Credible Argument for Keeping the Fed

[editec]

I dont have one, thought maybe someone else would.

If its aim is to keep the balance between the expanding (or contracting) amount of goods and services sold, plus all other assets and the amount of dollars those represent?

It's a good thing.

This is the basic theory of monetary policy.

Of course the potenital abuse of this power is most of the problem we're facing right now.

Why?

Because the FED's primary fudiciary responsibility is to protect its member banks, not the American people.

So let me recap

Yes, I think we need a FED capable of doing what our FED does.

No, I do not think the FED as currently consituted is our friend

 

[Dont Taz Me Bro]

Ben Bernanke should be in prison.

 

[Kevin_Kennedy]

The other option is to allow Congress to determine the money supply. That's a wrap.

That's exactly what I think....I find it ironic that libertarians want to give more power to federal government.

That last thing we need is politicians, who aren't always experts on monetary policy, playing politics with interest rates..

Except that's not the only option, and not what libertarians want to do. We want to let the market set interest rates, not the Congress. Letting Congress set them would still be central planning and would still cause bubbles.

 

[Kevin_Kennedy]

The Fed has a responsibility to maintain the value of the currency. The "dollar" is the stock in trade of the Fed and they no more want to create new dollars than does a corporation to issue new stock, because the net affect is to devalue or erode their stock in trade. If it weren't for the existence of the Fed, both monetary and fiscal policy would be in the province of the politicians, and if you think we can trust them to be responsible managers of both fiscal and monetary policy, I've got a bridge to sell you, because they have been fiscal failures.

The 2011 dollar is worth the same as $0.04 in 1913, the year the Fed was established. That's the opposite of maintaining the value of the dollar.

Inflation Calculator: Bureau of Labor Statistics

 

[Kevin_Kennedy]

That's exactly what I think....I find it ironic that libertarians want to give more power to federal government.

That last thing we need is politicians, who aren't always experts on monetary policy, playing politics with interest rates..

You mean like our constitution says? Maybe if it was still their job we could expect better qualified politicians? At that point people like Ron Paul become very appealing becuase they actually have a clue what theya re talking about.

The Feds been around for a long time, and America's had a nice run with it...Why now is it so crucial to get rid of it?

You think it makes sense to give more power and responsibility to government that can't even pass a budget?

A very nice run. Panic of 1920, the Great Depression, stagflation of the 1970's, dot-com bust, and the 2008 recession to name the big ones.

 

[Kevin_Kennedy]

The other option is to allow Congress to determine the money supply. That's a wrap.

No, the market would...just like it does the price of everything else.

The big Banks would have the control of the money supply, and in the free market, they don't have to act in America's best interest, but in their own best interest.

You think GS having all the say when it comes to money is in our best interest?

You either have an oligarchy controlling everything, government, or a hybrid of private sector and qualified economist civil servants like the fed....imo the fed would be the choice.

Not if you had competing currencies.

 

[8537]

The big Banks would have the control of the money supply, and in the free market, they don't have to act in America's best interest, but in their own best interest.

I disagree. The only reason we have big banks controlling so much of the industry now is BECAUSE of the Fed. There would be far more banks and far fewer, if any, 'too big to fail' banks without the Fed. So there's that.

So, before the Fed we had less concentration of bank control? I don't think that's right. That's how JP Morgan had the ability to bail out the economy in 1907.

 

[8537]

You mean like our constitution says? Maybe if it was still their job we could expect better qualified politicians? At that point people like Ron Paul become very appealing becuase they actually have a clue what theya re talking about.

The Feds been around for a long time, and America's had a nice run with it...Why now is it so crucial to get rid of it?

You think it makes sense to give more power and responsibility to government that can't even pass a budget?

A very nice run. Panic of 1920, the Great Depression, stagflation of the 1970's, dot-com bust, and the 2008 recession to name the big ones.

Is it your claim that the century that preceded 1913 had fewer panics and financial collapses?

 

[Serithi]

Ummm....Can't think of one.....Nope......

