What's The REAL Reason We Even HAVE A Fed?

Discussion in 'Economics' started by gnome, Nov 19, 2007.

  1. gnome


    It's so somebody can SCREW WITH THE MONEY!!

    Do they do so to someone's advantage at the expense of someone else? Of course.

    Figure out who benefits and who gets screwed... then you will have a proper perspective. You will also come to understand why the Founding Fathers, with their knowledge of European financial history, were ADAMANTLY AGAINST America EVER having a Central Bank.
  2. 4600 posts, huh? That dwarfs me. 10 to 1 . I wonder IF your capital does?

    Thee official reason for the inception of the Fed in 1913 (believe the same year J,P. Morgan died) is 1. Full employment. 2. Stable prices.

    Eh...........roughly 5% ( of those actively seeking) is considered "full". As for stable prices, they've failed miserably. The Hershey bar makes for a great example. Maintained at a nickel (those size changed at times) until 1969. Tenfold since then.

    The real reason for the Fed is to buffer booms and busts. 1907, 1893 two examples prior. In busts, their was no confidence in paper money (National Bank Notes) and hoarding of Gold and Silver (or gold/silver certificates reedeemable in the metal). William Jennings Bryan ran on a silver platform in 1894.

    Without confidence, commerce grinds to a halt. Internal isolationism. Hence backed by the full faith and credit of the US govt. That's all a buck (Federal Reserve Note) is. Slip of paper.

    Screwing with the money. Broad generic term. Did you mean the multiplier effect of credit expansion or something more brief and reversable such as open market operations. Dutch auctions for T-Bills? That T-bills are 98% levgeragable? Eliminating silver coinage in 1965 (1971 for the half dollar) for clad? Specify.

    Rates are STILL at a generational low, and the discount rate is moral suasion.

    You might be MORE concerned about how the govt (not just the Fed) changes horses in the middle of the stream and/or spends money like a drunken sailor.
  3. If I remember correctly, both John Adams and Alexander Hamilton were in favor of a central bank (though Adams distrusted banks deeply). Jefferson and Madison were opposed.
  4. Does that mean if they owe you - they can tax the dickens out of you to get it to pay you back?
  5. gnome


    1. The "officially stated purpose" of the Fed is not its REAL purpose.

    2. Yes, I'm very concerned about how the Gummint spends... part of the same criminal cabal with the Fed.

    3. And yes, it's a good bet my capital dwarfs yours.
  6. gnome


    Now, now, now... didn't you ever hear the old saying, "It's better to keep your mouth shut and be thought a fool than open it and remove all doubt"?
  7. RhinoGG

    RhinoGG Guest

    you haven't, fool!
  8. gnome


    So, do you even HAVE a pot to piss in, or do you just talk?
  9. Joab



    As much as we bitch it's here to stay :(
    #10     Nov 20, 2007