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The Socialized American Monetary System (pg. 2)
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| Comrade Stalin |
| quote: | Originally posted by zDmn
you dont have a response trust me. |
Fine by me...
| quote: | | The more money is seen as printable paper, the less buying power(value) it has. The Federal Reserve was brought into power by propagating the need to combat inflation. Now the dollar is worth less than 4 pennies of its original value. That is FACT not conspiracy. |
Real wages have also risen with inflation. Nobody is getting paid $0.10/hr anymore...:rolleyes:
| quote: | | Is this a joke? Yeah we owe taxes. What happens when thats not enough for people like Bush or Obama? According to Obama himself, the Treasury is empty. You're going to tell me that there is no such thing as inflation when trillions are printed and backed by nothing? You dont think that inflation devalues the the money in your pocket or the money in your bank account? |
The government borrows just like any other entity around the world does. Nobody is denying that too much debt is a bad thing. But you take a ridiculous conspiratorial view of it which completely changes the debate from that which could actually be productive.
| quote: | | You're right!! We all need more money for the things we want. Now that money literally grows on trees, nobody even has to work anymore.... |
Should I even bother talking monetary policy to someone who willfully doesn't understand it?
| quote: | | Ok Mr.Economist, explain what happens if Freddie Mac and Goldman Sachs or AIG do fail. Tell me why Lehman Brothers despite being the largest investment firm in the USA WAS allowed to fail. In a free market system, corporations who up or take too much risk FAIL. Or they go bankrupt because nobody wants to buy their stuff. Its that simple. In a socialist system, a bank who hands out mortgage loans to people who could not possibly afford them, gets propped up by bailouts that are paid for by people who are honest with their money like you and me. The entire term "Too Big to Fail" is pure fear mongering. |
Lehman Brothers was allowed to fail because the Federal Reserve lacked the power to do anything. Afterwards, they were given special emergency powers by the Treasury Department to prevent a complete systemic collapse of the financial system. Apparently, you fail to grasp this. It's easy to believe as you do when you've never appreciated the possibility of losing your entire life savings because your bank was insolvent.
| quote: | | Thats just one of the reasons. And it doesnt seem like you have much of an arguement for it either. The USA has been in a constant state of warfare and weaponization dating back to the very point that the Federal Reserve was brought into existence. A government that relied on savings would have been completely exhausted of the financial means to fight and build weapons by this point. I cant believe you dont realize that fiat currency provides the government with the means to fight endless wars instead of seeking diplomacy and peace. |
Governments have been fighting wars far longer than fiat currency has even existed.
| quote: | | You have to get it into your head that the Federal Reserve is a series of private banks. The Fed is not a branch of government. When they loan money to the government's treasury they charge interest. |
The Federal Reserve is basically a credit union to private banks. In a credit union, all depositors are 'members' of the credit union. Therefore, all banks who use the Fed's financial services, must therefore be members. That doesn't mean the private banks control monetary policy. Additionally (let me put this in CAPS), ALL PROFITS OF THE FEDERAL RESERVE ARE RETURNED TO THE TREASURY DEPARTMENT. Yes, that includes interest paid.
| quote: | | I dont need to say inflation. You answered this question for me. I think I've explained this well enough already. You think I'm a conspiracy theorist. If I was a theorist I would be saying things like "This economic crisis was engineered!" All I'm saying is that GREED has brought us to this point. Is that so disagreeable? |
Inflation is a fact of economic life. You can't escape it. You can manage its effects on your portfolio. But you go far and beyond simply stating that excessive inflation is a bad thing. When you state that we instituted a fiat currency for secret diabolically evil reasons, you can't deny being a conspiracy theorist.
| quote: | | For the record, Obama already admitted to hand picking Marxist professors throughout college. He also advocated social justice when he put Sonya Soto-Mayor in the supreme court. |
Who cares? |
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| pkcRAISTLIN |
| quote: | Originally posted by Max Thomson
^ don't you ever get tired of being so ing omniscient and right about everything all the time? |
no, but i do get tired of putting up with the same fallacious claims every few months/years by armchair economists who don't have a clue how the federal reserve works or what it does.
