act. Why bother? When an RMP can be described so concisely and completely you don’t need the details of its competition to know the competition is “no contest”. The RMP has no interest or sensitivity to unemployment or GDP growth rates… neither of which can be measured. It has explicit interest in INFLATION which also can’t be measured… but which the RMP can guarantee to be perpetually zero. Can you imagine brain-dead Congress trying to improve on an RMP? It’s kind of like the justice system trying to improve on the “golden rule”.
Now, a chorus of GOP lawmakers says the institution’s expanding regulatory and supervisory purview over the years is hindering the central bank’s efforts to stabilize prices and threatening the central bank’s independence.
MD: Earth to GOP Lawmakers: “All” of government’s problems with purview of any kind are caused by its perpetual counterfeiting. And BTW, what branch of the Federal Government does the FED fall under. For example, Trump is trying to fire one of the FED governors. Does that mean it’s under the Executive branch?
MD: Their website says: The Board of Governors–an agency of the federal government that reports to and is directly accountable to Congress–provides general guidance for the System and oversees the 12 Reserve Banks. Sounds like Trump has no jurisdiction. Does he appoint anybody in the FED. I guess that a rabbit hole we can leave alone for now.
“Expanding its regulatory reach through unaccountable international agreements or otherwise ill-defined third and fourth mandates, distracts the Fed from doing its congressionally mandated job well,” said Rep. Frank Lucas (R-Ok.), head of the Monetary Policy, Treasury Market Resilience, and Economic Prosperity Task Force.
“The Fed’s actions must stay squarely within congressional intent.”
It is unclear how much broad support there is in the upper chamber for reforming the dual mandate.
Rep. Thomas Massie (R-Ky.) told The Epoch Times that he would support removing all mandates and “just eliminate it … get rid of the Fed.”
MD: And what does Massie propose for the creation and destruction of money. I wonder if we could get him to look at the RMP in this regard. Getting rid of the Fed is a good idea but we sure don’t want some department that is as stupid as the Treasury Department to take up that responsibility.
“The fact that they’re trying to do something to it means that it is broken,” he said.
The legislative proposal from GOP lawmakers comes soon after the Fed completed its review of its monetary policy framework, which, in part, examined the dual mandate.
MD: If you think there is such a thing as a monetary policy framework, let alone a monetary policy, you have some studying to do.
Fed officials agreed to return to flexible inflation targeting in the policymaking blueprint and abandoned the “makeup strategy,” a key component of the 2020 framework.
MD: If your inflation target is anything but zero you’re on the wrong track. And zero is not a target… it’s a guaranteed result of an RMP.
“The document continues to explain how we interpret the mandate Congress has given us and describes the policy framework that we believe will best promote maximum employment and price stability,” Fed Chair Jerome Powell said last month in his speech at the central bank’s annual Jackson Hole retreat.
MD: Again. And RMP doesn’t care anything about policy. It cares only about one simple thing. That being perpetually guaranteeing the relation: INFLATION = DEFAULT – INTEREST = zero.
“We continue to believe that monetary policy must be forward looking and consider the lags in its effects on the economy.”
MD: There is no way to know how many lags there are; what those lags are; how they are phased; and what they have to do with the economy. And an RMP doesn’t care. With the RMP guaranteeing Free Supply of Money and perpetual zero INFLATION and zero INTEREST load on responsible traders, everything else will take care of itself.
Talking Reforms to the Federal Reserve
In recent months, several senior administration officials and economic observers have recommended a full review of Fed operations.
Earlier this month, Treasury Secretary Scott Bessent penned an essay titled “The Fed’s New ‘Gain-of-Function’ Monetary Policy.”
The piece was a sharp critique of how the Federal Reserve has evolved since the 2008 global financial crisis. Bessent, who has been a frequent critic of the century-old entity over the past year, stated that the Fed has engineered new powers, pointing to, for example, quantitative easing—an unconventional monetary policy tool that consists of creating ultra-low interest rates, buying government bonds, and injecting liquidity into the U.S. financial system.
