Republicans Have No Plan to Fix Inflation

[Tom Paine 1949]

Sorry, turd, but the Federal reserve is a tool the government uses to debase the currency. You would jave us believe we didn't have capitalism before 1914. Only ignorant morons believe that.

Your post is ironic because your complete economic ignorance. My answered to your braindead question is that the government shouldn't have a monetary policy. The government shouldn't be manufacturing money out of thin air.

When did Trump pressure the Fed to print more money?

Besides your insults, you have nothing.

Your ignorance of economic history is profound. Even under the so-called “Gold Standard” regular runs on private banks — which then issued their own banknotes (money) in the 19th century led to regular “panics” and bank & currency failures. Those panics along with increasing international trade (and the development of huge national markets and industrial corporations) REQUIRED a central bank to unify and stabilize currency transactions.

Inter-imperialist capitalist competition and the demands of the two World Wars, not to mention the collapse of the Gold Standard (initially during WWI in Europe), made Central Banks or hybrid private / government monetary authorities like the Fed absolutely necessary in every single advanced economy in the world.

This occurred over one hundred years ago. Starting over 240 years ago “United States Banks” were proposed and episodically introduced. During the Civil War fiat currencies already proved necessary. Perhaps you want to use Confederate currency or “Bitcoin” when you go to the supermarket, the gas station, or pay your taxes? How about sea shells?

You have no proposal for monetary policy, no suggestions for replacing or structurally modifying the Federal Reserve banking system or contemporary American capitalism. Not even any proposals to overhaul or reform our giant stock market casino, our corrupting campaign finance laws or taxation system. You are like the anarchists (or communists) who say that under modern capitalism “government is the problem” or “banksters are the root of evil” and want to do away with both — without any concern about what will replace our banking system, or our Constitutional Republic and evolved institutions and norms of representative democracy.

 

[miketx]

Besides your insults, you have nothing.

Your ignorance of economic history is profound. Even under the so-called “Gold Standard” regular runs on private banks — which then issued their own banknotes (money) in the 19th century led to regular “panics” and bank & currency failures. Those panics along with increasing international trade (and the development of huge national markets and industrial corporations) REQUIRED a central bank to unify and stabilize currency transactions.

Inter-imperialist capitalist competition and the demands of the two World Wars, not to mention the collapse of the Gold Standard (initially during WWI in Europe), made Central Banks or hybrid private / government monetary authorities like the Fed absolutely necessary in every single advanced economy in the world.

This occurred over one hundred years ago. Starting over 240 years ago “United States Banks” were proposed and episodically introduced. During the Civil War fiat currencies already proved necessary. Perhaps you want to use Confederate currency or “Bitcoin” when you go to the supermarket, the gas station, or pay your taxes? How about sea shells?

You have no proposal for monetary policy, no suggestions for replacing or structurally modifying the Federal Reserve banking system or contemporary American capitalism. Not even any proposals to overhaul or reform our giant stock market casino, our corrupting campaign finance laws or taxation system. You are like the anarchists (or communists) who say that under modern capitalism “government is the problem” or “banksters are the root of evil” and want to do away with both — without any concern about what will replace our banking system, or our Constitutional Republic and evolved institutions and norms of representative democracy.

Lol, typical turd babble never changing always the same. Trump has ruined you fools. Lol

 

[Flopper]

Biden and the Democrats have absolutely no plan to fix inflation or anything else. ....

Once a trend of inflation or deflation starts there is little any administration can do to stop it. This is why congress has given the Federal Reserve sweeping powers to curtail economic growth, or stimulate growth in a recession. Government spending can effect economic growth and thus inflation but economists can not agree on how big that effect actually is. Generally most economist go with the percent of federal spending as a percent of GDP which is 23.5% in 2022; that is 23.5% of current inflation is due go government spending. Thus the federal government spending contributes about 1.6% of the current 7.2% inflation.

 

[Tom Paine 1949]

Sorry, turd, but the Federal reserve is a tool the government uses to debase the currency … The government shouldn't be manufacturing money out of thin air…

When did Trump pressure the Fed to print more money?

The government doesn’t “manufacture money out of thin air.” In our system that is the job of banks and the Federal Reserve banking system, which is a hybrid private banking system of great private banks with a federal board of governors appointed or approved by Congress and the President from among major financiers (or economic experts).