| quote: | Originally posted by zDmn
None of what I said was theory you fool. Why dont you bring some substance to the debate here instead of pretending like you actually know something about anything? Please educate me on what part of my statement has anything to do with theory. |
sorry, i try not to waste my time on conspiracy theorists anymore. you've already made it abundantly clear that you are immune to facts and logic. nothing you said in the OP is correct, and your argument that we should all return to the gold standard is naive and ignorant.
feel free to dig up one of the other hundred threads we've already had on the federal reserve, noob. |
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| zDmn |
| quote: | Originally posted by Comrade Stalin
Fine by me...
Real wages have also risen with inflation. Nobody is getting paid $0.10/hr anymore...:rolleyes: |
Thats simply not true. Anyone who pays any attention knows our GDP has been growing much slower than our current rate of inflation for 10 years. There is more proof in the fact that people dont save much money anymore. The average guy no longer buys things with cash. He buys with debt. There is always a fake sense of prosperity when the Fed artificially lowers rates and makes credit easy. Governments, businesses, and even people find it ok to live just a little beyond their means. This practice is unsustainable. Its been proven time and time again that counterfeit money ends up being nothing more than paper because of inflation. Counterfeit money is not sound money.
| quote: | | The government borrows just like any other entity around the world does. Nobody is denying that too much debt is a bad thing. But you take a ridiculous conspiratorial view of it which completely changes the debate from that which could actually be productive. |
Its really convenient to call me conspiratorial while you try to claim the intellectual high ground without ever even making a good point. Have you ever read "The Communist Manifesto"? Karl Marx claims that in order to transfer a society from capitalism, to socialism, and then to communism, you need a central bank with an "exclusive monopoly". Since you advocate that practice that pretty much makes you a Marxist, and it further proves my point. The Federal Reserve is a socialist monetary system.
| quote: | | Should I even bother talking monetary policy to someone who willfully doesn't understand it? |
By now its pretty clear you dont know what you are talking about.
| quote: | | Lehman Brothers was allowed to fail because the Federal Reserve lacked the power to do anything. Afterwards, they were given special emergency powers by the Treasury Department to prevent a complete systemic collapse of the financial system. Apparently, you fail to grasp this. It's easy to believe as you do when you've never appreciated the possibility of losing your entire life savings because your bank was insolvent. |
I know someone in here already called me a fear monger for saying something about market collapse. "Special Emergency Powers"......thats a real "fear mongering" way to say loan. You're being played for a fool if you believe that. This kind of propaganda transfers money out of your pockets into the accounts of the people who screwed it all up in the first place. Goldman Sachs made $13B by taking advantage of the situation. We should all just trade in our rights for a little security huh? As it ends up, we get neither. You have to understand that the economy is going to go through tough times either way. If we do it the honest way by saving money and stopping inflation, at least we will come out with our rights intact.
| quote: | | Governments have been fighting wars far longer than fiat currency has even existed. |
No ? it then right? Lets keep dumping fuel on the fire till there are enough weapons to wipe out all life on this planet.......or wait, we already have that capability. The world is just a tad more stable when governments use diplomacy. But diplomacy takes a back seat when governments, who are fascist by nature, counterfeit money instead of living within its means.
| quote: | | The Federal Reserve is basically a credit union to private banks. In a credit union, all depositors are 'members' of the credit union. Therefore, all banks who use the Fed's financial services, must therefore be members. That doesn't mean the private banks control monetary policy. Additionally (let me put this in CAPS), ALL PROFITS OF THE FEDERAL RESERVE ARE RETURNED TO THE TREASURY DEPARTMENT. Yes, that includes interest paid. |
Seems like you're just pulling this out of your ass at this point. Did you just say that the Federal Reserve doesnt control monetary policy? We know that the Fed is made up of private banks. So by that fact, private banks DO control monetary policy. There was a Senator who asked Ben Bernanke, "...what would happen if congress passed HR1207, the bill to audit the fed?" Bernanke said "we would effectively see that as a take over of monitary policy by congress". Former Fed chairman Alan Greenspan said that "Nobody regulates the Fed. The relations between the Fed and the different branches of government dont frankly matter". The Fed has the power to expand and contract credit by tweaking reserve ratios and by adjusting interest rates without oversight. Thats what I call "anything goes economics".
