Was the Fed created by democrats or Republicans?

[Foxfyre]

1913

LOL, yes 1913. My bad. Even though I once was a semi-professional proof reader, I've never been all that good at proofing my own stuff.

 

[Toddsterpatriot]

Heh heh. "Unfunded liability?" How cute...

I gave my kid an IOU for $30 billion.

Should my family declare bankruptcy?

 

[BackAgain]

An unfunded liability isn't a debt.

If the government owes a few hundred thousand or a few million retired government employees ongoing pensions, you bet your ass it’s a debt.

 

[BackAgain]

LOL, yes 1913. My bad. Even though I once was a semi-professional proof reader, I've never been all that good at proofing my own stuff.

You beat me. I usually catch my typos or other mistakes after I hit the “post reply” button.

 

[Foxfyre]

There was a bank run in 1907/08 that supposedly was the precipitating stressor on the Financial System that caused the Fascists to create the US Federal Reserve. We could never have had the FDR Great Depression without the Fed

Most historians would agree with that. The Fed was created to prevent recession but those running the fed were either ignorant in how the economy works or negligent in their duties and their actions and inactions were a driving force behind the Great Depression.

You would think a competent government would have withdrawn some or most of the fed's authority because of that, but no, it is still with us with almost unlimited power and little or no government oversight.

Whenever you take any critical component out of the hands of the people/elected representatives of the people, it almost never goes well.

 

[Toddsterpatriot]

There was a bank run in 1907/08 that supposedly was the precipitating stressor on the Financial System that caused the Fascists to create the US Federal Reserve. We could never have had the FDR Great Depression without the Fed

Yeah, the Fed really fucked that one up. Bigly.

 

[BackAgain]

I gave my kid an IOU for $30 billion.

Should my family declare bankruptcy?

Didn’t Orange County CA once declare bankruptcy largely because it couldn’t afford to pay its pensioners?

 

[Toddsterpatriot]

If the government owes a few hundred thousand or a few million retired government employees ongoing pensions, you bet your ass it’s a debt.

But it's not.
Not until they borrow the money to pay the inflated pensions.
Until then, it's just a promise.

 

[BackAgain]

But it's not.
Not until they borrow the money to pay the inflated pensions.
Until then, it's just a promise.

And a promise upon which people relied. And that’s the definition of “detrimental reliance” thereby making it a contract.

 

[Toddsterpatriot]

Most historians would agree with that. The Fed was created to prevent recession but those running the fed were either ignorant in how the economy works or negligent in their duties and their actions and inactions were a driving force behind the Great Depression.

You would think a competent government would have withdrawn some or most of the fed's authority because of that, but no, it is still with us with almost unlimited power and little or no government oversight.

Whenever you take any critical component out of the hands of the people/elected representatives of the people, it almost never goes well.

Most historians would agree with that. The Fed was created to prevent recession

Where did you get that idea? Before the Fed, there were booms and busts. And without
a source of liquidity, the busts were longer and deeper than they could have been.

No one ever said a central bank would prevent recessions.

 

[Toddsterpatriot]

Didn’t Orange County CA once declare bankruptcy largely because it couldn’t afford to pay its pensioners?

No. The county Treasurer bought some bad investments.

 

[Toddsterpatriot]

And a promise upon which people relied. And that’s the definition of “detrimental reliance” thereby making it a contract.

A promise is a promise.
A promise isn't a debt.

 

[GMCGeneral]

Wasn't it Nixon that took us off the Gold Standard? In any event, this further aggravated the financial mess that led us to where we are now.

 

[CrusaderFrank]

Most historians would agree with that. The Fed was created to prevent recession

Where did you get that idea? Before the Fed, there were booms and busts. And without
a source of liquidity, the busts were longer and deeper than they could have been.

No one ever said a central bank would prevent recessions.

The busts ended in 2 years or less, even in 1919/20, much better than where we are now

 

[BackAgain]

No. The county Treasurer bought some bad investments.

And? Because of that, the County couldn’t afford its debts including the payment of pensions to pensioners.

 

[BackAgain]

A promise is a promise.
A promise isn't a debt.

A contractual promise to pay is absolutely a debt.

 

[Foxfyre]

Most historians would agree with that. The Fed was created to prevent recession

Where did you get that idea? Before the Fed, there were booms and busts. And without
a source of liquidity, the busts were longer and deeper than they could have been.

No one ever said a central bank would prevent recessions.

The fed was created to prevent recessions - Bing

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Crises Before and After the Creation of the Fed - San Francisco Fed

The Federal Reserve was created 100 years ago in response to the harsh recession associated with the Panic of 1907. Comparing that recession with the Great Recession of 2007–09 suggests the Fed can mitigate downturns to some extent. A statistical analysis suggests that if a central bank had...

www.frbsf.org

 

[Foxfyre]

Wasn't it Nixon that took us off the Gold Standard? In any event, this further aggravated the financial mess that led us to where we are now.

Actually it was FDR who started the concept, LBJ exacerbated it, and Nixon put the final nail in the coffin. I think all were probably well intended but ill advised. Nixon especially promised it would stabilize the dollar, but the dollar is worth 17 cents now of what it would buy back then.

I am no Keynesian but Keynes was absolutely right when he wrote:
“There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”

That is why President Trump was so adamant that China be made accountable for its deliberate manipulation of U.S. currency, something even some economists don't understand. The current administration not only ignores that, but encourages it and I can't see that the Fed has ever addressed it.

 

[Toddsterpatriot]

The busts ended in 2 years or less, even in 1919/20, much better than where we are now

Look up Panic of '93.

Panics and Busts were much worse than what we go through now.

 

[Toddsterpatriot]

And? Because of that, the County couldn’t afford its debts including the payment of pensions to pensioners.

And he lost $1.7 billion. Nothing to do with pensions.