We issued this YouTube short at lunchtime today:
This is the transcript:
Donald Trump is opposing Jerome Powell, who is the chair of the US Federal Reserve.
That matters.
The US Federal Reserve is responsible for the issue of the dollar, and the dollar is the world's reserve currency.
All oil is traded in the dollar.
The US's power is dependent upon the existence of the dollar and its ability to spend dollars into existence that the rest of the world will accept.
If Jerome Powell is thrown out from the Fed, if Trump takes it over, if Trump uses the Fed as another vehicle for enhancing his own power and wealth, then we're all at risk because the instability that will follow will spread.
It will spread to here in the UK.
It will impact our interest rates.
It will impact our economy.
It will probably create a worldwide recession.
Donald Trump's megalomania is a threat to your well-being.
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This does raise an interesting question. Is it better for central banks to be run by the governments of which they are a subsidiary – recognising that politicians will always place popularity with the electorate above economic considerations – or by arms-length officials who in principle are appointed for their expertise?
Does one prefer Trump with his democratic mandate to the appointed Powell? Or Reeves and Starmer to Bailey? Your analysis of the risks of Trump ejecting Powell suggests there is some benefit to the arrangements currently in force.
(I recognise the question put like this is a bit simplistic, but it is what it comes down to. Ultimately Powell and Bailey do have some sort of democratic accountability through their appointment and reporting arrangements, and there is a secondary question of whether those processes are adequate within our democratic systems).
I don’t agree that politicians will always place popularity with the electorate above economic considerations.
That is a trope promoted by those who oppose democracy.
Why do you buy into it?