Hi... What does Credible Fed means? I could not understand about it much... Can someone tell me in more details?

 

[American Horse]

The Fed has a responsibility to maintain the value of the currency. The "dollar" is the stock in trade of the Fed and they no more want to create new dollars than does a corporation to issue new stock, because the net affect is to devalue or erode their stock in trade. If it weren't for the existence of the Fed, both monetary and fiscal policy would be in the province of the politicians, and if you think we can trust them to be responsible managers of both fiscal and monetary policy, I've got a bridge to sell you, because they have been fiscal failures.

The 2011 dollar is worth the same as $0.04 in 1913, the year the Fed was established. That's the opposite of maintaining the value of the dollar.

Inflation Calculator: Bureau of Labor Statistics

Who cares. The immediate affect is meaningless. The only effect we feel is from loss of value of savings, but when inflation is high over a period of time growth is greater and interest bearing accounts offset losses to savings. Owners of land and homeowners benefit from inflation as the mortgage loan (if there is one) becomes smaller in comparioson to the resale value. I'd rather see some inflation rather than zero inflation. We're not in charge of control of the world economy, and a lot of our inflation comes from our participation in a world economy. Better fiscal management could overcome the problems we experience; poor fiscal management drives poor monetary policy.

 

[The T]

Time for an Audit.

Decades PASTdue.

 

[WatertheTree]

The Fed has a responsibility to maintain the value of the currency. The "dollar" is the stock in trade of the Fed and they no more want to create new dollars than does a corporation to issue new stock, because the net affect is to devalue or erode their stock in trade. If it weren't for the existence of the Fed, both monetary and fiscal policy would be in the province of the politicians, and if you think we can trust them to be responsible managers of both fiscal and monetary policy, I've got a bridge to sell you, because they have been fiscal failures.

The 2011 dollar is worth the same as $0.04 in 1913, the year the Fed was established. That's the opposite of maintaining the value of the dollar.

Inflation Calculator: Bureau of Labor Statistics

Who cares. The immediate affect is meaningless. The only effect we feel is from loss of value of savings, but when inflation is high over a period of time growth is greater and interest bearing accounts offset losses to savings. Owners of land and homeowners benefit from inflation as the mortgage loan (if there is one) becomes smaller in comparioson to the resale value. I'd rather see some inflation rather than zero inflation. We're not in charge of control of the world economy, and a lot of our inflation comes from our participation in a world economy. Better fiscal management could overcome the problems we experience; poor fiscal management drives poor monetary policy.

You have some smarts to you and while I do not disagree with most everything else you said I find great fallacy in the above statement.

First of all the current state of the economy reminds us that we feel alot more then devaluation of savings. We feel devaluation of a paycheck while at the same time prices around us rise. That is why inflation destroys a middle class will eventually topple any government. Every society that is not 3rd world has welfare, as the situation worsens the poor become more and more dependant on the state while the middle class is continually pushed down untill they are as poor as the poor on state assistance. This is what we are witnessing today.

So far as growth is greater this agian is true, but it is only true because there is more money being dumped into the money supply. Same traffic, just higher numbers. Over time this situation continues untill you have the present situation, where there is a 59% increase in GDP contribution per capita, while wages are stagnate.

Interest in almost all savings accounts do not come anywhere close to inflation. Saving money in this monetary system is utterly pointless unless your saving for the short term. The best thing you can do is put your money to work for you and how you see the returns faster then you see inflation. They say we are at 2% but that is a LIE. just look around you. My god, most people make less money then there parents did and EVERYTHING is 2-3 times as much money.

 

[The T]

The 2011 dollar is worth the same as $0.04 in 1913, the year the Fed was established. That's the opposite of maintaining the value of the dollar.

