How is new money created you ask? It's the story of IOUs.

it is extremely well know that the Fed mandate gives it control of the money supply supply and not much more. Do you understand?

 

exactly its mandate is about inflation/deflation or just monetary policy

 

you have not read even the basics on the Depression. It was caused by mistaken monetary policy that enabled the money supply to shrink 33%. Case closed. Recent housing crisis, China's and Europes messy economies no longer lead to depression because we learned the lesson of 1929. Now you've got the basics. Now when there is a crisis they keep the economy liquid so the problems in one industry don't spread to others causing depression.

 

LOL, that's what I just posted. You should read and think before posting.

 

It does not matter what mandate it is given, Congress can grant the Fed the mandate to insure there is no poverty or hunger and there is world peace, that doesn't mean the mandate is possible.

You miss the most basic principles of economics. All the fed can do is try to influence the economy, it cannot control the economy, and if it cannot control the economy then it cannot control inflation.

 

LOL, your faith in a handful of people to control a global economy shows a total lack of reality.

 

No one said the congress could give the Fed the mandate to control poverty or world peace. Do you have any idea what your subject is?do you know what a strawman is?

 

OK once again here are the basics for you monetary policy is primarily designed to control inflation deflation through the Federal Reserve system they do that perfectly by determining the amount of money to be printed . The evidence of this is that we have no inflation or deflation rather than say 100% 500% 1,000,000% inflation/deflation. General control of the economy would not be in the hands of the Federal Reserve nor was it ever intended to be. General control of the economy would be term would be determined by the choice between capitalism and socialism between high and low tax And by cultures orientation towards hard work and material progress. Now you've got the basics.

 

The point is the feds mandate to control inflation deflation is 100% possible and achieved every day that is the only mandated it has and the only one that intelligent people wish it to have

 

If so why are you so afraid to tell us what the reality is and why you think it's the reality

 

LOL, you are intellectually limited and missed the point completely.

That point is that Congress can authorize the Fed to pursue all kinds of objectives, authorization does not make the mandate achievable or realistic.

 

Total BS. The govt has repeatedly adjusted the basis for the measure of inflation (the CPI), the first adjustment was proposed under President Clinton but implemented under Reagan. Every one of these changes to the CPI calculation results in a reduced CPI. Why? Because the govt budget is tied to the CPI - social security, govt pensions, military pay and retirement, medicare, etc. Even a small reduction in the CPI calculation will over time make a huge difference in the growth of the govt expenses by reducing the payouts to citizens. Read the Simpson-Boles budget plan (National Commission on Fiscal Responsibility and Reform ), they openly proposed "improving" the CPI for that very reason.

But when the CPI is "improved" - and the changes always result in a decrease in the CPI - it means the CPI does not represent the prices (inflation) people actually have to deal with in everyday life. Over time, the gap becomes very large and has a big impact.

Go here http://www.shadowstats.com/alternate_data/inflation-charts to see the inflation rate as calculated by the official 1980 and 1990 method.

Notice the difference? Its easy to claim you control inflation when you fudge the data.

 

Your constant, puerile claims that I am "afraid" to demolish and humiliate you for your nonsense when I do so as often as I have time for are nauseating.

It's wrong in too many ways, on too many different levels, to even know where to start. But the Fed does not instruct private banks how much money to create, its target isn't 0% inflation, and the economy is not thereby made more efficient.

 

The feds mandate is not to control the economy but to control inflation and deflation. Now do you understand

Actually the feds job is to in effect instruct the banks how much money to create so as to avoid inflation or deflation the fed exists to maintain efficiency in the economy by avoiding inflation and deflation . The feds target is in effect 0% inflation/deflation not 100% 200% 10,000% or 1,000,000%. Isn't learning fun

 

The feds mandate is to control inflation deflation not to control the entire economy. I assume you have that straight now?

 

Yes the congress could authorize the Fed to create world peace or do anything it wants but it hasn't yet it has only authorized it to control inflation and deflation at around 0% so as to maximize the monetary efficiency of the economy . Do you understand now?

 

The Congress has only authorized the Fed to control the money supply at around 0% inflation and deflation the Fed has by and large achieved its objective which is why inflation deflation Is about 0% rather than 100% 200% 1,000,000%.

 

To control inflation means you have to control the economy.

And the actual data (modifications to the CPI) proves the Fed has not been controlling inflation.

 

Read the data. Do your research. Educate yourself. The data proves the Fed has not been controlling inflation.

 

not according to MIlton Friedman Keynes and those who run the Fed.
to control the economy you would have to be GOD. you make no sense.None!!!

inflation is about 0% because fed control so well, that is why it is not 100% 500% 10,000 %

 

any reason at all to say that???

 

Look at the graphs. Look at actual prices. The govt calculated CPI is false, its artificially and intentionally low for budgetary purposes - Simpson & Boles openly admit it.

 

so there is a little inflation!!!! So what???????????? gas prices are at 15 year low most countries are worried about deflation not inflation

 

Sure. But you don't. Watch:

"In effect" is not the same as your claim, which was false, and I called you on.

Wrong again:

"The Congress established the statutory objectives for monetary policy--maximum employment, stable prices, and moderate long-term interest rates--in the Federal Reserve Act. The Federal Open Market Committee (FOMC) is firmly committed to fulfilling this statutory mandate."

https://www.federalreserve.gov/faqs/money_12848.htm

See above.

Yeah. You should try it.

 

I thought you were a free-market guy. Why your support for the state control of money?