Do you view the Fed as more public than private or vice-versa?

[Anarchist420]

I like Bernie Sanders and all for his honesty as well as his anti-war and pro-civil liberties views, but I view the Fed more as a public institution. It was chartered by the state, serves the interest of the state and agents of the state, serves debtors more often than it serves creditors, and it has its board of governors appointed by agents of the state.

When the money supply contracts, its the market demanding that as a necessary correction because the central bank (which was chartered by the state) was inflating too much. The Fed is much more inflationary than it is deflationary, and it was designed that way as it was designed as a protection for counterfeiting. Any gold standard under a central bank is not a true gold standard because all of that gold would be centralized in a central bank and it would be constantly devalued because governments and bankers can't be trusted with money.

Do you agree that the Fed is much closer to greenbackism than it is to no monetary socialism?

I do, because a greenback system would also be controlled by special interests (those who lobbied congress the best would get the freshly printed money first), would be even more inflationary, and would not significantly reduce the business cycle because the market would still set prices unless the government price fixed. However, if the government printed money and price fixed (the latter of which it would have a tendency to do under a highly inflationary environment) then that would cause massive destruction in a heartbeat.

 

[soccerballtux]

I don't think the Fed is close to greenbackism, because all our Legal Tender in existence, with the exception of the $300m in Lawful Money created ~1970 with the abolition of the gold standard, is debt backed, meaning the interest on the money is never created until more debt is taken out.
Fed buys $1K Bond from Treasury, Treasury spends $1K Bond, government taxes to earn back the $1K Bond, but they owe the Fed $1K + Interest. That interest money has to come from a second Treasury bond, hence why if we tried to pay off all our debt, currency would cease to exist but there would still be outstanding debt needing payment. This is always why we need total debt to always be increasing.

 

[woolfe9999]

Please provide a quote from Sanders on this. It's the premise of your OP. I can't find a quote where he says "the Fed is only private" or words to that effect.

 

[Anarchist420]

Please provide a quote from Sanders on this. It's the premise of your OP. I can't find a quote where he says "the Fed is only private" or words to that effect.

Well, he has said it shouldn't exist because it's private, or something like that. I'll remove the word "only" from the thread title.

 

[Anarchist420]

I don't think the Fed is close to greenbackism, because all our Legal Tender in existence, with the exception of the $300m in Lawful Money created ~1970 with the abolition of the gold standard, is debt backed, meaning the interest on the money is never created until more debt is taken out.

That's true, other than you should be careful to note that Nixon ended a phony gold standard rather than a real one.

Still, the government has a lot of influence over the Fed and the Fed is inflationary like greenbackism, they just do it differently.

 

[sm625]

The Fed is public in the sense that you know what they are going to do: print money and give it to wall street. So you can easily get in on the scheme. Hence the public moniker. But only if you have money to risk on wall street! Otherwise, the Fed is quite private!

Technically it is a private central bank. It is accountable to no one. It could literally print 5 trillion dollars and use it to buy assets it knows are worth literally nothing. Examples of these types of debts are 2nd line HELOCS behind a forclused first mortgage, and student loans that were made to people who are now dead (or imprisoned for life). There are trillions of dollars on bank balance sheets that are pretty much worth nothing, and the Fed could buy it all. And they will once the debt can be purchased by insiders for a low enough price. And no one will be held to account no matter how many machinations of fraud are involved. No matter how blatant the fraud is, nothing is ever done. It just gets bigger and bigger until it swallows such a huge chunk of the economy that we self destruct.

 

[Lemon law]

Please provide a quote from Sanders on this. It's the premise of your OP. I can't find a quote where he says "the Fed is only private" or words to that effect.

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I have to partially agree with woolfe here, as my complaint in more in area of anarchist420 habit of asking endless over simplied questions.

IMHO, a more complex Bernie Sanders or anyone else can't be characterized by a single criteria question in the form of is the fed private or public? Such criteria may more motivate propagandists rather than serious intellectuals. As for me, and IMHO, I am getting a little tired of anarchist420 asking endless meaningless questions that can only have meaningless answers.

As I suggest we should ask serious questions like does your chewing gum lose its flavor if left on the bed post overnight?

 

[Nemesis 1]

Give it a rest . I think he is a younger man . Who ask hard questions . That have simple answers. Yes the Fed is 100% private . Rothschild being the majority owner hidden under a million documents. With the Obama bailout. We went to the Fed . The Fed went along with it . But What exactly did we the people give up for this life saving infusion of cash the vary nature of the event was even created by the Fed, There is No Gold in Knox Rothchild got what was left in 1970. Kill Rothschild and you cut the head of the beast off.

The OP is asking a question in tune with this one. Is Ron Paul for real and is the media covering it up. With all the proven election fraud(Private rule making body so no fraud). I like Ron Paul . BUT! If Ron really is as popular as all the paul rallies show. Ron Paul has No chance of being elected under our corrupt system. But If Paul is Really alot more popular than we precieve. Paul may be placed as president threw the power of we the people and well over 300,000,000 guns. Paul will not be president without blood flowing in the streets a fact. It dam-n well may come to that.

http://www.youtube.com/watch?v=bLCHWhmyn8w

http://www.youtube.com/watch?v=USGSOViaulc&feature=related

 

[DCal430]

The Fed is public in the sense that you know what they are going to do: print money and give it to wall street. So you can easily get in on the scheme. Hence the public moniker. But only if you have money to risk on wall street! Otherwise, the Fed is quite private!

Technically it is a private central bank. It is accountable to no one. It could literally print 5 trillion dollars and use it to buy assets it knows are worth literally nothing. Examples of these types of debts are 2nd line HELOCS behind a forclused first mortgage, and student loans that were made to people who are now dead (or imprisoned for life). There are trillions of dollars on bank balance sheets that are pretty much worth nothing, and the Fed could buy it all. And they will once the debt can be purchased by insiders for a low enough price. And no one will be held to account no matter how many machinations of fraud are involved. No matter how blatant the fraud is, nothing is ever done. It just gets bigger and bigger until it swallows such a huge chunk of the economy that we self destruct.

You are wrong, they heads of the Federal Reserve are appointed by the President and confirmed by the Senate. They may be impeached and removed for criminal activity. It is NOT a private central bank.