MONEY CREATION is done NOT by government but by the Federal Reserve — or any bank — and occurs not by “printing currency” but by EXPANDING LOANS and CREDIT. The Treasury may actually print new money or destroy old cash — but this is insignificant and does not ordinarily expand the amount of money put into circulation. It does not compare to the trillions put out by the Fed via loosening monetary conditions, i.e. lowering interest rates or other QE measures.

To increase spending above the level of tax receipts the (federal) government must issue and sell treasury bonds or notes, and first of all they need Congressional spending authority. If this will raise overall federal indebtedness they may need Congressional approval for that as well. Ultimately an ability to sell bonds (borrow money) at reasonable rates from those already holding money is required, which is ordinarily much easier for a great economic power like the U.S. than for weaker ones. Of course in times of financial crisis the Fed has shown its willingness to buy and “monetize” these bonds with “created money” as I have explained before. This is just ABC basics bripat9643 seems to misunderstand. It is crucial to understand these factors if one wishes to reform and change the system, or reduce the incentive for government to spend beyond tax revenues.

bripat9643 ’s question “When did Trump pressure the Fed to print more money?” is thus very poorly worded, but to the extent it has meaning I already answered this question clearly in comment #793 above. The fact that Trump’s populist loose money “Zero Interest Rate Policy” pressure was rejected … shows the relative independence of Federal Reserve bankers in our hybrid system. Of course if President Trump had been re-elected, and controlled Congress, he probably would have removed Powell (whom he had appointed) and found somebody even more amenable to his populist monetary / credit expansionist ideas.

P.S.

I respond to bripat9643 — despite his infantile insults — just to educate others who may be following my words.

 

[Staidhup]

Tax cuts are out of the question, reduction in government spending remains the focus. As for monetary policy the Fed has been somewhat politicized over the past several decades due to government spending and Nixon removing the US from the Gold Standard. So much for Bretton Woods. Politicians have given merit to Modern Monetary Theory and belief that annual deficits are not a problem, provided people have faith in the issuing country’s ability to honor the debt and are willing to purchase. Inflation on the other hand can only be addressed by slowing down the economy which translates into stagflation, recession, or deflationary period driving down the components of finished goods which yields in a decrease of disposable income of those that actually work. The Fed plays an important role in regulating money supply and the money multiplier effect which demands they remain totally independent of political and media pressures. The question is are they willing to stay the course regardless of political pressures being exerted by the executive and legislative branches of government.
So what plan should any political party have in manipulating monetary policy? Government spending is the only tool politicians should have, which translates into the reduction in government spending. Raising taxes is just another quick way of pounding the mail in the coffin to slow down the growth in GDP.

 

[Flash]

These Libtards are a hoot and half.

They break the economy and then bitch that we haven't fixed it.

Ronald Reagan fixed Jimmy Carter's inflation and if we can get rid of the Democrat idiots in the Senate and White house we can fix what Potatohead broke.

 

[bripat9643]

The government doesn’t “manufacture money out of thin air.” In our system that is the job of banks and the Federal Reserve banking system, which is a hybrid private banking system of great private banks with a federal board of governors appointed or approved by Congress and the President from among major financiers (or economic experts).

MONEY CREATION is done NOT by government but by the Federal Reserve — or any bank — and occurs not by “printing currency” but by EXPANDING LOANS and CREDIT. The Treasury may actually print new money or destroy old cash — but this is insignificant and does not ordinarily expand the amount of money put into circulation. It does not compare to the trillions put out by the Fed via loosening monetary conditions, i.e. lowering interest rates or other QE measures.

The Federal Reserve is the government, numskull.

I don't have time to debunk the rest of your idiotic post.

 

[Dragonlady]

Lol, typical turd babble never changing always the same. Trump has ruined you fools. Lol

In other words, you didn't understand a single thing he wrote. Wouldn't it be better to say nothing and leave people wondering about your ignorance, rather than posting weak insults and confirming you have nothiing???

All of you clowns railing against the Fed raising interest rates had no problem with the artificially low rates that propped up the Stock Market for Donald Trump. Did you think there would never be an economic price to pay for Trump's tax cuts and economic collapse???

 

[struth]

In other words, you didn't understand a single thing he wrote. Wouldn't it be better to say nothing and leave people wondering about your ignorance, rather than posting weak insults and confirming you have nothiing???

All of you clowns railing against the Fed raising interest rates had no problem with the artificially low rates that propped up the Stock Market for Donald Trump.

the rates were artificially low, they were low, because trump didn’t have an inflation problem because he had sound policies that boost the economy, unlike xiden

 

[bripat9643]

In other words, you didn't understand a single thing he wrote. Wouldn't it be better to say nothing and leave people wondering about your ignorance, rather than posting weak insults and confirming you have nothiing???

