Central Banking is Socialism

[Natural Citizen]

It's a rather timely op-ed, I think. Particularly since so much of the recent discussion involving the market problems is so misguided.


Anyway...

Last week, the Federal Reserve responded to Wall Street’s coronavirus panic with an “emergency” interest rate cut. This emergency cut failed to revive the stock market, leading to predictions that the Fed will again cut rates later this month. More rate cuts would drive interest rates to near, or even below, zero. Lowering interest rates punishes people for saving, thus encouraging consumers and businesses to spend every penny they make. This may give the economy a short-term boost. But, it inhibits long-term economic growth by depleting the savings necessary for investments in businesses and jobs. The result of this policy will be more pressure on the Fed to indefinitely maintain low interest rates and on the Congress and president to create another explosion of government “stimulus” spending.

The essence of socialist economics is government allocation of resources either by seizing direct control of the “means of production” or by setting prices business can charge. Federal Reserve manipulation of interest rates is an attempt to set the price of money. Federal Reserve attempts to set interest rates distort the signals sent by the rates to investors and business. This results in a Fed-created boom, which is inevitably followed by a Fed-created bust.

Boston Federal Reserve President Eric Rosengren has suggested that Congress allow the Federal Reserve to add assets of private companies to the Fed’s already large balance sheet. Allowing the central bank to buy assets of, and thus assume a partial ownership interest in, private companies would give the Federal Reserve even greater influence over the economy.

Economic elites benefit when the Federal Reserve pumps new money into the economy because they have access to the money created before there are widespread price increases. Artificially low interest rates also facilitate the growth of the welfare-warfare state. The Federal Reserve’s inflationary policies harm the average American by eroding the dollar’s purchasing power. This forces consumers to rely on credit cards and other forms of debt to maintain their standard of living...

Continued - Central Banking is Socialism

 

[MisterBeale]

 

[westwall]

It's a rather timely op-ed, I think. Particularly since so much of the recent discussion involving the market problems is so misguided.


Anyway...

Last week, the Federal Reserve responded to Wall Street’s coronavirus panic with an “emergency” interest rate cut. This emergency cut failed to revive the stock market, leading to predictions that the Fed will again cut rates later this month. More rate cuts would drive interest rates to near, or even below, zero. Lowering interest rates punishes people for saving, thus encouraging consumers and businesses to spend every penny they make. This may give the economy a short-term boost. But, it inhibits long-term economic growth by depleting the savings necessary for investments in businesses and jobs. The result of this policy will be more pressure on the Fed to indefinitely maintain low interest rates and on the Congress and president to create another explosion of government “stimulus” spending.

The essence of socialist economics is government allocation of resources either by seizing direct control of the “means of production” or by setting prices business can charge. Federal Reserve manipulation of interest rates is an attempt to set the price of money. Federal Reserve attempts to set interest rates distort the signals sent by the rates to investors and business. This results in a Fed-created boom, which is inevitably followed by a Fed-created bust.

Boston Federal Reserve President Eric Rosengren has suggested that Congress allow the Federal Reserve to add assets of private companies to the Fed’s already large balance sheet. Allowing the central bank to buy assets of, and thus assume a partial ownership interest in, private companies would give the Federal Reserve even greater influence over the economy.

Economic elites benefit when the Federal Reserve pumps new money into the economy because they have access to the money created before there are widespread price increases. Artificially low interest rates also facilitate the growth of the welfare-warfare state. The Federal Reserve’s inflationary policies harm the average American by eroding the dollar’s purchasing power. This forces consumers to rely on credit cards and other forms of debt to maintain their standard of living...

Continued - Central Banking is Socialism

In many ways it is. That's why the Founders spoke against a central bank that was private.

 

[MisterBeale]

 

[MisterBeale]

 

[sparky]

y'all do know.....you guys are all guilty of educating a redneck

~S~

 

[MisterBeale]

y'all do know.....you guys are all guilty of educating a redneck

~S~

Shit, you should already know this. Every redneck owns a copy of Monopoly.

 

[sparky]

Actually, i'm not a quick study.... it took me a long long time to get it Mr Beale

reduced to simplicity, it's socialism for the banksters, capitalism for the rest of us

more intricate would be getting one's head around the creation of valuation ,along with the risk factors fueling it

but hey, if i can eventually get it, why is all this 5th page news?

 

[EdwardBaiamonte]

Central Banking is Socialism

1) What you mean to say is that central banking is somewhat socialistic while our economy is mostly capitalistic

2) also there seems to be very little downside to low interest

 

[dblack]

Only one of those should exist.

 

[westwall]

Only one of those should exist.

