The Fed

[YoursTruly]

Just to give an example of how deeply corrupted our system of government is, here's a question about the fed that opened my eye's several years ago.

The US constitution grants the congress the authority to create money without interest. So why does it borrow from the Federal Reserve, with interest. This was a question a 12yr old asked a politician several years ago. It's on Youtube. I've spent over and hour trying to find it. But it's either buried or they've removed it.
Update: I think this is the girl. (She's Canadian. But their system is about like ours)

 

[gipper]

End the Fed!

 

[Lesh]

Prior to the Fed we had full blown Depressions about every ten years

You want that again?

 

[gipper]

Prior to the Fed we had full blown Depressions about every ten years

You want that again?

And you think after the Fed we didn’t?

 

[YoursTruly]

End the Fed!

I agree. But it can't be done over night. It would have to be phased out over at least a decade. If we ended it abruptly, it would send this country into a depression. A long deep, dark one. And cause catastrophic damage to many of our allies economies.

But what we could do, is just stop borrowing from it, unless there's an actual emergency. And I mean a major emergency. Like a multi-state hurricane, or an attack from another superpower. Funding Israel or Ukraine wouldn't be considered an emergency (IMO)

But phasing it out by simply not using it, would be a great start.

 

[YoursTruly]

Prior to the Fed we had full blown Depressions about every ten years

You want that again?

To keep from depressions occurring, the government borrows trillions more. This causes the USD to lose it's value. Which causes inflation.

The Fed system isn't all bad. What makes it as bad as it is, is how much (and what for) they loan the government money. They'll loan the government money for anything. Gender studies in Pakistan. Welfare for people who just don't want to work.

The feds easy money and big spending politicians is the problem.

None the less, the question still remains. If the government has the authority to create money, interest free, why do they borrow it?

 

[Lesh]

To keep from depressions occurring, the government borrows trillions more. This causes the USD to lose it's value. Which causes inflation.

The Fed system isn't all bad. What makes it as bad as it is, is how much (and what for) they loan the government money. They'll loan the government money for anything. Gender studies in Pakistan. Welfare for people who just don't want to work.

The feds easy money and big spending politicians is the problem.

None the less, the question still remains. If the government has the authority to create money, interest free, why do they borrow it?

Again.. the Fed keeps us out of cyclical Depressions

 

[konradv]

And you think after the Fed we didn’t?

Not to the same extent, especially since the Great Depression.

 

[YoursTruly]

Again.. the Fed keeps us out of cyclical Depressions

Again, If the government has the authority to create money, interest free, why do they borrow it?

 

[konradv]

To keep from depressions occurring, the government borrows trillions more. This causes the USD to lose it's value. Which causes inflation.

The Fed system isn't all bad. What makes it as bad as it is, is how much (and what for) they loan the government money. They'll loan the government money for anything. Gender studies in Pakistan. Welfare for people who just don't want to work.

The feds easy money and big spending politicians is the problem.

None the less, the question still remains. If the government has the authority to create money, interest free, why do they borrow it?

Gender studies in Pakistan will hardly bankrupt us. What’s important to know is that is being used as propaganda that would end other more important initiatives. Some are trying to force a neo-isolationism that could lead to the kinds of wars we saw in the 20th century.

 

[konradv]

Again, If the government has the authority to create money, interest free, why do they borrow it?

Doesn’t just printing money instead of borrowing lead to runaway inflation?

 

[gipper]

Not to the same extent, especially since the Great Depression.

Except that the Great Depression and Great Recession occurred after the Fed was instituted, along with many small recessions and a dramatic drop in the valve of the dollar…and $32 TRILLION in debt.

Good job?

 

[konradv]

Except that the Great Depression and Great Recession occurred after the Fed was instituted, along with many small recessions and a dramatic drop in the valve of the dollar…and $32 TRILLION in debt.

Inflation will always be with us. We’re the strongest economy in the world and the ups and downs have been less severe. Debt will also always be a thing. The answer is growth, technology and education, not going back to the 19th century.

 

[TNHarley]

Inflation will always be with us.

Thats just what debt loving statists say.

 

[konradv]

Thats just what debt loving statists say.

It’s also the truth.

 

[gipper]

Inflation will always be with us. We’re the strongest economy in the world and the ups and downs have been less severe. Debt will also always be a thing. The answer is growth, technology and education, not going back to the 19th century.

Inflation was unheard of prior to and for a time after the Fed fucked things up.

 

[gipper]

It’s also the truth.

No it’s not.

 

[Harpy Eagle]

Again, If the government has the authority to create money, interest free, why do they borrow it?

Borrowing too much of it causes the value of the dollar to be lower, just printing it at will would do that 100 times over.

 

[konradv]

Inflation was unheard of prior to and for a time after the Fed fucked things up.

Inflation happens when too much money chases too few products. That situation did not originate with the Fed.

 

[gipper]

It’s also the truth.

We were the greatest creditor nation and now we’re the greatest debtor nation. Much of the blame for this resides with the Fed, along with FDR removing the gold standard and Nixon instituting fiat currency. Along with many dumb decisions by Congress.