Posted on 12/09/2010 10:57:02 AM PST by speciallybland
Rep. Ron Paul, the Texas Republican who has passionately called for dismantling the Federal Reserve, will be running the panel that oversees the central bank when Republicans take the House majority next year.
Mr. Paul has introduced legislation to abolish the Fed, wrote the book, “End the Fed,” and rallied support for eliminating it.
Rep. Spencer Bachus (R., Ala.), who will take over the House Financial Services Committee from Rep. Barney Frank (D., Mass.), announced today that Mr. Paul, a libertarian who won a fervent following when he ran for president in 2008, will head the Domestic Monetary Policy Subcommittee. The 11-term lawmaker was in line for the post, but there had been some talk that GOP leadership might pick someone else.
(Excerpt) Read more at blogs.wsj.com ...
Oh yes that Gold standard thing that has been around for thousands of years. The same standards the Founding Fathers You are right he must be nuts! (sarcasm off)
Yes and while on the gold standard, we had deflationary depressions every 20 years. And the dollar still lost 51% of it’s value from 1800 to 1900. And there was a bout of hyper inflation in the 1850’s.
And guess what? The gold standard didn’t stop either the Federal government or the state governments from overextending on debt either.
There’s only 5 billion oz of gold in the world. And there is 6 billion people. How small do you like your coins?
Do you know who is the major producer of gold now? That’s right...China. Imagine how much better it would be if China controlled our money growth than if the FED did.
Actually you misinterpreted, I never claimed such. I said all the assets would suffer the same monetary loss and monetary loss (as I intended its usage)is defined as the purchasing power of the dollars involved.
In the example given a tank of gas for mile car which enables to travel X miles cost $40.00 in the year 2010 and in the year 2011 that same tank of gas increases to $40.40 then I have incurred a monetary loss being I must pay more to get my car to travel X miles.
Now your claim is that you could hedge inflation by buying stocks because they will appreciate in value. Which sounds good except its far from true because as everone knows stocks can decrease in value regardless whether inflation increases. In fact in your example you used oil stocks which I find highly amusing. I am willing to bet that those folks who purchased BP stock in January of 2010 would find it amusing also.
QED
So you were agreeing with DannyTN when he said the following?
The Average U.S. household has $100,000 in total net assets. So applying the statistic above, the average household probably keeps about $10,000 in monetary assets. 1% inflation on that costs them about $100 a year in purchasing power.
FYI... Just a little side note. They keep finding more gold every year. It’s not going to run out, but yes supplies are limited which hold it value.
So let’s talk about the Federal Reserve you. Since it has been created how many wars has it prevented? What about inflation, deflation, recessions and depressions. What about the bailing out FOREIGN BANKS with our money? What about how they tell our congress no you can’t look at our books? That does not raise any suspicion?
If you have the time, then please watch this presentation. Break out a cup of coffee and enjoy. Probably the most you ever heard about Federeal Reserve. Well worth the watch and too bad you can’t get a college credit for it.
http://www.youtube.com/watch?v=7auQEXTWomA&feature=related
80 years ago, that cash would have been made out of gold or silver, and it has lost none of its purchasing power in that time. A silver quarter is still worth a gallon of gas. A gold coin is still worth a good men's suit.
You're talking about Federal Reserve Notes, not dollars. The problem is with Federal Reserve Notes, whose value can only go down. The problem isn't with cash. it's with the Federal Reserve.
The Fed sucks. The best way to cure the plague that is the central bankster is stab them in the heads with a pitchforks until they stop twitching.
But let's see if Crazy Ron can obviate that more intensive form of surgery.
BS. A gold coin is curently worth 4 good men's suits. And 5 years ago a gold coin was barely worth the cheapest man's suit.
The stability purported for gold is not really there.
Over the long run, you can expect deflation with gold because the supply of gold does not grow as fast as the supply of goods in the economy. There are 5 billion oz of gold in the world. There are 6 billion people.
In the 1800's we had several depressions and one bout of hyper inflation during the gold rush.
