Federal Reserve Should Become A Public Institution

[eflatminor]

Central price controls are a stupid idea.

Is that why every nation on earth except maybe Monaco uses a central bank?

No, they use a central bank because it acts as an ATM machine for entitlement programs and wars. Imagine if politicians had to actually PAY for their programs before putting them into law. We'd have a lot less debt for future generations and a lot fewer entitlement programs you Conservative rightly despise.

Lastly, it would not be "every nation on earth" that uses a central bank that is of concern, but only those nations that actually print their own money. It's when central banks print money on demand and attempt to control the price of money that we object.

 

[SniperFire]

Central price controls are a stupid idea.

Is that why every nation on earth except maybe Monaco uses a central bank?

No, they use a central bank because it acts as an ATM machine for entitlement programs and wars.

Because you say so, derp?

 

[eflatminor]

Is that why every nation on earth except maybe Monaco uses a central bank?

No, they use a central bank because it acts as an ATM machine for entitlement programs and wars.

Because you say so, derp?

No, because this is what history has demonstrated.

If you are in support of central price controls, make your case. Please list everything you believe the price of which should be controlled by the federal government. The price of money is is one...what else?

 

[SniperFire]

No, they use a central bank because it acts as an ATM machine for entitlement programs and wars.

Because you say so, derp?

No, because this is what history has demonstrated.

Wrong. History has demonstrated that the entire fucking world uses central banking for many, many reasons.

 

[eflatminor]

Because you say so, derp?

No, because this is what history has demonstrated.

Wrong. History has demonstrated that the entire fucking world uses central banking for many, many reasons.

Please tell us what those reasons are beyond the obvious ability to allow politicians to fund their programs and wars.

Again, please list all of the products and services whose prices you believe should be controlled by the federal government. I'm truly interested.

 

[SniperFire]

No, because this is what history has demonstrated.

Wrong. History has demonstrated that the entire fucking world uses central banking for many, many reasons.

Please tell us what those reasons are beyond the obvious ability to allow politicians to fund their programs and wars.

How about you go educate yourself on the role of sovereign central banking used by every nation in the world and then get back to us.

 

[eflatminor]

Wrong. History has demonstrated that the entire fucking world uses central banking for many, many reasons.

Please tell us what those reasons are beyond the obvious ability to allow politicians to fund their programs and wars.

How about you go educate yourself on the role of sovereign central banking used by every nation in the world and then get back to us.

I have advanced degrees in Economics and lifetime of study. Certainly, you can list your reasons in support of a central bank and price controls.

And again, if you support the central price control of money, what else should the government control the price of? Why do you keep avoiding this question?

 

[SniperFire]

Please tell us what those reasons are beyond the obvious ability to allow politicians to fund their programs and wars.

How about you go educate yourself on the role of sovereign central banking used by every nation in the world and then get back to us.

I have advanced degrees in Economics

LOL

Sure. We all have 15" dollywhackers and trophy wives on the Internet.


Get a refund.

 

[eflatminor]

How about you go educate yourself on the role of sovereign central banking used by every nation in the world and then get back to us.

I have advanced degrees in Economics

LOL

Sure. We all have 15" dollywhackers and trophy wives on the Internet.


Get a refund.

Wow. I never thought you were one to avoid a reasonable debate. Previously, I would have listed you among those here with a modicum of common sense and a willingness to engage in debate with logic, reason and specificity.

But today, nothing but dodges, emotional arguments and ad hominem attacks. That's just sad.

I'm disappointed but not shocked. Every time I think Conservatives are more reasonable than Progressives, someone like yourself comes along and proves me wrong. That's REALLY sad.

Oh well, I tried. All the best to you.

 

[SniperFire]

I have advanced degrees in Economics

LOL

Sure. We all have 15" dollywhackers and trophy wives on the Internet.


Get a refund.

Wow. I never thought you were one to avoid a reasonable debate. Previously, I would have listed you among those here with a modicum of common sense and a willingness to engage in debate with logic, reason and specificity.

But today, nothing but dodges, emotional arguments and ad hominem attacks. That's just sad.

I'm disappointed but not shocked. Every time I think Conservatives are more reasonable than Progressives, someone like yourself comes along and proves me wrong. That's REALLY sad.

Oh well, I tried. All the best to you.

Gold is just another fiat currency. You might as well trade in pork bellies if you don't understand the principles of central banking.