Agreed. But the NSA, should still exist as part of the Dept of Defense.

 

[Natural Citizen]

1) What you mean to say is that central banking is somewhat socialistic while our economy is mostly capitalistic

Don't tell me what I mean to say.

2) also there seems to be very little downside to low interest

These are artificially low rates. A complete distortion. Do yourself a favor and study economic theory and monetary policy.

 

[Toddsterpatriot]

It's a rather timely op-ed, I think. Particularly since so much of the recent discussion involving the market problems is so misguided.


Anyway...

Last week, the Federal Reserve responded to Wall Street’s coronavirus panic with an “emergency” interest rate cut. This emergency cut failed to revive the stock market, leading to predictions that the Fed will again cut rates later this month. More rate cuts would drive interest rates to near, or even below, zero. Lowering interest rates punishes people for saving, thus encouraging consumers and businesses to spend every penny they make. This may give the economy a short-term boost. But, it inhibits long-term economic growth by depleting the savings necessary for investments in businesses and jobs. The result of this policy will be more pressure on the Fed to indefinitely maintain low interest rates and on the Congress and president to create another explosion of government “stimulus” spending.

The essence of socialist economics is government allocation of resources either by seizing direct control of the “means of production” or by setting prices business can charge. Federal Reserve manipulation of interest rates is an attempt to set the price of money. Federal Reserve attempts to set interest rates distort the signals sent by the rates to investors and business. This results in a Fed-created boom, which is inevitably followed by a Fed-created bust.

Boston Federal Reserve President Eric Rosengren has suggested that Congress allow the Federal Reserve to add assets of private companies to the Fed’s already large balance sheet. Allowing the central bank to buy assets of, and thus assume a partial ownership interest in, private companies would give the Federal Reserve even greater influence over the economy.

Economic elites benefit when the Federal Reserve pumps new money into the economy because they have access to the money created before there are widespread price increases. Artificially low interest rates also facilitate the growth of the welfare-warfare state. The Federal Reserve’s inflationary policies harm the average American by eroding the dollar’s purchasing power. This forces consumers to rely on credit cards and other forms of debt to maintain their standard of living...

Continued - Central Banking is Socialism

In many ways it is. That's why the Founders spoke against a central bank that was private.

That's why the Founders spoke against a central bank that was private.

The Fed isn't private.

 

[westwall]

It's a rather timely op-ed, I think. Particularly since so much of the recent discussion involving the market problems is so misguided.


Anyway...

Last week, the Federal Reserve responded to Wall Street’s coronavirus panic with an “emergency” interest rate cut. This emergency cut failed to revive the stock market, leading to predictions that the Fed will again cut rates later this month. More rate cuts would drive interest rates to near, or even below, zero. Lowering interest rates punishes people for saving, thus encouraging consumers and businesses to spend every penny they make. This may give the economy a short-term boost. But, it inhibits long-term economic growth by depleting the savings necessary for investments in businesses and jobs. The result of this policy will be more pressure on the Fed to indefinitely maintain low interest rates and on the Congress and president to create another explosion of government “stimulus” spending.

The essence of socialist economics is government allocation of resources either by seizing direct control of the “means of production” or by setting prices business can charge. Federal Reserve manipulation of interest rates is an attempt to set the price of money. Federal Reserve attempts to set interest rates distort the signals sent by the rates to investors and business. This results in a Fed-created boom, which is inevitably followed by a Fed-created bust.

Boston Federal Reserve President Eric Rosengren has suggested that Congress allow the Federal Reserve to add assets of private companies to the Fed’s already large balance sheet. Allowing the central bank to buy assets of, and thus assume a partial ownership interest in, private companies would give the Federal Reserve even greater influence over the economy.

Economic elites benefit when the Federal Reserve pumps new money into the economy because they have access to the money created before there are widespread price increases. Artificially low interest rates also facilitate the growth of the welfare-warfare state. The Federal Reserve’s inflationary policies harm the average American by eroding the dollar’s purchasing power. This forces consumers to rely on credit cards and other forms of debt to maintain their standard of living...

Continued - Central Banking is Socialism

In many ways it is. That's why the Founders spoke against a central bank that was private.

That's why the Founders spoke against a central bank that was private.

The Fed isn't private.

The banks are publicly traded, but they aren't run by the government.

 

[Toddsterpatriot]

It's a rather timely op-ed, I think. Particularly since so much of the recent discussion involving the market problems is so misguided.


Anyway...

