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Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
16,259 posts, read 24,766,887 times
Reputation: 3587
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The Depression happened because the government controlled none of the economy and speculation was rampant in "the roaring 20s". The government now controls the economy and while business cycles happen the government is able to control the fall. The Federal Reserve has God like powers over the US economy and- by entension- the world economy which is much like a train with us being the engine that drives it all. The Federal Reserve can cut interest rates- as they did this week and will do again next week. In fact they can cut them all the way to zero if they wish. They can also print more money and flood the nation's banks with trillions of dollars almost overnight.
The Depression happened because the government controlled none of the economy and speculation was rampant in "the roaring 20s". The government now controls the economy and while business cycles happen the government is able to control the fall. The Federal Reserve has God like powers over the US economy and- by entension- the world economy which is much like a train with us being the engine that drives it all. The Federal Reserve can cut interest rates- as they did this week and will do again next week. In fact they can cut them all the way to zero if they wish. They can also print more money and flood the nation's banks with trillions of dollars almost overnight.
This would cause hyperinflation, how can it help? The dollar would be worthless and other currencies would benefit. Why would investors continue to accept rapidly falling dollars, when they could go for Yuan, or Euros? I believe that "business cycles" are caused by central banking. The worst part is how central banking really is the mechanism to transfer wealth from the poor to the rich.
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
16,259 posts, read 24,766,887 times
Reputation: 3587
Quote:
Originally Posted by tallrick
This would cause hyperinflation, how can it help? The dollar would be worthless and other currencies would benefit. Why would investors continue to accept rapidly falling dollars, when they could go for Yuan, or Euros? I believe that "business cycles" are caused by central banking. The worst part is how central banking really is the mechanism to transfer wealth from the poor to the rich.
Why are investors accepting the rapidly falling dollar now? Perhaps because we are the most economically powerful country on the Earth and nobody is in 2nd place! The value of the dollar vs the Euro has fallen alot YET other nations still crave the US dollar. When the Arabs start selling oil in Euros, then I would worry but until then the Fed can print all the cash it wants!
This would cause hyperinflation, how can it help? The dollar would be worthless and other currencies would benefit. Why would investors continue to accept rapidly falling dollars, when they could go for Yuan, or Euros? I believe that "business cycles" are caused by central banking. The worst part is how central banking really is the mechanism to transfer wealth from the poor to the rich.
I believe so too.They engineered the dot.com bust and tech bust and after that the housing boom with 1% interest rates.Now it`s time to lower the % back to where they were.Gotta blame the builders too,but since there is was other way to make money...
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