Posted on 04/02/2011 5:19:45 PM PDT by SeekAndFind
Value...such an ephemeral concept.
We had booms and busts before the Fed existed.
Congress and the political government would do a far worse job of managing the money supply. They would create money 100 times faster than the Fed.
Enough with the banks are boogeymen.
Businesses need banks to have checking accounts and to get loans from time to time. So banks are not going away. Banks all own the Federal Reserve so that they both want to see each other succeed.
The more money people have, the more income banks earn. Banks do not want us all to be poor.
Congressional spending is causing the Treasury to issue more debt. Congress would do that with or without the Fed because they think they can spend like idiots and get reelected.
A fine indictment of the Fed. But no treatment of the mess we are in is complete without Congress, and agencies like Fannie, Freddie, FHA etc.
The Fed did not do this alone. It had lots of help from lots of folks in our government. As proof, consider how different things would be were Zero not running a 1.5 trillion dollar a year debt and were 12% of all homes in the US not vacant.
No, but you CAN incur debt and by so doing possess goods and services.
Debt has been functioning as money for years - at least as a medium of exchange, albeit not a store of value.
But FRNs aren't going to hold up as a store of value, either.
I think that you can make a good case that when you use your VISA card, you are creating money - at least in the post-1913 sense of the word.
Oops, rationality on a Fed Is Evil thread.
Who are these people? Names please.
Organization? Location? Any other info?
btt
The center of the corruption of this age IS the banks, and the financial services. Trying to pretend they don’t deserve SOME scrutiny is misleading.
FRN’s are not stores of value. Our whole system is fragile and has not been fixed, only PAPERED over. It will crack, and our politicians AREN’T going to fix it because it allows them to buy votes with ‘out of thin air’ money, that our TAXES pay for. Bletch!
Here is an interesting fact, just like the Dems gave us DeathCare, THEY ARE ALSO THE ONES WHO LAID THE SOCIALIST FOUNDATIONS OF THIS COUNTRY AND THE FED IS ONE OF THEM.
Debt slavery is NOT capitalism!!!!
You are delusional. The Framers warned us of the Fed. The Fed and the govt are totally corrupt. FR seems to have a lot of accepting serfs, dupes and closet hussein lovers.
Here is a fun and quick Youtube that covers the housing collapse AND banking history.
It can be watched in two 15min segments or one 30min.
It’s funny and gets to the point!
http://www.youtube.com/profile?user=theamericandreamfilm&annotation_id=annotation_996700&feature=iv
What, DC politicians screwed up yet again?
Didn't Thomas Jefferson, an esteemed American forefather, warn against a Central Bank saying he would rather see a standing army come against America than the creation of a central bank? Yes, yes he did indeed and once again, he was right. The man was a brilliant patriot and could foresee future dangers for Americans who did not take the Constitutional precepts seriously and unfortunately, they have come to pass.
Here is the flaw in the analysis:
The growth in the money supply as a consequence of the “stimulus” is not in the U.S. It is in foreign banks and investors hands.
Sales are not growing, job creation is not increasing and this does not even give the illusion of growth.
But WHEN that money comes home, as it will because the FED is either incompetent or deliberate in it’s destruction of the US dollar, it WILL create hyperinflation here.
That is a fact well known to Austrian Economists.
Right now we are fluctuating between deflation and inflation.
The hyperinflation is and has always been a currency event when confidence is lost, and it IS already happening overseas.
Beware.
Somebody explain to me - If you have a gold standard and the gov’t only issues money based on gold in their vault then doesn’t that limit wealth creation?
http://defenseofcapitalism.blogspot.com/2011/03/gold-standard-and-monetary-freedom-by.html
A good quote from the article
As Austrian economist, Ludwig von Mises, expressed it: Why have a monetary system based on gold? Because, as conditions are today and for the time that can be foreseen today, the gold standard alone makes the determination of money’s purchasing power independent of the ambitions and machinations of governments, of dictators, and political parties, and pressure groups. The gold standard alone is what the nineteenth-century freedom-loving leaders (who championed representative government, civil liberties, and prosperity for all) called “sound money.”,
I have many of Ludwig Von Mises works. He was a towering intellect, a genius equal to Einstein. Try looking around at mises.org. There are many interesting articles there. Also, fee.org is a wonderful site.