Inflation Calculator: Bureau of Labor Statistics

Who cares. The immediate affect is meaningless. The only effect we feel is from loss of value of savings, but when inflation is high over a period of time growth is greater and interest bearing accounts offset losses to savings. Owners of land and homeowners benefit from inflation as the mortgage loan (if there is one) becomes smaller in comparioson to the resale value. I'd rather see some inflation rather than zero inflation. We're not in charge of control of the world economy, and a lot of our inflation comes from our participation in a world economy. Better fiscal management could overcome the problems we experience; poor fiscal management drives poor monetary policy.

You have some smarts to you and while I do not disagree with most everything else you said I find great fallacy in the above statement.

First of all the current state of the economy reminds us that we feel alot more then devaluation of savings. We feel devaluation of a paycheck while at the same time prices around us rise. That is why inflation destroys a middle class will eventually topple any government. Every society that is not 3rd world has welfare, as the situation worsens the poor become more and more dependant on the state while the middle class is continually pushed down untill they are as poor as the poor on state assistance. This is what we are witnessing today.

So far as growth is greater this agian is true, but it is only true because there is more money being dumped into the money supply. Same traffic, just higher numbers. Over time this situation continues untill you have the present situation, where there is a 59% increase in GDP contribution per capita, while wages are stagnate.

Interest in almost all savings accounts do not come anywhere close to inflation. Saving money in this monetary system is utterly pointless unless your saving for the short term. The best thing you can do is put your money to work for you and how you see the returns faster then you see inflation. They say we are at 2% but that is a LIE. just look around you. My god, most people make less money then there parents did and EVERYTHING is 2-3 times as much money.

Why does the Government feel the need to tinker with economic Liberty?

 

[WatertheTree]

Who cares. The immediate affect is meaningless. The only effect we feel is from loss of value of savings, but when inflation is high over a period of time growth is greater and interest bearing accounts offset losses to savings. Owners of land and homeowners benefit from inflation as the mortgage loan (if there is one) becomes smaller in comparioson to the resale value. I'd rather see some inflation rather than zero inflation. We're not in charge of control of the world economy, and a lot of our inflation comes from our participation in a world economy. Better fiscal management could overcome the problems we experience; poor fiscal management drives poor monetary policy.

You have some smarts to you and while I do not disagree with most everything else you said I find great fallacy in the above statement.

First of all the current state of the economy reminds us that we feel alot more then devaluation of savings. We feel devaluation of a paycheck while at the same time prices around us rise. That is why inflation destroys a middle class will eventually topple any government. Every society that is not 3rd world has welfare, as the situation worsens the poor become more and more dependant on the state while the middle class is continually pushed down untill they are as poor as the poor on state assistance. This is what we are witnessing today.

So far as growth is greater this agian is true, but it is only true because there is more money being dumped into the money supply. Same traffic, just higher numbers. Over time this situation continues untill you have the present situation, where there is a 59% increase in GDP contribution per capita, while wages are stagnate.

Interest in almost all savings accounts do not come anywhere close to inflation. Saving money in this monetary system is utterly pointless unless your saving for the short term. The best thing you can do is put your money to work for you and how you see the returns faster then you see inflation. They say we are at 2% but that is a LIE. just look around you. My god, most people make less money then there parents did and EVERYTHING is 2-3 times as much money.

Why does the Government feel the need to tinker with economic Liberty?

Because our Government is owned by an Oligarchy of soulless courporations and rich asshats.

 

[eflatminor]

You have some smarts to you and while I do not disagree with most everything else you said I find great fallacy in the above statement.

First of all the current state of the economy reminds us that we feel alot more then devaluation of savings. We feel devaluation of a paycheck while at the same time prices around us rise. That is why inflation destroys a middle class will eventually topple any government. Every society that is not 3rd world has welfare, as the situation worsens the poor become more and more dependant on the state while the middle class is continually pushed down untill they are as poor as the poor on state assistance. This is what we are witnessing today.

So far as growth is greater this agian is true, but it is only true because there is more money being dumped into the money supply. Same traffic, just higher numbers. Over time this situation continues untill you have the present situation, where there is a 59% increase in GDP contribution per capita, while wages are stagnate.