Concerning the comment you displayed in caps, that is true but not relevant. The Fed prints money and sends it wherever it wants in pure secrecy. The federal reserve is nothing but a bunch of private bankers dressed up like civies and no matter what goes back to the treasury, you know these bankers are making a killing off the system.
Article 1, section 8 of the Constitution authorizes the coining of money and the control of credit to congress which is theoretically controlled by the people. Thomas Jefferson once said, "If central banks are institutionalized in America, the people will be deprived of their liberty, first by inflation, the by deflation, until the people wake up homeless on the land their fathers conquered". Think whatever you want about Jefferson, but truer words have never been spoken.
| quote: | | Inflation is a fact of economic life. You can't escape it. You can manage its effects on your portfolio. But you go far and beyond simply stating that excessive inflation is a bad thing. When you state that we instituted a fiat currency for secret diabolically evil reasons, you can't deny being a conspiracy theorist. |
I agree inflation is a natural symptom of currency. I disagree with you because you think that debt and counterfeiting are sustainable. Eventually the elastic is going to snap if man and not nature control the physics of monetary policy. If the dollar hyperinflates, it will be worthless and America will be the next Zimbabwe. If that happens its going to get really ugly for the whole world. Economies will collapse, governments will be overthrown, famine will be widespread,etc. It sucks that it has to be that way. All I'm saying is that we can avoid this by practicing honest money.
If ignorance is bliss, then why isnt everyone happy? |
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| pkcRAISTLIN |
god, will the ignorance never end? how do you guys make all this up when the actual facts are so easy to come by?
| quote: |
By: Edward Flaherty, Ph.D. Department of Economics College of Charleston, S.C.
Facts: Yes, the Federal Reserve banks are privately owned, but they are controlled by the publically-appointed Board of Governors. The Federal Reserve banks merely execute the monetary policy choices made by the Board. In addition, nearly all the interest the Federal Reserve collects on government bonds is rebated to the Treasury each year, so the government does not pay any net interest to the Fed.
Facts: No foreigners own any part of the Fed. Each Federal Reserve bank is owned exclusively by the participating commercial banks and S&Ls operating within the Federal Reserve bank's district. Individuals and non-bank firms, be they foreign or domestic, are not permitted by law to own any shares of a Federal Reserve bank. Moreover, monetary policy is controlled by the publically-appointed Board of Governors, not by the Federal Reserve banks.
Fact: Independent accounting firms conduct full financial audits of the Federal Reserve banks and the Board of Governors every year. The Fed is also subject to certain types of audits from the Government Accounting Office.
Facts: The Federal Reserve rebates its net earnings to the Treasury every year. Consequently, the interest the Treasury pays to the Fed is returned, so the money borrowed from the Fed has no net interest obligation for the Treasury. The government could print its own currency independent of the Fed, but there would be no effective safeguards against abuse of this power for political gain.
Facts: The Federal Reserve banks have only a small share of the total national debt (about 7%). Therefore, only a small share of the interest on the debt goes to the Fed. Regardless, the Fed rebates that interest to the Treasury every year, so the debt held by the Fed carries no net interest obligation for the government. In addition, it is Congress, not the Federal Reserve, who is responsible for the federal budget and the national debt.
Facts: Kennedy wrote E.O. 11,110 to phase out silver certificate currency, not to issue more of it. Records show Kennedy and the Federal Reserve were almost always in agreement on policy matters. He even signed legislation to give the Fed more authority to issue currency.