 

[g5000]

What? The longest they list in here is 3 years. I could drone on endlessly about each of these case in point, but Im not gonna. We've been in one recession after another since 1913.

Not nearly as frequently as before 1913. Facts are facts.


Gold also limits the money supply with the amount of gold you dig up. It does not keep up with a growing economy, is way too rigid, and is highly susceptible to speculators.

Not nearly as frequently?

And not nearly as deep.

I don't know why you picked 1913, but weo did not go off the gold standard until 1933.

Let's take a look at how deep the recessions/depressions were before and after that time.

1836-1838 recession, business activity shrank 32.8%.

Late 1839–late 1843 recession, shrank 34.3%.

1845–late 1846 recession, shrank 5.9%.

1847–48 recession, shrank 19.7%.

1853–54 recession, shrank 18.4%.

Panic of 1857, shrank 23.1%.

1860–61 recession, shrank 14.5%.

1869–70 recession, shrank 9.7%.

Panic of 1873 and the Long Depression (this was the Great Depression until 1930 and lasted six years), shrank 33.6%.

1882–85 recession, shrank 32.8%.

1887–88 recession, shrank 14.6%.

1890–91 recession, shrank 22.1%.

Panic of 1893, shrank 37.3%.

Panic of 1896, shrank 25.2%.

Panic of 1899–1900 recession, shrank 15.5%.

1902–04 recession, shrank 16.2%.

Panic of 1907, shrank 29.2%. It was this Panic which ultimately led to the creation of the Federal Reserve.

Panic of 1910–1911, shrank 14.7%.

Recession of 1913–1914, shrank 25.9%.

Post-World War I recession, shrank 24.5%.

Depression of 1920–21, shrank 38.1%.

1923–24 recession, shrank 25.4%.

1926–27 recession, shrank 12.2%.

Great Depression, shrank 26.7%.




And here is the point we came off the gold standard.

Those countries which came off the gold standard at this point first, recovered first.

Now notice the incredibly dramatic difference in GDP decline from this point forward:




Recession of 1937, shrank 18.2%.

Recession of 1945, shrank 12.7%.

Recession of 1949, shrank 1.7%.

Recession of 1953, shrank 2.6%.

Recession of 1958, shrank 3.7%.

Recession of 1960–61, shrank 1.6%.

Recession of 1969–70, shrank 0.6%.

1973–75 recession, shrank 3.2%.

1980 recession, shrank 2.2%.

Early 1980s recession, shrank 2.7%.

Early 1990s recession, shrank 1.4%.

Early 2000s recession, shrank 0.3%.

Late-2000s recession, 5.1%.



Now you can plainly see since we came off the gold standard in 1933, our recessions have been farther and farther apart, and much, much shallower and shorter.

Not only that, our poverty level plummetted to 15 percent of the population and has held steady there for more than half a century.


The gold standard clearly creates massive economic instability.

 

[g5000]

It's when central banks print money on demand and attempt to control the price of money that we object.

The perfect is the enemy of the good.

I would much rather have a person who understands the mechanics of the economy at the controls of our currency than some clueless demogogues in Congress who will print money to get re-elected and debase the currency to the level of Zimbabwe.

Is the Federal Reserve perfect? No. Does the Federal Reserve do a better job than anyone else can? Yes.

It's kind of like what Churchill said about democracy. A central bank is the worst form of economic control, except for all the others that have been tried.

 

[TruthSeeker56]

Wouldn’t it make common sense to have the Federal Reserve absorbed by the Treasury Department (perhaps), and become a public institution that is run (openly) by mostly elected officials?

Are you joking? Would you really want a politician's hands anywhere near the currency printing press in an election year?

No fiat money never works no matter who is at the print press. We need an anchor to our currency. Gold is the best one to date in history and it needs to be restored.

The problem with going back to the gold standard is that there is not enough gold on planet Earth, either mined or unmined, to "cover" the debt in the United States.......never mind the rest of the world.

The ONLY alternative to the paper and ink fiat currency that we now use is to implement a "hybrid" gold/silver/platinum standard.

Unfortunately, there aren't anywhere close to enough politicians in this country with big enough testicles and the courage to dare to propose such a transition, because there aren't anywhere near enough politicians who believe in implementing a "debt-free" government.

Thus, the rest of us will be left holding the bag..........a bagful of useless paper funny money.

 

[Flopper]

Central price controls are a stupid idea.

Is that why every nation on earth except maybe Monaco uses a central bank?

