Respectfully disagree. Fractional reserve banking is not what created all of this debt. Government FISCAL excesses are what created all of this debt. And TOO LITTLE regulation, not too much, is at the root of the current crisis.
Blaming the Fed for the current problem is like blaming farmers for obesity.
I dont blame the drug user, i blame the drug dealer in this case. The drug in this case is money and the creation thereof. Politicians spending money they dont have pushing it on future tax payers and future generations doesnt effect them, so they naturally dont care. This allows them to spend money and keep them in office. Why is this? Because the people are spoiled and do understand economics. This pool of people is the same pool that produces the politicians, so naturally they dont understand economics and bingo....the cycle continues.
But why is it so easy to do this? Because the FED wants the government in debt. It wants them at war, it creates the governments inability to sustain a balanced budget just klike you said before. Its creates excess. Thus they borrow from the FED at interest. Now not only does the FED had to be payed back at interest, for every deposit with each dollar created the banks then have the ability to loan out as much as 9X that original dollar. Now who profits from that scheme giving out said new loans? The Banks of course. And what is the FED composed of? Private banks are a part of it. And you say fractional reserve banking doesn't create debt? :missingte
Ill grant you the regulation has to be better, no doubt, with that said however, ill side with Milton Friedman on this one and say that the system is flawed.
You would have been fine if you would have stopped after the first paragraph. By your logic, the Fed's policy always has been and always will be one of loose money and low interest rates - lend lend lend lend lend and lend some more. Of course this isn't the case. While the Fed has often acted unwisely (q.v., Alan Greenspan), it is necessary to manage the money supply, prevent economic instability, and control inflation. Had it not been for Volcker's tough, tight, policy in the early 80s, we never would have recovered from the Carter era.
Mama, this is the type of circular logic i usually get when talking to fundamentalist Christians. Just like i try to tell them, im not debating pieces of the bible, when the book itself is suspect. So in this case, im not going to pretend that some periods of time are better then other when afterall the entire FED is the problem. Sure Volcker did what he had to so and sure greenspan didnt, and just like the Bush Era looks like its going to be worse then the Carter era, doesnt make any of them more right. As far as the FED's logic, they want the consumer/country in debt. During Carter we didnt even have a trillion in debt. 28 years later we have about 11 Trillion. So the remedy? Print more, and thus the cycle continues. Do you dig it?
Well, this thread has now officially crossed the line that so many on this forum inevitably do - into nutjob territory. (This is especially true for the ones that mention Ron Paul) Questions:
If the Federal Reserve is so destructive, why has the US economy been unquestionably the strongest in the world over the past 50 years?
What countries in the industrialized world do not have a central bank?
Are you saying that the Federal Reserve Board of Governors is not independent and that they have a vested financial interest in loose money?
Do you realize what the standard of living would be for most Americans without fractional reserve banking?
Whenever we have a crisis like the one we're in now, scapegoating is always fun. Bill O'Reilly can blame it all on Chris Dodd and Barney Frank. Anderson Looper and CNN can have their "Top Ten Villains" list. You and Ron Paul can blame the old reliable "moneychangers". While there is certainly some validity to all of these charges - as there is to some of the points made in your video, the facts are these:
1. The Federal Reserve system has allowed American industry to be the most innovative and successful anywhere in the world, and the middle class to be the most expansive and well off in the entire world.
2. The devaluation of the dollar is primarily the result of Government deficit spending, which the population demands. No candidate for president has any chance unless they use the magic words "tax cuts". Along with promising ever increasing entitlements.
3. Even without a Fed the Government could devalue the dollar whenever it chose to, simply by printing more of them.
:drink:
If the Federal Reserve is so destructive, why has the US economy been unquestionably the strongest in the world over the past 50 years?
What countries in the industrialized world do not have a central bank?
Are you saying that the Federal Reserve Board of Governors is not independent and that they have a vested financial interest in loose money?
Do you realize what the standard of living would be for most Americans without fractional reserve banking?
Whenever we have a crisis like the one we're in now, scapegoating is always fun. Bill O'Reilly can blame it all on Chris Dodd and Barney Frank. Anderson Looper and CNN can have their "Top Ten Villains" list. You and Ron Paul can blame the old reliable "moneychangers". While there is certainly some validity to all of these charges - as there is to some of the points made in your video, the facts are these:
1. The Federal Reserve system has allowed American industry to be the most innovative and successful anywhere in the world, and the middle class to be the most expansive and well off in the entire world.