Last week, the Federal Reserve responded to Wall Street’s coronavirus panic with an “emergency” interest rate cut. This emergency cut failed to revive the stock market, leading to predictions that the Fed will again cut rates later this month. More rate cuts would drive interest rates to near, or even below, zero. Lowering interest rates punishes people for saving, thus encouraging consumers and businesses to spend every penny they make. This may give the economy a short-term boost. But, it inhibits long-term economic growth by depleting the savings necessary for investments in businesses and jobs. The result of this policy will be more pressure on the Fed to indefinitely maintain low interest rates and on the Congress and president to create another explosion of government “stimulus” spending.

The essence of socialist economics is government allocation of resources either by seizing direct control of the “means of production” or by setting prices business can charge. Federal Reserve manipulation of interest rates is an attempt to set the price of money. Federal Reserve attempts to set interest rates distort the signals sent by the rates to investors and business. This results in a Fed-created boom, which is inevitably followed by a Fed-created bust.

Boston Federal Reserve President Eric Rosengren has suggested that Congress allow the Federal Reserve to add assets of private companies to the Fed’s already large balance sheet. Allowing the central bank to buy assets of, and thus assume a partial ownership interest in, private companies would give the Federal Reserve even greater influence over the economy.

Economic elites benefit when the Federal Reserve pumps new money into the economy because they have access to the money created before there are widespread price increases. Artificially low interest rates also facilitate the growth of the welfare-warfare state. The Federal Reserve’s inflationary policies harm the average American by eroding the dollar’s purchasing power. This forces consumers to rely on credit cards and other forms of debt to maintain their standard of living...

Continued - Central Banking is Socialism

In many ways it is. That's why the Founders spoke against a central bank that was private.

That's why the Founders spoke against a central bank that was private.

The Fed isn't private.

The banks are publicly traded, but they aren't run by the government.

You said central bank. The Fed is not publicly traded.

 

[sparky]

Our Federal Reserve is neither federal, nor a reserve.

They are private banking industry comprised of a dozen 'member banks' each having geographical designates.

Our government no longer controls them, because our government is so hopelessly in debt, sadly it's much the other way 'round....

Objectively, allowing this industry monetary responsibility in 1913, has resulted in them being in control of marco economic structure

and some want me to think this is 'capitalism'.....?

~S~

 

[Toddsterpatriot]

Our Federal Reserve is neither federal, nor a reserve.

They are private banking industry comprised of a dozen 'member banks' each having geographical designates.

Our government no longer controls them, because our government is so hopelessly in debt, sadly it's much the other way 'round....

Objectively, allowing this industry monetary responsibility in 1913, has resulted in them being in control of marco economic structure

and some want me to think this is 'capitalism'.....?

~S~

Our Federal Reserve is neither federal, nor a reserve.

9 words with 2 errors. Neat!

 

[MisterBeale]

Actually, i'm not a quick study.... it took me a long long time to get it Mr Beale

reduced to simplicity, it's socialism for the banksters, capitalism for the rest of us

more intricate would be getting one's head around the creation of valuation ,along with the risk factors fueling it

but hey, if i can eventually get it, why is all this 5th page news?

Governments own the schools, the folks in charge of the system own the government.

The arguments between the "capitalists" and the "socialists" is a false dilemma in the corporate owned press, b/c the folks that own the FED know they will still control everything. If it is allowed on the TEE VEE, or sharable in a link on the major platforms, chances are, it will not harm their interests.

This is why no one bothers to teach, nor to understand this information in the schools or universities, unless they are actually going to become servants of the system.

Of course, ignore the investment bankers and fund managers on the this thread, they will go kicking and screaming, telling everyone they are wrong.

Our politicians are paid campaign contributions by the fat cats that "own" the reserve banks, and then the politicians put the men in charge of the boards who fund their campaigns.

We are supposed to believe our politicians are the ones in charge, when in reality, it is the other way around. Sure, Trump has went through a crap load of cabinet members, but then ones the tend to stay, are usually treasury and commerce. These will be the ones pulling the strings. . . unless there are more important assignments or better opportunities. That's the only time they will leave. The two parties have no disagreement on monetary policy, not really.

We are all Keynesians now - Wikipedia

It's more like. . . instead of the folks that argue with the forum that the FED isn't a private entity, they should have to prove that, although we have a vote, which gives us the illusion that our government is public. . .

b/c of that court decision, Citizens United, IMO, these fools should have to prove that our Government isn't a private entity.

 

[EdwardBaiamonte]

Don't tell me what I mean to say.
.

You said central banking was socialism when in reality socialism is when central govt owns major industries. Now do you understand?

 

[Natural Citizen]

.

You said central banking was socialism when in reality socialism is when central govt owns major industries. Now do you understand?[/QUOTE]

Way ahead of ya, Eddie. Way, way ahead of ya.