Originally posted by: LegendKiller
Originally posted by: PC Surgeon
Originally posted by: LegendKiller
Originally posted by: PC Surgeon
Originally posted by: LegendKiller
Originally posted by: PC Surgeon
Well you show your feeble mindedness by changing your stance on what I post. You aren't voting for me dipshit. :laugh:
No, I show that I choose not to vote in somebody that I think is supported by asshats. While I still haven't decided not to vote for him and I may still do so, it's getting pretty annoying to see how stupid you people are. The company one keeps is a good sign of the type of person they are, all I see around the internet, regarding Ron Paul, are idiots thinking they know about finance and economics. Challenge them and they fold like a cheap suit. It's annoying that you guys have the depth of Paris Hilton in these types of discussions. Next thing you know, if he becomes President, you people will try to influence his policies instead of moderating some.
Asshats? Stupid people? Idiots? Wow, how intelligent you are! :laugh:
Your insults (the normal for you) mean nothing. Maybe in grade school, but eventually you will realize we aren't 8yrs old anymore. Grow up child :laugh:
They mean about as much as your posts regarding finance. Nice try at minimizing me by claiming I am young. Where'd you pull that intarweb trick from? AOL?
No, the content of your posts showed me that.
🙂
Ohhh, good one. My content is so far ahead of yours it's ridiculous to even compare. Here I'll do you a favor. Respond to each point of this post and we'll see how far you get. Then, if you can counter every one, you're obviously my intellectual superior. Otherwise, admit that you can only win this argument by attacking me, not by attacking my posts.
1. The Fed is *not* a private company. It operates under Congressional mandate and is owned 100% by the member banks within the system. *Every* bank that is part of the Federal Reserve system, which is more or less every bank in the country, ownes shares in that system. This includes Bank of America, JPMorgan Chase, Bank of New York Mellon, Wachovia, Washinton Mutual, LeSalle, TFC, Wells Fargo, Bank Atlantic, Commerce Bank, 5/3rd, or any other bank you can think of. Since those banks are *PUBLIC* companies, the Fed is essentially owned by *EVERYBODY* in the country.
People think that the Fed should be abolished and that Congress should take over managing the currency. Sure. Perhaps 200 years ago when we didn't vote in dipshits. However, the short-term nature of Congressional "worries" (aka, getting re-elected) and the long-term concern of managing the economy, are not congruent. Thus, the two should absolutely be delinked.
The Fed is also very secret because, if it weren't, then the markets would be extremely volatile. Looking into the Fed on a minute basis would be akin to allowing people direct access to *every* board of directors of *every* company for *every* meeting. That would introduce tremendous problems, as people tossing around ideas, problems, solutions, and long-term projections would then be prone to conjecture in the market. The financial markets would be so stutter-stopped and jagged by the news that risk would skyrocket. Asking for a lot more transparency would stifle the Fed's ability to manage thigns on a long-term basis.
The Fed pays the government more than 80bn in revenue per year. *ALL* profits go to the government. Profits are from revenues on lending money to all banks, that money is from member banks and the government. The interest charged by the Fed, from banks, is then dividended out to the member banks (they deserve return for their lending), the remainder goes to the government.
2. Get a clue about the "government". WE spend the money the way WE want it. People try to pretend that the government is not representative of us, yet we vote them in. The Fed acts in accordance with the needs of the government, which passes laws to spend. WE vote in those who pass the laws. As soon as WE learn that WE need to either cut spending or raise taxes, then WE will not have to borrow.
3. Inflation doesn't occur just because currency circulation increases. If that were the case then we'd be facing drastically increasing inflation. Money can and should grow with the economic growth of the country. The more goods, services, and wealth in the country, the more currency should be circulated. Otherwise you are in a deflationary system.
Inflation occurs for several reasons. That includes growth resulting in wage increases which then floats into the system. It's also caused by the input of foreign goods into the system, which may be increasing in price (importing inflation). There are dozens of other reasons.
4. The problem with the Fed is that it has the problem of trying to balance short-term movements with long-term projections using historical events. Anybody who is a quantitative person involved in statistics knows that history is a very imperfect predictor of the future. You are always behind the curve. When inflation finally rears it's ugly head, it's too late and you are trying to play catch-up. AFAIK the only time the Fed was able to head off inflation was the mid 90's when they did pre-emptive rate increases, which turned out to be very accurate. However, those were gut feelings, not exact data driven events.
Furthermore, economics, at it's heart, is still an art, not a science. It is impossible to gauge human psychology when it comes down to these events. Thus, managing the growth of an economy that is unpredictable and un projectionable is more or less an impossible task.
Thus, the movements of the Fed are imperfect. Additionally, they will never be popular because everybody wants growth to be predictable. However, irrational exuberance, irrational pessimism, and the bubble mindset make it impossible to predict exactly how to stimulate or reign in the economy.
Additionally, the very nature of the Fed is to try to be as hands-off as possible without letting the economy run rampant. However, the ability of the economy to go through boom and busts have led to some of the greatest inventions and times of innovation and genius this country has ever seen. This destructive creativism is essential to continuing a modern country.
Blame the Fed all you want for the problems. However, until you come up with a viable and implementable solution, then shut the fuck up. I am sure some dipshit will go on and on about gold. But guess what? Gold is a commodity that is prone to speculation worse than a currency. It's deflationary in nature. It's inflexible, as the 1930's proved since *ALL* countries still o nthe gold standard took, on average, about 5 more years to even begin to recover.
Our currency is backed by something a lot less problematic, the US economy, the US military, and US innovation. It may not be fungible like gold, but is sure as hell gives you a vested interest.
In conclusion, let me ask people this. If the Fed, with a Fiat currency, were so evil and the root of all inflation, then how was inflation caused in the 1960s and 1970s when the Fed had far less control over rates. It had far less power to put bills into the market. The government had essentially no debt and the amount of currency into circulation. How then, was the Fed able to raise rates and get inflation under control so quickly? I thought the Fed was evil and wanted inflation?
What then, about years prior to that? When inflation was unpredictable, wild, high, low, inflationary, deflationary, and the economy was much more difficult to manage? Was that such a great time then? Additionally, you are talking about 100 years ago when managing an economy 1/200th the size was relatively easy. Now, using the same system, woudl be impossible and would lead to our collapse.
You people are so f'ing ignorant of the facts of the Fed, it's purpose, economcis, and above all, HISTORY and HUMAN PSYCHOLOGY, that you are nothing more than blind fools running around the internet trying to act knowledgable as you link to ridiculous websites that have just as little knowledge as you do. It's worse than the blind leading the blind.
It's the blind, dumb, deaf, stupid, crippled, armless, legless, slugs trying to lead other slugs over a cliff.