Deflation is bad for the economy, because holding cash becomes better than investing in the economy.
Wow, I've never heard anybody completely get basic supply and demand so bass ackwards like you just did. And so publicly.
I give you a FAIL. Epic.
Please explain what you think I got wrong.
Do you think the supply of gold is going to keep pace with the supply of goods? Not likely.
If your currency is gold, and you have a static amount of currency chasing more and more goods, what happens to the price of those goods? They deflate.
And we’re 14 trillion dollars in debt.
How much was authorized by Congress? $14 trillion. How much was issued by the Treasury component of the Executive Branch? $14 trillion. And who spent it? Congress.
Congress can over in-debt us regardless of whether there is a FED, or a central bank, or no central bank.
Eliminating the FED, won't eliminate Congress' appetite for debt. Only electing men of good character will do that.
Eliminating the FED will place control of our economy in the hands of foreigners. Our economic future will be determined by the major producers of Gold, China and currency speculators such as George Soros.
Let’s nationalize the NY FED and make it a Bureau of the US Treasury.
Why on earth would you want to do that? You don't want any part of the FED under direct control of Obama.
The Constitution requires that the congress will regulate the value of the currency - That is Article 1 section 8. Please read it before you fire off
and then we have to get rid of OBAMA, I know you'll agree with that one.
Have a nice day.
I typed that that very early before my coffee :) - I meant to say we should replace our current president at the next election in 2012.
Only the Federal Reserve banks, not the Federal Reserve Board, are private corporations and then they are unlike any other in existence. Yes every member bank gets to purchase a share of the FED upon joining.
"The twelve regional Federal Reserve Banks, which were established by Congress as the operating arms of the nation's central banking system, are organized much like private corporations--possibly leading to some confusion about "ownership." For example, the Reserve Banks issue shares of stock to member banks. However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year."
Federal Reserve Banks management is different too than any other corporation.
The Federal Reserve Board of Governors is not privately owned. It's a government agency with the goverors all appointed by the President.
The seven members of the Board of Governors are nominated by the President of the United States and confirmed by the U.S. Senate. By law, the appointments must yield a "fair representation of the financial, agricultural, industrial, and commercial interests and geographical divisions of the country," and no two Governors may come from the same Federal Reserve District.
The Constitution requires that the congress will regulate the value of the currency
Claiming that Congress setting up the Federal Reserve Board by law to manage the value of the currency is not "Congress regulating the value of the currency" is disingenious. It's in the same line of thinking that only elected congressional officers can make tax collection calls and they can't delegate it to the IRS. It's kooky.
I see you have defended the integrity of their Federal Reserve Board of Governors. I agree. it might be wise to keep this Board of Governors in place. And the venerable Princeton professor Mr Ben Bernanke can remain as trusted chairman.
But as you said: the federal reserve banks themselves are private corporations.
I propose that we SEIZE only the Federal Reserve Bank of New York. and install it as a Bureau of the United States Department of Treasury. Where it can be subject to the kind oversight of the GAO.
I propose their offices should be placed alongside the Bureau of Engraving and Printing. Where our currency is issued.
How you like them apples?
That is still a bad idea. For one it violates the separation of powers. You'd have a bank capable of performing open market transactions with the Treasury that is now part of the Executive instead of a quasi-public or private (whatever you want to call it) corporation set up by Congress. Obama couldn't just order the Treasury to issue debt, up to the limits imposed by congress, he could order the NY Federal Reserve Bank to buy that debt at whatever price Obama designated.
"But as you said: the federal reserve banks themselves are private corporations. "
They can be called that because the member banks do own the private corporation. But because of the following differences with normal private corporations, I don't really consider them to be private.
That makes sense too?
It probably made more sense when they set up the districts. If you look at a map it doesn't seem that bad.
Federal Reserve Districts
It could probably stand to be revised based on the population and the number of banks. But it's working well enough, and revising it means law changes and that ALWAYS provides opportunity for pork. So I say leave well enough alone.
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