All of you clowns railing against the Fed raising interest rates had no problem with the artificially low rates that propped up the Stock Market for Donald Trump. Did you think there would never be an economic price to pay for Trump's tax cuts and economic collapse???

Inflation was 1.5% when Trump was in office, so how were the rates "artificially low?"

 

[Nostra]

Biden claims inflation is zero, so why do we need a plan to fix inflation?

 

[Tom Paine 1949]

The Federal Reserve is the government, numskull.
I don't have time to debunk the rest of your idiotic post.

Yes, you are so busy that you only have time for moronic infantile insults!

The Federal Reserve is a complex hybrid central bank with considerable independence, as I have indicated. It was constructed that way in good part to insulate monetary policy from direct political control — to prevent lunatic populist politicians like Donald Trump from controlling big capitalist banks and the capitalist system itself.

 

[struth]

Yes, you are so busy that you only have time for moronic infantile insults!

The Federal Reserve is a complex hybrid central bank with considerable independence, as I have indicated. It was constructed that way in good part to insulate monetary policy from direct political control — to prevent lunatic populist politicians like your cult hero Donald Trump from easily controlling capitalist banks.

it’s complex but it’s govt.

 

[bripat9643]

Yes, you are so busy that you only have time for moronic infantile insults!

The Federal Reserve is a complex hybrid central bank with considerable independence, as I have indicated. It was constructed that way in good part to insulate monetary policy from direct political control — to prevent lunatic populist politicians like your cult hero Donald Trump from easily controlling capitalist banks.

The Federal Reserve is the government. Where's the "private" part? it was created so they could maintain the fiction that the government wasn't printing money, which it has no authority to do.

 

[Cellblock2429]

In other words, you didn't understand a single thing he wrote. Wouldn't it be better to say nothing and leave people wondering about your ignorance, rather than posting weak insults and confirming you have nothiing???

All of you clowns railing against the Fed raising interest rates had no problem with the artificially low rates that propped up the Stock Market for Donald Trump. Did you think there would never be an economic price to pay for Trump's tax cuts and economic collapse???

/-----/ You mean democRAT governor's economic collapse. Remember how you insufferable twats squealed like stuck pigs when Trump wanted to reopen the economy early? Of course, you do. You were the loudest pig squealing.

Trump challenged on his early bid to reopen economy

(SOUNDBITE) (English) U.S. PRESIDENT DONALD TRUMP, SAYING: "America will again and soon be open for business, very soon. A lot sooner than three or four months that somebody was suggesting. As U.S. President Donald Trump appears eager to lift restrictions that have forced the American economy...

news.yahoo.com

 

[Tom Paine 1949]

The “government” — actually Congress — absolutely has explicit and unique Constitutional authority to create (“coin”) and regulate the value of money, which it has for over 100 years instrumentalized through the Federal Reserve System via the Federal Reserve Act and amendments to it.

Private banks themselves can traditionally “create money” via extending credit and loans (fractional reserve banking), and the Fed has tools to regulate and hopefully / supposedly stabilize the system and make it serve “public interests.”

As for the Federal Reserve System’s hybrid public/private nature:

“The Federal Reserve Banks are not a part of the federal government, but they exist because of an act of Congress…. So is the Fed private or public?

“The answer is both. While its Board of Governors is an independent government agency [serving for staggered 14 year terms to insulate them from politics], the Federal Reserve Banks are set up like private corporations. Member banks hold stock in the Federal Reserve Banks and earn dividends. Holding this stock does not carry with it the control and financial interest given to holders of common stock in for-profit organizations. The stock may not be sold or pledged as collateral for loans. Member banks also elect six of the nine members of each Bank's board of directors.”

— Who Owns the Federal Reserve Banks?: In Plain English

Again, I write to explain the system to those truly interested, not to justify how it has been doing its job (imo it has been failing in many ways). I believe since 2008, the Fed has erred seriously in “conveniently” maintaining what was originally intended to be short duration low interest rate QE policies during a financial crisis.

 

[bripat9643]

The “government” — actually Congress — absolutely has explicit and unique Constitutional authority to create (“coin”) and regulate the value of money, which it has for over 100 years instrumentalized through the Federal Reserve System via the Federal Reserve Act and amendments to it.

Private banks themselves can traditionally “create money” via extending credit and loans (fractional reserve banking), and the Fed has tools to regulate and hopefully / supposedly stabilize the system and make it serve “public interests.”