2. The devaluation of the dollar is primarily the result of Government deficit spending, which the population demands. No candidate for president has any chance unless they use the magic words "tax cuts". Along with promising ever increasing entitlements.
3. Even without a Fed the Government could devalue the dollar whenever it chose to, simply by printing more of them.
:drink:
Exponential growth is a myth when it comes to markets. Now in population you have this but we are talking wealth. Time is the answer to all your questions...and while it has served us well, its running out. Call me a nutjob call me a kook, but the reality is you cant stop the natural business cycle and you cant print your way out of trouble. What you say about people is true Mama, they are naive and completely unrealistic but that is part of the problem, it will come to an end. Your giving examples of the last 60 years...the reality is we dont have any type of measuring stick as fiat is a new concept (70-80 years). No Fiat currency has stood the test of time and if debt as grown 1000% in just 28 years...i dont know how you can see otherwise. The writing on the wall is their for those who to open up and look at the wall.
you have it backwards
the govt couldnt spend the way it does if the fed didnt exist
if they couldnt tax thru inflation (a much more painful yet harder to see tax)
they couldnt spend in such a manner
people would revolt if they knew the truth- why do you think its so well hidden?
i will give the FR credit- it is a great scheme and the beuty of it is not only does it work, but so few people realize it
It may be that you were never a big fan of John F. Kennedy, but you may see him in a different light after you learn how he took on the FEDS. He had the foresight to see what a bad deal had been struck in the creation of the Federal Reserve. He also had the courage to do something about it.which unfortunately, may have cost him his life. On June 4, 1963, President Kennedy signed a Presidential decree, Executive Order 11110. This order virtually stripped the Federal Reserve Bank of its power to loan money to the United States Government at interest. President Kennedy declared the privately owned Federal Reserve Bank would soon be out of business. This order gave the Treasury Department the authority to issue silver certificates against any silver in the treasury. This executive order still stands today. In less than five months after signing that executive order President Kennedy was assassinated on November 22, 1963.
artifically control the money supply, allowing people to profit off of lending money they create out of thin air, at the expense of the tapayerswill always lead to disaster
i really wish that people would educate themselves. I was very ignorant on these matters before. Hell there was even a time i listened to my bullshit history teachers and thought that scumbag on wheels fdr was a good president.
1. The Federal Reserve system has allowed American industry to be the most innovative and successful anywhere in the world, and the middle class to be the most expansive and well off in the entire world.
2. The devaluation of the dollar is primarily the result of Government deficit spending, which the population demands. No candidate for president has any chance unless they use the magic words "tax cuts". Along with promising ever increasing entitlements.
3. Even without a Fed the Government could devalue the dollar whenever it chose to, simply by printing more of them.
3 of the most ignorant statements i have ever read-well done
1)bullshit doesnt last forever, this country is going in the shitter fast
devalue your money enough and its time to pay your bills eventually
You can live great for a few years on credit-have fun paying for it
2)Not even close
I mean this is beyond retarded
Print money like crazy yea the dollar wont go down at all- outstanding
3)not if we had a gold standard (and the fed is still unesasary- why the fuck do private banks control the money supply, and why do we the taxpayer pay for it?)
What a brilliant scheme
Well played privated bankers well played
2. The devaluation of the dollar is primarily the result of Government deficit spending, which the population demands. No candidate for president has any chance unless they use the magic words "tax cuts". Along with promising ever increasing entitlements.
3. Even without a Fed the Government could devalue the dollar whenever it chose to, simply by printing more of them.
3 of the most ignorant statements i have ever read-well done
1)bullshit doesnt last forever, this country is going in the shitter fast
devalue your money enough and its time to pay your bills eventually
You can live great for a few years on credit-have fun paying for it
2)Not even close
I mean this is beyond retarded
Print money like crazy yea the dollar wont go down at all- outstanding
3)not if we had a gold standard (and the fed is still unesasary- why the fuck do private banks control the money supply, and why do we the taxpayer pay for it?)
What a brilliant scheme
Well played privated bankers well played
The US didn't have nor did it need an income tax until the Fed was started. The income tax was only needed to pay interest to the bankers for your money that they loan to your government. Yes, you read that right, the Fed, mostly on paper and computer, pays a small printing fee for currency, and then loans this money to your government. Your taxes pay them interest on this loan that cost the FEDS virtually nothing to make, what a sweetheart of a deal they have going for them.
