End the Fed? Instead, End Bad Fiscal and Regulatory Policy

Discussion in 'Economy' started by Toro, Feb 12, 2011.

  1. Toro
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    Toro Diamond Member

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    From a speech by Richard Fisher, head of the Dallas Fed.

    A Need for Innovative Fiscal Policy - Richard Fisher Speeches, 2-8-10 - News & Events - FRB Dallas
     
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  2. Oddball
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    Oddball BANNED Supporting Member

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    Would work, if only you could put computers and/or Vulcans in charge of the Fed.

    But as long as you have imperfect and vulnerable humans as the "Monopoly bankers", so to speak, there will be chicanery in the system.

    The only system that maintains the most practicable (not to be mistaken for perfect) level of honesty is specie as money.
     
  3. Paulie
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    Paulie Platinum Member

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    I'm not naive enough to assume Congress doesn't already know the Fed will monetize the debt whenever they feel it's necessary.
     
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  4. Mad Scientist
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    Mad Scientist Deplorable Gold Supporting Member Supporting Member

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    Looks like the Fed is getting spooked. "Uh, it's not our fault we printed trillions and gave it to off shore banks. It's Congress' fault! Yeah that's the ticket!"

    Audit the Fed. Don't renew the charter. Put responsibility for the money supply back in Congress' hands where it belongs.
     
  5. Modbert
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    Modbert Daydream Believer Supporting Member

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    Just where I would want responsibility for the money supply to be, in the hands of Nancy Pelosi, Harry Reid, Eric Cantor, and John Boehner. :eusa_eh:
     
  6. Flopper
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    Flopper Gold Member

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    I'm no fan of the fed, they consistently make the wrong calls on the economy. However, congress is driving the country deeper and deeper into a financial hole, not by mistake but intentionally. So when members of Congress call to abolish the fed, it's just a diversion from where the real problem lies.
     
  7. Mad Scientist
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    Mad Scientist Deplorable Gold Supporting Member Supporting Member

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    The Fed prints trillions of dollars for banks (Quantative Easing) and puts the taxpayers on the hook for the money and the resulting inflation. We get screwed twice! No say in it, no lubrication, no "thank you" kiss. Just Bankers telling us it's none of our business.

    At least when Congress handles it there will open and televised debate.
     
  8. Modbert
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    :lol: Practicing your standup?
     
  9. Mad Scientist
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    They have this newfangled TV channel called C-Span. Besides, Nancy is no longer in charge of the House.
     
  10. Flopper
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    Flopper Gold Member

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    The fed can stimulate a sluggish economy by increase the money supply. There are 3 ways of doing it and all are inflationary:
    print more notes
    increase lending
    buy government securities.

    The fed believes that inflation caused by buying government securities will be mostly offset by the deflationary forces due to the recession. Since the effects of the action of the fed may not be felt for a number of months after the action, it is very difficulty to determine the right amount stimulus without setting off an inflationary spiral or under-stimulating the economy. I think the fed is being over zealous with this action. It will increases the money supply by about 900 billion.
     

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