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We might not need the Fed if govt quit deficit spending. Last presidential election, there was a great man running who cared about the 100% equally, Gary Johnson. He started off as a Republican, but he wouldn't totally agree with the party platform that favored special interests, so they left him out of most polls & most debates.
Then he went Libertarian, & to make sure he didn't win, Republicans made him collect all the thousands of signatures from each state again, using up his time & money. He had a proposed budget, slash $1 billion from budget, cutting every dept spending by 43%, to give us a balanced budget 1st year. He proved his abilities as popular 2 term guv of NM as he inherited a deficit, cut taxes, & left state with a $1 billion surplus. He's been saying legalize MJ since 1999, he used it when he fell 50'. Rejection!
Just vote Libertarian as both Dem & Rep are most of the cause for most problems. They hate the Constitution & just want to repay the bribers by hurting the majority. Of course Ron Paul who tried to run as Rep was rejected too & Fox asked if he took his marching orders from Al Qaeda. Ron Paul wrote much about the Fed. Reserve. Hate them & hate wars, you're out!
If you don't want crooks running the country, stop voting for Dem or Rep. If an honest person gets in their party, they will do every thing they can to reject them. Best wishes.
The national bank is merely attempting to fix the problems you keep creating.
If you want to stop it, then man-up for starters. That would help a lot. Take responsibility for your continual failure to elect good government, and your failure to live within your means.
You cannot prove the US Dollar has lost 98% of its value either.
Mircea
Oh my, and to think as a Libertarian I never vote for any members of the two-party mafia. Oh yes and I have no personal debt either. How much did a gallon of gas or an ounce of gold cost in 1914?
If the Fed was not there to create money to support the current system, there would be no way the politicians could continue their deficit spending. Interest rates would rise enough to end the madness. Instead the Fed continues to kill the economy by burying it in more debt.
No they won't...I work on wall street and we pray every day that the fed will start tapering. We would much rather have a stable economy so that we can start investing long term again instead of sitting on a house of cards, having to guess what markets will do in the next six months.
Wall street does not want more 'free cash', and 99% of wall street wants what is best for their clients, not just more money in their pockets. Obviously that fact doesn't make it on the news, because it doesn't drive as high of ratings as the drivel we see reported about wall street today. Do you base your assumptions on reality, or on motherjones.com articles?
"Remember the 70s"!
I am getting nervous because I am not sure the Fed can predict with much accuracy how long the lag period is between the ex-ante "warning signs" and the ex-post onset of inflation, or the rate at which it grows: dr/dt^2.
The top graph is the money base. Notice how there was a sharp increase in the money supply since the great recession?
The bottom graph is the Value of the Dollar:
Where is the big drop in the dollar since the Fed massively increasing the money stock? It sure looks like the largest fall when the Fed wasn't increasing the money supply much.
Quote:
Originally Posted by tallrick
It takes time for the damage to be done once the fire starts. The new money is being hoarded by banks to build "reserves". However, when confidence is lost through endless printing those dollars will flood back in and bury us.
So, you stick by your theory even though it hasn't come true in five years in the presence of massive money growth? Undoubtedly, if in 20 years "damage" happens you will blame this event. I guess even a broken clock reports the correct time twice a day.
What I see is an attempt to defend one's intellectual investments in the presence of a failed theory. Instead of looking at what actually happened and realizing that reality contradicted your theory and discard the theopy, you double-down on the theory and claim it eventually will happen. "The point is that we are all capable of believing things which we know to be untrue, and then, when we are finally proved wrong, impudently twisting the facts so as to show that we were right. Intellectually, it is possible to carry on this process for an indefinite time: the only check on it is that sooner or later a false belief bumps up against solid reality, usually on a battlefield." -- George Orwell
We are in an economic slow growth environment with unemployment at 7.5%. Reducing unemployment is a goal of the Fed and it s using loose monetary policy to achieve that goal. The results are low mortgage rates that drive home sales -- a major force in the economy; and low rates for businesses.
Maybe thats the real problem. The FED is taking on the burden of creating jobs by giving away money, so people can get loans easier. But what are these people going to do with the loans? What businesses can they start? A bodega, a movie theatre, or is buying a home and flipping it all there is to do now? Can I borrow enough money to start my own bank? Why not just loan directly to people and cut out the banks then?
The big question I keep asking is why aren't 2-3 finance courses mandatory curriculum in every high school in the country? Imposing that requirement alone would solve a lot of our problems.
The problem with education these days, is that if we had 2 courses in High School on basic economics, it would produce people who know EVEN LESS than they do now.
Sadly, schools these days do little teaching and a LOT of political indoctrinating.
What I see is an attempt to defend one's intellectual investments in the presence of a failed theory. Instead of looking at what actually happened and realizing that reality contradicted your theory and discard the theopy, you double-down on the theory and claim it eventually will happen. "The point is that we are all capable of believing things which we know to be untrue, and then, when we are finally proved wrong, impudently twisting the facts so as to show that we were right. Intellectually, it is possible to carry on this process for an indefinite time: the only check on it is that sooner or later a false belief bumps up against solid reality, usually on a battlefield." -- George Orwell
That's exactly what I see you doing.
The theory that borrowing money and printing money can bring about good economies... Is an abject failure.
Yet, when someone points out the inevitable problems that result from it, you accuse them of supporting "failed theories"? It's no theory. The unlimited dumping of printed cash and lent money into a system WILL have catastrophic results. That's not a theory, that's fact. And anyone denying it... is defending the theory that fact is wrong and theory is correct.
It takes time for the damage to be done once the fire starts. The new money is being hoarded by banks to build "reserves". However, when confidence is lost through endless printing those dollars will flood back in and bury us.
How will it "flood back in". The banks going to simply give it away? Or start lending like they are expected to? Or are they going to buy back those bonds the FED is holding? Isn't that the plan?
Hey Mircea, been waiting for you to come around. Remember when you forecast angrily that the sequester would throw us into a recession by this time 2013? What happened?
Funny thing about forecasts, they are full of unknown variables and conjecture. The people that make them are often full of something else.
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