I don't agree with this proposal at all, but I'm curious if this is gaining traction with mainstream liberals. I'm referring to the below. http://againstausterity.org/fed Right now there is a small "Tax Wall Street Party" that really pushes this. I'm also aware of Warren's argument that we should "Give students the same deal as big banks". I'm wondering if over the next few decades the debate of ending the Fed vs. nationalizing the Fed will turn mainstream. I would imagine that a lot of democrats find this appealing, am I wrong? I just see this idea as an inflation tax. In practice it would be like funding state projects through a consumption tax that hits the poor first. I know that fans of this proposal claim that economic growth would be so sudden that there would be no price inflation, but thats not how the timing would work. The market would quickly be dumped with new cash, and any theoretical economic growth from the long term infrastructure investments would take multiple years. Also, new credit doesn't eliminate economic scarcity. Central planning would direct the use of resources, and investments that the private sector would like to make with those resources will not be feasible. We would be relying on a small group of central planners to determine what we are forced to invest in.
Even if it succeeded at its goal of conquering full employment, it does not follow that full employment was necessary. Also, once the inflationary bust liquidates all the bad assets, it would be easier for the fed to bail out the bankers without political scrutiny like the 08 bailouts. Such as going negative on interest rates to buy up bad bonds. Plus those bonds would be worthless, 0% coupon 100 year bonds? No one in their right mind would accept that as "solid collateral", it's bassically a big swindle scheme to give a (*)(*)(*)(*) load of money for nothing. Idk how democrats don't understand the income inequality they espouse so much is caused by moronic policies like this
So, they want to force us into way more debt (more trillions in funny-money dollars) and tax "Wall Street" to pay for it? That's heaping failure on existing failure.
