Potential presidential candidates should have some understanding of America’s central bank system. They don’t.

Maybe it’s too early, but political nerds view the mid-term election as the starting date for the following general elections campaign season. The 2024 election season should be treated no differently.

As a lawyer and a blogger focused on the intersection of law, politics, and the interbank markets, I am interested in how the potential new head of the government views the role of the executive in managing a political economy where the bond and currency markets play a role in validating to American taxpayers why the American political economy is worth the taxes they pay and why members of the State should trust the new head of State ( a topic to explore later) to extract the aforementioned taxes and other economic energy that flows to the State’s benefit.

Names that have been bobbing about in my mind as potential presidential candidates include a number of gubernatorial candidates including Wes Moore (Maryland), Stacey Abrams (Georgia), Gavin Newsom (California), and Ron DeSantis (Florida).

Again, I know it’s early, but assuming these men and woman harbor any ambition for higher office, they could learn from a former governor turned president, Bill Clinton, that it would behoove them to understand the importance of not only the bond markets, but the interbank market as well.

A cursory review of each of the above candidates’ views on the interbank markets and the bond markets showed that the candidates were lacking on the technical issues behind the causes of inflation and the role of the bond markets during times of economic crisis. None of these presidential potentials had any substantive media discussions on the topic.

The logical rebuttal is that as heads of state governments, the operations of the interbank market is not the primary concern of a state governor. I think a state governor should have an awareness as to how the economic system works and the one institution driving the narrative around American economics is the Federal Reserve System.

I would counsel any governor, especially one with aspirations for higher office, to be mindful of the central bank and the impact its operations have on a state’s taxpayers and consumers.

Alton Drew

12 October 2022

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Disclaimer: This blog post should not be construed as legal advice or an agreement to provide legal or political analysis.  To set up a consultation, contact us at altondrew@altondrew.com.