Facts: McFadden was incorrect regarding the Fed costing the government money. However, later economic analysis agrees with him that Federal Reserve policy blunders had a substantial role in causing the Depression. However, his implication that this was done deliberately has no basis in fact. Moreover, for a dozen years prior to his rant, McFadden had been the chairman of the House subcommittee that oversaw the Federal Reserve. Why didn't he do anything to reform or abolish the Fed while he had the chance?
Facts: The banking system is indeed able to create money with a mere computer keystroke. However, a bank's ability to create money is tied directly to the amount of reserves customers have deposited there. A bank must pay a competitive interest rate on those deposits to keep them from leaving to other banks. This interest expense alone is a substantial portion of a bank's operating costs and is de facto proof a bank cannot costlessly create money.
Fact: The term 'lawful money' does not refer to gold or silver coin, but to types of money which the government would permit banks to use when tabulating their reserves. These types of money included, but were not limited to, gold and silver coin. |
there. i think that covers most of the things you don't understand. please let let fly with further ignorance and we will endeavour to help you overcome it. |
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| zDmn |
| You know, for every link you post, there is another link that lays out the exact opposite. I guarantee you didnt even read them. Ive been challenging you for input and all you've been able to do is attack my character. And suddenly youre such a knowledgeable guy because you googled up 20 articles. Thats not how it works, noob. I've read convincing articles that describe all kinds of different opinions. I dont go along with the conspiratorial aspect of the Fed because there is a lot of phony information coming from all kinds of different opinions. All I have to do is look back at history and see how obvious it is that the Fed has too much power. |
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| pkcRAISTLIN |
| quote: | Originally posted by zDmn
You know, for every link you post, there is another link that lays out the exact opposite. I guarantee you didnt even read them. Ive been challenging you for input and all you've been able to do is attack my character. And suddenly youre such a knowledgeable guy because you googled up 20 articles. Thats not how it works, noob. I've read convincing articles that describe all kinds of different opinions. I dont go along with the conspiratorial aspect of the Fed because there is a lot of phony information coming from all kinds of different opinions. All I have to do is look back at history and see how obvious it is that the Fed has too much power. |
10 characteristics of conspiracy theorists
A useful guide by Donna Ferentes
6. Inability to tell good evidence from bad.
Conspiracy theorists have no place for peer-review, for scientific knowledge, for the respectability of sources. The fact that a claim has been made by anybody, anywhere, is enough for them to reproduce it and demand that the questions it raises be answered, as if intellectual enquiry were a matter of responding to every rumour. While they do this, of course, they will claim to have "open minds" and abuse the sceptics for apparently lacking same.
you dont know how the fed works or what it does. yes, i HAVE read numerous pieces of garbage that you're alluding to here. many of us in the PDD have been unfortunate to be presented with these arguments repeatedly over the last few years. every so often another idiot conspiracy theorist like yourself comes along to "open our eyes". ultimately all they do is illustrate their sincere lack of knowledge and understanding of a fairly straightforward and transparent institution. i pity you. |
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| Comrade Stalin |
| quote: | Originally posted by zDmn
Thats simply not true. Anyone who pays any attention knows our GDP has been growing much slower than our current rate of inflation for 10 years. There is more proof in the fact that people dont save much money anymore. The average guy no longer buys things with cash. He buys with debt. There is always a fake sense of prosperity when the Fed artificially lowers rates and makes credit easy. Governments, businesses, and even people find it ok to live just a little beyond their means. This practice is unsustainable. Its been proven time and time again that counterfeit money ends up being nothing more than paper because of inflation. Counterfeit money is not sound money. |
So what if inflation is higher than GDP? At the current levels, that says almost nothing. The bigger you are the more blood you have in your body. Well, the bigger our economy is, the more money is needs to function. This is economics 101. Nobody is denying too much debt is a bad thing, but you are turning it into some diabolical scheme by the central bank to enrich some secret group of private bankers, whom if I asked you to identity, you probably couldn't.
| quote: | | Its really convenient to call me conspiratorial while you try to claim the intellectual high ground without ever even making a good point. |
Tell me how your aren't conspiratorial. You've managed to turn real economic issues into ridiculous half truths and unsupported ideological assumptions.
