How Long Before the Fed's Days Are Numbered? »

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• eezzbeatComment removed: Hard Banned2 Replies

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    tadair9195 months ago

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    I'm glad you brought this up. This is a common myth. In response I have a few analogies.
    
    This argument is kind of like saying "we cannot possibly measure the size of microbes because inches are too big." Well, not exactly. But I think you know what I mean.
    
    Here is a good counter argument from Hoppe, which I hope sets the record straight for you:
    
    "Once a money is established, any stock of money becomes compatible with any amount of employment and real income. There is never any need for more money since any amount will perform the same maximum extent of needed money work: that is, to provide a general medium of exchange and a means of economic calculation by entrepreneurs."
    
    Or put in lay man's terms. In football, the game would not be played any differently if you got 60 points for a touchdown and 30 points for a field goal. Or .006 points and .003 points for that matter.

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      tadair9195 months ago

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      The total amount of gold that has ever been mined is 142,000 tonnes. If half of that gold disappeared, it would still be viable to use as money, and prices of goods would simply adjust downward to fit the quantity of money.

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• icemayerComment removed: Spam
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  nostalgia5 months ago

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  FTA:
  America's central bank hasn't just failed in its economic mission. It's track record as a regulator also leaves a lot to be desired. Among the many questions people should -- and will -- be asking is: how come the Fed was ignorant of and did little to rein in the leverage and lending misadventures of America's banks, many of which have long had Federal Reserve examiners ensconced in their offices? Moreover, how is it that an institution that should have known about the intricacies of derivatives was so oblivious to the threats posed by these "weapons of financial mass destruction"?
  
  The truth is, aside from those periods when conditions and markets have set out a relatively easy path for central bankers to follow, the Federal Reserve has not lived up to its mission or its promise.
  
  That sums it up pretty well
  It isn't just Ron Paul in the House (one report I heard said Pelosi is blocking the bill from coming to the floor), in the Senate Senators Sanders and Demint have a similar bill
  When you see these 2 Senators coming together to sponsor legislation you know there is a problem that needs to be addressed

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  canadianrancher574 months, 4 weeks ago

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  I enjoyed the article and agree with many of the points in it, like corporate American surviving on government handouts, also even Greenspan stated once that he was not sure of derivatives or how they even worked.
  I am not sure that an economy can work with the idea of a fixed amount of money since economies have many different parts to them and are ever changing, but at time we have new technology entering without old technologies leaving so limiting money supply would cause a real demand which would increase interest rates and stall progress.
  The measures that are being used by the fed to stablize the economy right now are a joke and these guys don't have a clue what the solution is, money was printed in the US and in Many other countries of the world to sustain speculation and also a standard of living which in many cases was not supported by the production of goods or services. The fed has become an institution which is not concerned about the well being of the country but only itself.

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    tadair9194 months, 4 weeks ago

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    greenspan once argued persuasively in favor of a gold standard and against the concept of a central bank. read his essay here: http://www.usagold.com/gildedopinion/greenspan.htm...
    
    snippets:
    
    "It is necessary first to understand the specific role of gold in a free society."
    
    "In the absence of the gold standard, there is no way to protect savings from confiscation through inflation"
    
    "This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights."

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      canadianrancher574 months, 4 weeks ago

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      Thanks for the link tadair, after reading it it sort of confirms how I have felt about Greenspan, he understood the road that we were on with regards to the printing of money without any tangible asset to back it up. I usually made a point to listen to him when he spoke as the Chairman of the Federal Reserve and he was always warning about the bubbles that were being formed by creating excess money . It was interesting to read in the article about the idea that if one goes away from the gold standard then we would be free of economic slowdowns, so much for that idea.
      The comments on the idea of welfare state is something that I have been thinking of lately, as more and more of the peoples money ends up in fewer hands it stands to reason that the governments will be called on to take up the slack, and this ends in a more socialist country, Every dollar that is printed by the federal reserve ends up costing someone interest and this drain has now reached the point that economies are collapsing because of it, I am sort of a liberal person but the creation of the federal reserve way back in 1913 seems like a socialist idea to me, it put the taxpayer on the hook for keeping the economy going and alll the while puttting a vast amount of money in to few hands .

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  tadair9194 months, 4 weeks ago

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  LIVE on CSPAN right now! Financial Committee Hearing on Auditing the Federal Reserve.
  
  Today's hearings on Federal Reserve policy will also be used to introduce HR1207 for debate by the members of the House Financial Services Committee. This will be a landmark day for the movement to open the books on the untouchable Central Bank.
  
  http://cspan.org/Watch/Media/2009/07/09/HP/R/20584...

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