Credible Argument for Keeping the Fed

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WatertheTree

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The argument used to enact the Federal Reserve was that it would bring stability to the economy, but all it has brought us is booms and busts. Now the entire economy is so inflated that everyone is scared to death of the collapse. Well what is a collapse? Its the market rejecting the inflation and finding equilibrium.

In the mean time we spend our lives searching for dollars so its our debts getting repaid to the banks instead of someone elses. Our system is designed to drive inequlity by pitting the population agianst each other with a constant demand for more dollars then what is in the money supply.
 

Oddball

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The argument used to enact the Federal Reserve was that it would bring stability to the economy, but all it has brought us is booms and busts. Now the entire economy is so inflated that everyone is scared to death of the collapse. Well what is a collapse? Its the market rejecting the inflation and finding equilibrium.

In the mean time we spend our lives searching for dollars so its our debts getting repaid to the banks instead of someone elses. Our system is designed to drive inequlity by pitting the population agianst each other with a constant demand for more dollars then what is in the money supply.
Yeah, but the east coast banksters and their insider flunkies are wealthy beyond avarice! :rolleyes:
 

Intense

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The argument used to enact the Federal Reserve was that it would bring stability to the economy, but all it has brought us is booms and busts. Now the entire economy is so inflated that everyone is scared to death of the collapse. Well what is a collapse? Its the market rejecting the inflation and finding equilibrium.

In the mean time we spend our lives searching for dollars so its our debts getting repaid to the banks instead of someone elses. Our system is designed to drive inequlity by pitting the population agianst each other with a constant demand for more dollars then what is in the money supply.
Yeah, but the east coast banksters and their insider flunkies are wealthy beyond avarice! :rolleyes:
A whole new aspect to knowing what's going to happen before it actually does. .... Nah.... Our Government would Never do anything like that, right? ...... Echo......Echo..... :eusa_whistle:
 

Intense

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I think the Federal Reserve needs to be more transparent, probably about as much as the Federal Reserve thinks it needs to act in secret.
 

Avorysuds

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While I don't think we can or should just end the FED point blank, unless you want a Depression... I think it should open it's book fully. End the Fed if needed later when we are not in a recession/depression imo. Start the process now tho.
 

Rocko

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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..
 

Avorysuds

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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..
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.
 

American Horse

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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.
 

Rocko

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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..
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?
 

eflatminor

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I dont have one, thought maybe someone else would.
My argument for the Fed is that the Fed should exist, but not to enact price controls over the cost of money (the interest rate), but for Cheetos. Yes, that's it. We need price controls for Cheetos! Why? Cause who doesn't like Cheetos???
 

Rocko

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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.
 
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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 market already determines the value of the dollar. That won't change if you end the Federal Reserve.

And without the Fed, Congress will determine the monetary base.
 

Rocko

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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 market already determines the value of the dollar. That won't change if you end the Federal Reserve.

And without the Fed, Congress will determine the monetary base.
The fed's policies have alot to do with the direction of the dollar.

With the fed setting artifically low interest rates, and with quantitative easing....I think the intention of the fed is to have a weaker dollar, so exports pick up, and lending is stimulated by cheap money...
 

eflatminor

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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.

More importantly, maintaining the money supply is a simple response to market demand. MANIPULATING the money supply to create on-going inflation is the problem. Of course, when we take that power away from the Fed, we can't just give it to another entity. Again, the MARKET should determine interest rates, not a conglomeration of banks backed by taxpayer dollars. End the Fed!
 

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