| quote: | | Have you ever read "The Communist Manifesto"? Karl Marx claims that in order to transfer a society from capitalism, to socialism, and then to communism, you need a central bank with an "exclusive monopoly". Since you advocate that practice that pretty much makes you a Marxist, and it further proves my point. The Federal Reserve is a socialist monetary system. |
Have you read it? Or are you just regurgitating what you read off some fundie libertarian website? You don't even understand the context in which Karl Marx wrote his statement. He believed centralization of credit would deprive financiers of their capital and power, and thus make the state able to take full control of the means of production, and allocate resources exclusively to chosen sectors. In the United States, the government controls little in the way of 'means of production', and we have one the largest financial sectors in the world. The Federal Reserve does centralize monetary policy. So what? You still have the total freedom to start your business, obtain financial capital, and control production however you want.
| quote: | | By now its pretty clear you dont know what you are talking about. |
LOL, coming from you, that means nothing.
| quote: | | I know someone in here already called me a fear monger for saying something about market collapse. "Special Emergency Powers"......thats a real "fear mongering" way to say loan. You're being played for a fool if you believe that. This kind of propaganda transfers money out of your pockets into the accounts of the people who screwed it all up in the first place. Goldman Sachs made $13B by taking advantage of the situation. We should all just trade in our rights for a little security huh? As it ends up, we get neither. You have to understand that the economy is going to go through tough times either way. If we do it the honest way by saving money and stopping inflation, at least we will come out with our rights intact. |
Once again, you've completely failed to understand the concept of "too big to fail". The collapse of Lehman Brothers completely froze credit markets. COMPLETELY. A retard would be able to tell you what would happen if Bank of America, Washington Mutual, Wells Fargo, and the whose who of banking, were all allowed to just collapse. Do you have a bank account dude? Seriously...It's not going to be pretty. Even the Fed chairman said to the effect, "There's nothing in me that wanted to bail out these institutions, but the reality was, they had the rest of us by the neck. They go down, we all go down with them."
| quote: | | No ? it then right? Lets keep dumping fuel on the fire till there are enough weapons to wipe out all life on this planet.......or wait, we already have that capability. The world is just a tad more stable when governments use diplomacy. But diplomacy takes a back seat when governments, who are fascist by nature, counterfeit money instead of living within its means. |
No ? LOL. You're the one who thinks peace on earth will come with the gold standard. Get real.
| quote: | | Seems like you're just pulling this out of your ass at this point. Did you just say that the Federal Reserve doesnt control monetary policy? |
Do you know how to read? I said, "the private banks (who are members of the Federal Reserve) do not control monetary policy."
| quote: | | We know that the Fed is made up of private banks. So by that fact, private banks DO control monetary policy. |
Members of a credit union don't RUN the credit union. Member banks of the Federal Reserve don't RUN the Federal Reserve.
| quote: | | There was a Senator who asked Ben Bernanke, "...what would happen if congress passed HR1207, the bill to audit the fed?" Bernanke said "we would effectively see that as a take over of monitary policy by congress". Former Fed chairman Alan Greenspan said that "Nobody regulates the Fed. The relations between the Fed and the different branches of government dont frankly matter". The Fed has the power to expand and contract credit by tweaking reserve ratios and by adjusting interest rates without oversight. Thats what I call "anything goes economics". |
Good for Bernanke. Glad he said it. I sure don't want idiot politicians governing what the Federal Reserve does. The Federal Reserve DOES have oversight. Apparently, you've never seen the numerous times the Federal Reserve chairmen is before Congressional oversight committees being grilled by Congress.
| quote: | Concerning the comment you displayed in caps, that is true but not relevant. The Fed prints money and sends it wherever it wants in pure secrecy. The federal reserve is nothing but a bunch of private bankers dressed up like civies and no matter what goes back to the treasury, you know these bankers are making a killing off the system.
