The Fed

[Dadoalex]

It's virtually the same thing as borrowing money. It's an IOU. Right now, China and Japan owns over $2 trillion of those IOU's.

"virtually" the same means not the same.
That's because it's not the same.
One is cash, the other is bonds.

Example: I hand you a $100 bond and tell you to spend it. You can't till you turn it to cash by selling it. But the person you sell it to isn't going to give you $100. He's going to give you whatever the NPV of $100 at maturity. Maybe as little as $30 depending on current rates and maturity. $32T in debt is not $32T in cash.
Example: I hand you $100 in cash and instruct you to buy a $100 bond with a 30 year maturity at 7.5%. Are you going to hand the seller $100? I hope not because the NPV is like $11.42. Again, $32 in debt is not $32T in cash.

 

[Lesh]

whats better is to let the economy run its natural course instead of trying to control it,,

as you said those little depressions didnt effect the everyday people at all and had little effect on the ones it did,,

That’s new. Depressions don’t effect every day people.

I guess my grand parents who lived through the last one were not “every day people”?

He was a maintenance man and she a school teacher

 

[progressive hunter]

That’s new. Depressions don’t effect every day people.

I guess my grand parents who lived through the last one were not “every day people”?

He was a maintenance man and she a school teacher

the other persons comment about that was based on depressions back before the fed,,

thats why we never hear about them because they only effect big money people and had little to no effect on the average person,,

 

[The Sage of Main Street]

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?

Big-Shoed Performers Under the Big Top

It's not the institution; it's the know-it-all morons who head it. We need a new ruling class that doesn't impose simple-minded solutions. Both Austerity Feds and Free-Money Feds are clowns.

 

[Lesh]

Ok, but explain why we need the fed to do that? Why can’t the government do the same thing as what the fed is doing ?

Moot point. They didn’t and apparently can’t . Go read a book if you’re that interested

 

[Lesh]

the other persons comment about that was based on depressions back before the fed,,

thats why we never hear about them because they only effect big money people and had little to no effect on the average person,,

Just stop talking. You’re making people dumber

 

[progressive hunter]

Just stop talking. You’re making people dumber

so what part of what I said scares you so much you want me silenced???

 

[g5000]

And you think after the Fed we didn’t?

sigh

List of recessions in the United States - Wikipedia

en.wikipedia.org

You can see in that link that recessions and depressions were far more frequent, and much deeper, before the Federal Reserve was created.

The longest depression, actually called The Long Depression, was from October 1873 to March 1879.

 

[g5000]

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)

The reason we have a Federal Reserve is due to the fact that there was no system in place during economic crashes to backstop the banks from collapsing en masse.

Before the Great Depression, the US averaged about 200 bank failures each year. And that was during good times.

Another reason is that if we allowed performative assholes in Congress to get their hands on the money-making machinery, we would have hyperinflation on a Zimbabwe level.

I hope this answers your question. If you need more American history, I'm always here for you.

 

[Lesh]

I do this for a living, you have three words that don't mean shit. It speaks for itself how worthless this post is.

What was I referring to that the Fed steals from taxpayers? You don't know, do you? Be honest.

One word, don't ....

LOL, stupid douche

Do what for a living? Spew stupid shit on the internet?

 

[g5000]

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

You know, I hear a lot of bitching about inflation lately.

But think about this: We are $32 trillion in debt. Imagine what the dollar would be worth if Congress had printed an extra $32 trillion instead.

 

[gipper]

sigh

List of recessions in the United States - Wikipedia

en.wikipedia.org

You can see in that link that recessions and depressions were far more frequent, and much deeper, before the Federal Reserve was created.

The longest depression, actually called The Long Depression, was from October 1873 to March 1879.

Lol. Do you not know how long the Great Depression lasted and how it negatively effected nearly every American?

 

[Lesh]

The reason we have a Federal Reserve is due to the fact that there was no system in place during economic crashes to backstop the banks from collapsing en masse.

Before the Great Depression, the US averaged about 200 bank failures each year. And that was during good times.

Another reason is that if we allowed performative assholes in Congress to get their hands on the money-making machinery, we would have hyperinflation on a Zimbabwe level.

I hope this answers your question. If you need more American history, I'm always here for you.

Have you read the stupid shit mon this thread?

My God

 

[g5000]

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

Yes it does.

Just ask Weimar Germany.

Or post-war Hungary.

Or Zimbabwe.

I have a trillion dollar bill from Zimbabwe. And a few 50 billion dollar bills.

 

[g5000]

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?

The $32 trillion of debt is on our politicians.

And you would have them print it instead!

 

[Lesh]

Lol. Do you not know how long the Great Depression lasted and how it negatively effected nearly every American?

I think he does . Most of your buddies do not.

One retard even called them normal and claimed they don’t hurt average people

 

[g5000]

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

Yet economic crashes were far more frequent and deeper and longer lasting.

Tying your economy to how much metal you dug out of the ground is idiotic.

 

[gipper]

The $32 trillion of debt is on our politicians.

And you would have them print it instead!

Lol. How did you conclude that from my post?

Do you know how long the Great Depression lasted?

 

[g5000]

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.

Nope.

We are the greatest debtor because we demand more and more from the federal government but don't want to pay for it.

 

[g5000]

Lol. How did you conclude that from my post?

Do you know how long the Great Depression lasted?

The Great Depression lasted 3 years and 7 months.