Mystery Men of the Financial Crisis

New York Times ^ | February 4, 2010 | William D. Cohan

[JasonC]

It isn't. The government through an agency merely regulates some of what banks can do with it. It remains in the hands of banks and their customers. Their credit freedoms are just restricted - in a tightened direction. Without a Fed, you don't get tighter money, you get wildcat banking were anybody can make all the money they like. Then every five years people can repudiate great gobs of it as worthless. Oh joy. We tried, that, it sucked.

[Leisler]

So when FDR called in, made illegal gold certificates...that wasn’t a ‘make’ moment?

What about when Nixon took the US off the gold standard?

Last October, Paulson and Bernanke and Sheila Bair called in the major banks heads to the Treasury and forced them to sign up for funds? Patty cake?

What happened to GM bond holders? Love kisses?

The foundations of Washington power is violence, force.

[Toddsterpatriot]

Where did the bulk of the M1 dollars come from? Who made them, and can call them in( as it has ),

The Fed can add to or subtract from M1 when they feel the need.

If you have something, and in a way a other party can come and repo it, or part of it, or add to it, as they see fit, I’d say they control it.

Now that we agree that the Fed can change M1, what does that have to do with your earlier (incorrect) claim?

[Leisler]

"...merely regulates some of what banks can do.."

Yeah, it's on a three page rule book. Everything else they are free to do.

[JasonC]

You aren't forced to use US dollars for anything. Ever. You never need to own one or to touch one. You never need to account in them, measure in them, or be so much as aware of their existence.

If you voluntarily choose to use them, for anything, or find them convenient, for anything, then they benefit you. You may wish you also got free pie and ice cream, but if you freely use them, then the US dollar is a net benefit to you. Other people finding them extremely useful probably would be what prods you into using them yourself. Since your average checkout lady at Walmart wouldn't really know what to say about your sack full of crumbling blueberry scones. But you are free to try, and Walmart is free to tell you to stop wasting its time.

[JasonC]

Do you want banks to create money at will?

Yes or no please.

[Leisler]

Ah, yeah. Right. And..so..?

[Leisler]

Yes. I want free banking with private money. In general I trust private goods and services as lower cost, better quality, more filling of my needs and services than government goods and services.

[SunkenCiv]

Thanks hennie pennie.

[PGalt]

In general I trust private goods and services as lower cost, better quality, more filling of my needs and services than government goods and services.

BUMP!