Article 1, section 8 of the Constitution authorizes the coining of money and the control of credit to congress which is theoretically controlled by the people. Thomas Jefferson once said, "If central banks are institutionalized in America, the people will be deprived of their liberty, first by inflation, the by deflation, until the people wake up homeless on the land their fathers conquered". Think whatever you want about Jefferson, but truer words have never been spoken. |
It is relevant in regards to your "Federal Reserve cartel prints money for profit" thesis. Obviously, it's blatantly false. When the Federal Reserve increases credit supply, member banks do benefit by being able to obtain credit cheaper. They don't do it just for s n giggles. They make LOANS. Loans for businesses to grow, etc. Apparently, you're completely against this. And if this was just to simply benefit the diabolically evil bankers, why would they increase interest rates? Huh? Why would they do that to themselves? Why did the Fed set interest rates to 20% in 1980? I guess the evil bankers just wanted to shoot themselves in the foot huh?
The Constitution does give authority for Congress to regulate money and credit. But guess what? Congress delegated this authority to an institution which can do it FAR better than they. Congress also delegates their authority to many other entities. This should be common knowledge but I guess it isn't.
| quote: | | I agree inflation is a natural symptom of currency. I disagree with you because you think that debt and counterfeiting are sustainable. Eventually the elastic is going to snap if man and not nature control the physics of monetary policy. If the dollar hyperinflates, it will be worthless and America will be the next Zimbabwe. If that happens its going to get really ugly for the whole world. Economies will collapse, governments will be overthrown, famine will be widespread,etc. It sucks that it has to be that way. All I'm saying is that we can avoid this by practicing honest money. |
Guess what? The ENTIRE WORLD is on fiat currencies controlled by central banks. The Bank of England, the European Central Bank, the People's Bank of China, must I go on?
http://en.wikipedia.org/wiki/List_of_central_banks
Apparently, the entire world is destined to become Zimbabwe! Give me a break...:rolleyes: America isn't turning into Zimbabwe. Comparing America to Zimbabwe just screams of lolz. Zimbabwe is a corrupt dictatorship. Quite possibly the worst premise you can make. In fact, if you looked at the recently released CPI data, if you discount volatile commodities like food and gas, the CPI actually fell! So we are hardly out of our deflationary state of affairs. Get off this sensationalist completely useless rhetoric unsupported by the facts. Our average inflation rate for this decade is about 3%. Clearly, your fears are way overblown.
| quote: | | If ignorance is bliss, then why isnt everyone happy? |
Because it means absolutely jack . Oh no, Obama has Marxist professors!!!@121 Run for the hills! He certainly isn't governing by Marxism. Rhetoric at its worst mate...:whip: |
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| NoError |
| When is the PDD going to get a left-wing CTer? These guys are getting a bit samey. |
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| zDmn |
I made the mistake of trying to reason with fools. The laws of nature, common sense, and the physics of money are totally irrelevant to a Marxist. They artificially change the rules and proclaim themselves intellectuals and its lead to the same end time and time again - a system of counterfeit money that cannot be sustained. The average man's 401K is drowning in debt while investment banks and government continue to grow despite the fact that they are the ones who overreached and caused this mess in the first place. Before Bretton Woods, the USA (despite the FED) was the worlds largest lender. Now we are the worlds largest debtor. Yet these Marxists still refuse to acknowledge the fact that wealth has been redistributed. Your solutions to the economic downturn are simply more of the same - counterfeit, confiscate, and redistribute. I shouldnt expect anything more from a guy named "Comrade Stalin" though.
My solutions?
- Return monetary powers to the Congress per the Constitution. Democracy is key when dealing with honest money.
- The currency must be backed by a commodity. A common man should be able to exchange his paper money for its worth in gold/silver/etc. at any bank of his choosing. This type of system would make the effects of counterfeiting much more apparent to the common man, in turn, encouraging government saving rather than debt. Interest rates will be influenced by commodity reserves and free markets instead of artificial means, and thus be more stable over a longer period of time.
- End "fractional reserve lending". When the average bank isnt able to loan money that doesnt exist, people are far more likely to buy with savings than debt. Prices of houses, cars, college, etc. will accommodate.