Interest in almost all savings accounts do not come anywhere close to inflation. Saving money in this monetary system is utterly pointless unless your saving for the short term. The best thing you can do is put your money to work for you and how you see the returns faster then you see inflation. They say we are at 2% but that is a LIE. just look around you. My god, most people make less money then there parents did and EVERYTHING is 2-3 times as much money.

Why does the Government feel the need to tinker with economic Liberty?

Because our Government is owned by an Oligarchy of soulless courporations and rich asshats.

And the only way those soulless rich can own the government is to buy off politicians that are willing to meddle in business and the economy...exactly the kind of central planners you insist on voting for. You confuse CRONY capitalism with real capitalism. The way to stop that is to elect politicians that refuse to meddle in markets outside of their Constitutional restraints.

Logic and reason...ain't it a bitch.

 

[Paulie]

You're not a true free market advocate if you support the Fed.

So put your money where your mouth is or shut the fuck up about the "free market".

 

[Kevin_Kennedy]

The Feds been around for a long time, and America's had a nice run with it...Why now is it so crucial to get rid of it?

You think it makes sense to give more power and responsibility to government that can't even pass a budget?

A very nice run. Panic of 1920, the Great Depression, stagflation of the 1970's, dot-com bust, and the 2008 recession to name the big ones.

Is it your claim that the century that preceded 1913 had fewer panics and financial collapses?

Not less, but none were comparable to any of the ones listed. However, we can point to the government tampering with the interest rates that caused those panics before the Fed, just as the Fed does now.

 

[Kevin_Kennedy]

The Fed has a responsibility to maintain the value of the currency. The "dollar" is the stock in trade of the Fed and they no more want to create new dollars than does a corporation to issue new stock, because the net affect is to devalue or erode their stock in trade. If it weren't for the existence of the Fed, both monetary and fiscal policy would be in the province of the politicians, and if you think we can trust them to be responsible managers of both fiscal and monetary policy, I've got a bridge to sell you, because they have been fiscal failures.

The 2011 dollar is worth the same as $0.04 in 1913, the year the Fed was established. That's the opposite of maintaining the value of the dollar.

Inflation Calculator: Bureau of Labor Statistics

Who cares. The immediate affect is meaningless. The only effect we feel is from loss of value of savings, but when inflation is high over a period of time growth is greater and interest bearing accounts offset losses to savings. Owners of land and homeowners benefit from inflation as the mortgage loan (if there is one) becomes smaller in comparioson to the resale value. I'd rather see some inflation rather than zero inflation. We're not in charge of control of the world economy, and a lot of our inflation comes from our participation in a world economy. Better fiscal management could overcome the problems we experience; poor fiscal management drives poor monetary policy.

High inflation doesn't cause growth, it causes bubbles.

 

[8537]

A very nice run. Panic of 1920, the Great Depression, stagflation of the 1970's, dot-com bust, and the 2008 recession to name the big ones.

Is it your claim that the century that preceded 1913 had fewer panics and financial collapses?

Not less, but none were comparable to any of the ones listed. However, we can point to the government tampering with the interest rates that caused those panics before the Fed, just as the Fed does now.

The panic of 1837 was far worse than the 1970's. 1873 and 1901 were worse still. And 1907 was even worse.

 

[American Horse]

The 2011 dollar is worth the same as $0.04 in 1913, the year the Fed was established. That's the opposite of maintaining the value of the dollar.

Inflation Calculator: Bureau of Labor Statistics

Who cares. The immediate affect is meaningless. The only effect we feel is from loss of value of savings, but when inflation is high over a period of time growth is greater and interest bearing accounts offset losses to savings. Owners of land and homeowners benefit from inflation as the mortgage loan (if there is one) becomes smaller in comparioson to the resale value. I'd rather see some inflation rather than zero inflation. We're not in charge of control of the world economy, and a lot of our inflation comes from our participation in a world economy. Better fiscal management could overcome the problems we experience; poor fiscal management drives poor monetary policy.

High inflation doesn't cause growth, it causes bubbles.

Isn't the converse actually the case?