MD: All this manipulation is at best theater… at worst corruption. And it is likely the “worst”. It creates the so-called business cycle which is the money-changers farming operation.
According to Bessent, the Fed has distorted financial markets, diminished independence, and manufactured adverse consequences for the economy.
“Overuse of nonstandard policies, mission creep, and institutional bloat are threatening the central bank’s monetary independence,” Bessent wrote.
MD: Bessent as head of the Treasury is proof positive the Treasury doesn’t know what it is doing. Nor does Trump who put her there. And how can you have a “non-standard policy” when you have no standard nor any way of complying with one. The bank’s don’t need monetary independence. The RMP dictates their actions… should they exist at all, and I don’t see why they should.
He proposed a full-scale “honest, independent, and nonpartisan review” of the entire Federal Reserve System, such as monetary and regulatory policymaking, communications, staffing, and research.
Treasury Secretary Scott Bessent testifies before the House Ways and Means Committee on Capitol Hill in Washington on June 11, 2025. Madalina Vasiliu/The Epoch Times
Others have also called for reviewing and reforming the U.S. central bank.
Most notably, former Fed Governor Kevin Warsh, who is one of the three finalists on the short list to replace Fed Chair Jerome Powell next year, suggested a “regime change” at the institution.
“The credibility deficit lies with the incumbents that are at the Fed, in my view,” Warsh said in a July 17 interview with CNBC’s “Squawk Box.”
MD: The “credibility deficit” lies in trying to use anything but an RMP. It’s as good a system as can ever exist for provisioning money.
He also suggested an alliance between the Federal Reserve and the Treasury Department, similar to the one that occurred in March 1951. Both institutions agreed to liberate the Fed from the Treasury’s control, allowing it to conduct monetary policy independently of executive intervention.
MD: Liberate the Fed from Treasury’s control? So that means it was under the Executive Branch? Need to look into what happened in March of 1951.
The Fed had been pressured during World War II to keep interest rates artificially low to help fund war efforts with cheap debt. A burst of inflation occurred after the war’s end, but it was not until after the accord that the Fed started tightening monetary policy.
MD: And here is where an RMP really shines. When the “elites” want to turn on their war factories, they have to find different funding than government counterfeiting. This should eliminate wars altogrther. Put the “elites” in a ring together and let them settle their differences by dukeing it out.
Warsh said a new arrangement should enable the Fed and the Treasury to communicate their objectives to the financial markets.
“We need a new Treasury-Fed accord, like we did in 1951, after another period where we built up our nation’s debt, and we were stuck with a central bank that was working at cross purposes with the Treasury. That’s the state of things now,” he said.
“So if we have a new accord, then the Fed chair and the Treasury secretary can describe to markets plainly and with deliberation, ‘This is our objective for the size of the Fed’s balance sheet.’”
MD: The blind leading the blind?
A March 2024 paper by the Manhattan Institute, co-authored by Fed Governor Stephen Miran, suggested a series of reforms to strengthen independence and recalibrate “the Fed’s governance to ensure that it remains insulated from day-to-day politics.”
The paper proposed reforming term limits, closing the revolving door between the executive branch and the Fed, addressing the FOMC voting structure, and bolstering the “influence and independence” of regional central banks.
“Only by providing for both accountability and a reliable measure of independence can the Fed restore its reputation in the eyes of the public,” the report stated.
A recent Economist–YouGov poll found that only 45 percent of Americans trust the Federal Reserve to handle the U.S. economy, with thirty-three percent approving of the job Powell is doing as head of the central bank.
At the Sept. 17 post-meeting press conference, when asked if he would support an independent review, Powell signaled he was open to the idea.
“We’re certainly open to always trying to do better,” Powell said.
MD: Try an RMP… and take the rest of your life off.
The Fed followed through on its first rate cut of the year at the September Federal Open Market Committee policy meeting. Officials voted 11–1 to reduce the benchmark federal funds rate by a quarter point to a target range of 4.00 percent to 4.25 percent.
The rate-setting FOMC will convene its next two-day policy meeting on Oct. 28 and 29.20,142191