Sir, I highly suggest that you read up on Keynesian Economics. After reading up on Keynesian Sit back and connect the dots on our own economy.
After that, read Liar’s Poker by Michael Lewis. Banks DO NOT care about how much money the average joe has or puts into their bank. If they could, they would SHUT DOWN ALL OPERATIONS TO THE GENERAL PUBLIC. A (major) bank’s money comes from investments and trading not loans. Again, read Liar’s Poker.
Congressional spending has very little to do with Fed policy. The Fed operates on a Keynesian model and follows that model in order to hit target interest rates/inflation/unemployment (Phillips curve [which was proven false in this high unemployment/steadily increasing inflationary environment] oopsie)
I also suggest zerohedge.com for all your Economic needs.
And a quick google search of Austrian Economics can never hurt!
The Fed is the source of almost all of our problems because of inflation and debt. The congresscritters can only spend so much without public scrutiny (AKA Tea Party and 2010).
The Fed can damn well create money till the cows come home and the average American Idol American wouldn’t know a damn thing.
And no, bankers aren’t boogeymen but they are out to make the bank, and themselves, money. Remember that if you can’t find the sucker in the room, your the sucker!
Agree +1000%
Austrian Economics is, by far, the best school of thought in Economics IMHO.
You can’t quantify human behavior/thought.
Yes... unless they change the amount of gold they will redeem for 1 dollar.
If we start at, say: 1 troy oz Gold = $1,000
Say gov’t has 1 billion troy oz of gold in it’s vaults. It can create up to $1 trillion dollars of money.
Say gov’t needs to increase the money supply to $2 trillion dollars because our population went up from 300 million to 600 million.
How do they pay for the additional gold they need to back the new paper money they want to print ?
If they just print $1 trillion MORE paper dollars to “pay” for the gold to “back” the newly printed paper dollars, then they need to keep all the gold they bought in the vault. Which is good, that’s ok, that’s what set out to do, every dollar is backed by gold in the vault. The gold can never leave the vault unless a dollar is redeemed.
So the mining company got paper for their gold, but their paper is worth something, because they could turn it all in at any time for the gold ! Great ! The mining company then spends all the new gold-backed dollars into the economy. Ok.
One open issue is... still... who decides exactly how much new money to create ? Who makes that determination if we don’t want the Fed to ? Right now, the Fed guys are NOT elected (remember lobbyists... SEIU). Member banks actually own the Fed, and banks don’t want to see a banking system collapse. Does the President decide ? The Treasury Secretary (appointed by Pres) ? The Congress ? Some new, independent body ? Ok, keep that in mind. Also, any profit the Fed makes - gets turned over to the U.S. Treasury.
Here’s the kicker:
What if is decided that hey; we need get 1 billion more troy oz of gold and print 1 trillion more dollars, like I said above, and...
What if the gold miners of the world, dig as they may, don’t have 1 billion more troy oz of gold available to sell, they only have 1/2 billion troy oz of gold ? And gov’t needs $1 trillion new dollars ! Ouch !
Then gov’t will still have a way out - woo-hoo - they can change the exchange rate for dollars to gold. Let’s make each troy oz = $1333.34 then print $1 trillion new dollars and buy the 1/2 billion troy oz with those dollars.
Can you do the math ?
$1,333.34 x 1,500,000,000 = $2,000,010,000,000
Voila ! They have $2.00001 trillion dollars in circulation, all backed by gold at $1333.34 per oz.
Do you see why there’s a move to have nations back their currencies with gold now ?
How would you feel about this plan if you owned $100,000 worth of gold bullion ?
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