These key solutions, among others, would end an era of constant boom and bust cycles and massive market fluctuations, and replace it with a market that is not only more predictable and sustainable, but even more prosperous in the long run. |
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| pkcRAISTLIN |
And the ignorance keeps on coming…
| quote: | Originally posted by zDmn
My solutions?
- Return monetary powers to the Congress per the Constitution. Democracy is key when dealing with honest money. |
Lol. yeah! Given that the massive US debt is the fault of congress, you want to give them even more influence? Hahahahaha. the whole point of monetary policy laying with the fed is to keep monetary policy free of political influence. Which is why ALL central banks are set up in a similar fashion.
| quote: | Originally posted by zDmn
- The currency must be backed by a commodity. A common man should be able to exchange his paper money for its worth in gold/silver/etc. at any bank of his choosing. This type of system would make the effects of counterfeiting much more apparent to the common man, in turn, encouraging government saving rather than debt. Interest rates will be influenced by commodity reserves and free markets instead of artificial means, and thus be more stable over a longer period of time. |
Horrible idea, abandoned by the world. The only thing that a commodity-backed currency does is stifle growth (contractionary bias) and it does little to stop inflation (there’s nothing to stop a government devaluing a currency backed by commodity).
| quote: | Originally posted by zDmn
- End "fractional reserve lending". When the average bank isnt able to loan money that doesnt exist, people are far more likely to buy with savings than debt. Prices of houses, cars, college, etc. will accommodate. |
Another horrible idea from someone who doesn’t understand economics. Forcing banks to hold 100% of loans would ensure only the rich got loans, and interest rates would skyrocket, having a detrimental affect on growth and average people being able to afford basic things like cars or houses, not to mention small businesses wouldn’t be able to get any credit to operate.
^^ this is what happens when people who don’t understand economics try their hand at it (ala ron paul). Grow up, get an education and stop wasting your time with conspiracies. |
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| zDmn |
| quote: | Originally posted by pkcRAISTLIN
And the ignorance keeps on coming…
[QUOTE]Lol. yeah! Given that the massive US debt is the fault of congress, you want to give them even more influence? Hahahahaha. the whole point of monetary policy laying with the fed is to keep monetary policy free of political influence. Which is why ALL central banks are set up in a similar fashion. |
If Congress controlled monetary policy then monetary decisions wouldnt be made in complete secrecy without the discretion of the people. You obviously have a problem with democracy.
| quote: | | Horrible idea, abandoned by the world. The only thing that a commodity-backed currency does is stifle growth (contractionary bias) and it does little to stop inflation (there’s nothing to stop a government devaluing a currency backed by commodity). |
This idea was abandoned by the world when one nation after the other started counterfeiting money with aspirations of power. Im not arguing the fact that central banks and and fiat currency provide the illusion of prosperity in the short term. But that system, like a blue giant, expands at such a rapid rate burning through all of its available resources in short order. It always ends with a huge bang and governments are overthrown, rights are confiscated, and people are killed.
| quote: | | Another horrible idea from someone who doesn’t understand economics. Forcing banks to hold 100% of loans would ensure only the rich got loans, and interest rates would skyrocket, having a detrimental affect on growth and average people being able to afford basic things like cars or houses, not to mention small businesses wouldn’t be able to get any credit to operate. |
The prices of homes, cars, college, etc skyrocketed when banks had an endless amount of credit to loan. And as I already explained, this leads to a system of debt. People forget how to live within their means. Your class warfare argument was also used by government officials and bankers who benefit from this current system, to give home loans to people who could never afford them. Look where that put us today. Nice try.
| quote: | | ^^ this is what happens when people who don’t understand economics try their hand at it (ala ron paul). Grow up, get an education and stop wasting your time with conspiracies. |
Keynesian (anything goes) economics have resulted in the current economic status. Your constant attack of character is proof that your education on this subject is lacking. I realize by now that you and your Marxist friend are only going to believe and understand what you want to. Even if its not the truth. So have at it gentlemen. |
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