No, they use a central bank because it acts as an ATM machine for entitlement programs and wars. Imagine if politicians had to actually PAY for their programs before putting them into law. We'd have a lot less debt for future generations and a lot fewer entitlement programs you Conservative rightly despise.

Lastly, it would not be "every nation on earth" that uses a central bank that is of concern, but only those nations that actually print their own money. It's when central banks print money on demand and attempt to control the price of money that we object.

Central banking is simply a fact of life. Debating the need is not worth the effort.

 

[dilloduck]

It's when central banks print money on demand and attempt to control the price of money that we object.

The perfect is the enemy of the good.

I would much rather have a person who understands the mechanics of the economy at the controls of our currency than some clueless demogogues in Congress who will print money to get re-elected and debase the currency to the level of Zimbabwe.

Is the Federal Reserve perfect? No. Does the Federal Reserve do a better job than anyone else can? Yes.

It's kind of like what Churchill said about democracy. A central bank is the worst form of economic control, except for all the others that have been tried.

The Secretary of Treasury doesn't understand the mechanics of the economy ? Is America so stupid that we need to hire out a company to do our banking for us? If we elect people that are dishonest enough to fuck with our economy by printing money to get elected we may as well throw in the towel.

 

[g5000]

If we elect people that are dishonest enough to fuck with our economy by printing money to get elected we may as well throw in the towel.

Hello? You think we don't already live in a country where politicians spend taxpayers dollars to get re-elected?

Christ, Obama wrote all kinds of checks we couldn't cash when he was campaigning in 2008. So did Newt Gingrich at every whistle stop in this campaign. Who is in the audience today? Space program people? Okay. "I promise to build a colony on the fucking moon!"

And every Congressman promises to bring home the pork.

This is who you want controlling our currency?

Is America so stupid that we need to hire out a company to do our banking for us?

Yes.

If I take $10 and add 2 percent interest, compounded annually, what will it be worth in 20 years? Quickly now...

 

[Toro]

Why does the Federal Reserve – the body in charge of controlling the United States money supply – remain a private institution?

Wouldn’t it make common sense to have the Federal Reserve absorbed by the Treasury Department (perhaps), and become a public institution that is run (openly) by mostly elected officials? It just doesn’t make any sense to me why a private institution should be allowed to wield such extraordinary power without any solid checks and balances.

Thoughts?

It's a public institution in all but name only. Almost all it's profits are swept to the government and it's governance and mandate comes from the government.

 

[Oddball]

Why does the Federal Reserve – the body in charge of controlling the United States money supply – remain a private institution?

Wouldn’t it make common sense to have the Federal Reserve absorbed by the Treasury Department (perhaps), and become a public institution that is run (openly) by mostly elected officials? It just doesn’t make any sense to me why a private institution should be allowed to wield such extraordinary power without any solid checks and balances.

Thoughts?

Unconstitutional, per Article 1, Sections 8 & 10.

 

[TakeAStepBack]

Are you joking? Would you really want a politician's hands anywhere near the currency printing press in an election year?

No fiat money never works no matter who is at the print press. We need an anchor to our currency. Gold is the best one to date in history and it needs to be restored.

The problem with going back to the gold standard is that there is not enough gold on planet Earth, either mined or unmined, to "cover" the debt in the United States.......never mind the rest of the world.

The ONLY alternative to the paper and ink fiat currency that we now use is to implement a "hybrid" gold/silver/platinum standard.

Unfortunately, there aren't anywhere close to enough politicians in this country with big enough testicles and the courage to dare to propose such a transition, because there aren't anywhere near enough politicians who believe in implementing a "debt-free" government.

Thus, the rest of us will be left holding the bag..........a bagful of useless paper funny money.

The amount of gold has nothing to do with it. the entire world economy can be run on 1 ounce of gold. It is the price, not the amount that matters.

 

[TakeAStepBack]

Why does the Federal Reserve – the body in charge of controlling the United States money supply – remain a private institution?

Wouldn’t it make common sense to have the Federal Reserve absorbed by the Treasury Department (perhaps), and become a public institution that is run (openly) by mostly elected officials? It just doesn’t make any sense to me why a private institution should be allowed to wield such extraordinary power without any solid checks and balances.

Thoughts?

It's a public institution in all but name only. Almost all it's profits are swept to the government and it's governance and mandate comes from the government.

False. As of 2010, the "profits" marked for the treasury are being taken as IOUs from the fed. This is due to the central banks insolvency issues.