The Supreme court ruled that "coin" does not mean paper money, dumbass.

As for the Federal Reserve System’s hybrid public/private nature:

“The Federal Reserve Banks are not a part of the federal government, but they exist because of an act of Congress…. So is the Fed private or public?

How is that possible? Congress created it. The president appoints the board of government, but it's not part of the government? Then who owns it, dumbass?

“The answer is both. While its Board of Governors is an independent government agency [serving for staggered 14 year terms to insulate them from politics], the Federal Reserve Banks are set up like private corporations.

What difference does it matter how they are setup? The bottom line is that the government has the last word. The government owns the Federal Reserve. Only a special kind of moron would swallow the lie that they are private ebanks.

Member banks hold stock in the Federal Reserve Banks and earn dividends. Holding this stock does not carry with it the control and financial interest given to holders of common stock in for-profit organizations. The stock may not be sold or pledged as collateral for loans. Member banks also elect six of the nine members of each Bank's board of directors.”

The so-called "member banks" are owned by the federal government. It's for profit? Who gets the profit, dumbass? "Stock" that can't be sold? What kind of private property is that?

— Who Owns the Federal Reserve Banks?: In Plain English

Again, I write to explain the system to those truly interested, not to justify how it has been doing its job (imo it has been failing in many ways). I believe since 2008, the Fed has erred seriously in “conveniently” maintaining what was originally intended to be short duration low interest rate QE policies during a financial crisis.

Why don't you just admit that you've been conned?

 

[Tom Paine 1949]

So now our “baby with his middle finger in the air” Britpat … wants to play at being some kind of “Gold Bug Constitutionalist”?

What a moron!

The Supreme Court rulings in the “Legal Tender Cases” of 1871 definitively resolved the issue of the right of Congress to issue paper money (even treasury notes not backed by gold) over 150 years ago!

I can’t waste any more time with this moron, who continues to insult me … and everybody’s intelligence.

Anyone interested in the “Legal Tender” rulings can go here:
Legal Tender Cases - Wikipedia

 

[Clipper]

Dragonlady

In other words, you didn't understand a single thing he wrote. Wouldn't it be better to say nothing and leave people wondering about your ignorance, rather than posting weak insults and confirming you have nothiing???

All of you clowns railing against the Fed raising interest rates had no problem with the artificially low rates that propped up the Stock Market for Donald Trump. Did you think there would never be an economic price to pay for Trump's tax cuts and economic collapse???

That would require them to admit that their orange god was flawed. Can't have that.

 

[AZrailwhale]

We read and hear all the disinformed talking crazy about Biden, but they have no plan to stop inflation. If they had one, they would have presented it to congress. Because if they had one and it worked, they would most certainly assure themselves the majority. Instead it's been about obstruction and the idiocy of Big Money Manchin and Corporate Slave Sinema.

I say they have no plan because spending by trump contributed to the inflation.

Facts First: While some economists say the stimulus packages passed in response to the Covid-19 pandemic are having an impact on inflation, it's misleading to suggest that's the only explanation for the recent rise in inflation. Blaming it exclusively on Democratic spending proposals misrepresents what's actually been passed, and ignores the trillions of dollars in spending passed last year supported by Republicans and signed by then-President Donald Trump which economists say have also contributed to inflation.

Last year, Congress passed two bills totaling around $3 trillion in Covid relief spending -- the $2 trillion Coronavirus Aid, Relief and Economic Security Act passed in March 2020, and the $900 billion pandemic relief bill passed in December 2020. Both were signed by Trump and supported by Republicans.

Fact-checking Republican attempts to blame inflation on Democrats

As the US economy gradually recovers from the coronavirus pandemic, prices are rising across the board with inflation exceeding the Federal Reserve's 2% target and reaching a 13-year high in June. Republicans have turned that jump in inflation into a political talking point, trying to place the...

www.cnn.com

And Rick Scotts tax increase for all is not the answer. So the Republican plan is to get the majority and start bogus investigations on Hunter Biden and attempt to impeach Biden, then Harris. If they appoint trump to speaker, understand that is the first move to the attempt to reinstall him as president. Sane Americans cannot continue falling for disinformation. Biden is not the reason that supply chains have been hampered, COVID is. And we were negatively affected by COVID due to the incompetence of a republican president. We cannot afford to have crazies running our government.

The only answer to inflation is to ride it out by raising interest rates and cutting governmental spending. Inflation is like a leak in a boat, the first thing you have to do is stop making it worse. Once you have the water leak stopped, you can bail it out.