Why End The Fed?

Yes its a public college when I learned how the fed operates. I own the politically incorrect guide to the great depression and the new deal. What do you wish to reference from that book? And they kept the dollar steady for over a hundred years because congress had the power to fix the weights and measures of gold. But thats no longer how we operate and there are some serious questions about how a gold standard would work today. Listen, I'm searching for answers. I look beyond what I was tought in college. Thats why I took no side and left you with an open ended question.

 

What is more important than money? Sure family, but your family needs to eat. The FED dictates money. It is where the buck stops. Everyone has time to learn how it works when they're young and in school. But instead we learn art, social studies, fairy tale history. Sure, English, math and science are needed, but how many people who are educated to the hilt in those subjects are in debt until they die? Money is everything in our society. Every detail should be taught. It is no great coincidence that those who know how money works, have children who know how money works. The knowledge of money is more important than the actual capital. That knowledge should be free and universal. On that day we can say those who are broke truly deserve to be.

 

What are the steps that lead to lowering or raising interest rates and how long does this process take? Furthermore, how does lowering and raising interest rates push us to full employment and away from over employment? If you cant answer this question you dont know how the fed operates. And most people cant answer this question.

 

Ok, I agree that money should be taught in school. But who's version? I say all theories should be taught and the students be left to decide which one they agree with.

 

Your question assumes a fact not in evedence.

 

Exactly.

10char

 

Right now, and unfortunantly, Keynes reigns supreme in academia. College students get a little but of hyek and Freidman or supply side but not much. I was happy to have an extreamly objective professor.

 

If you've read it, you would know this to be false:
Did you know that we hit the great depression because the fed refused to inflate our money and release the gold reserves

No kidding that's not how we operate anymore... otherwise we wouldn't be having this conversation to begin with. I'm advocating that's how we should operate again.

The same way it always had. What are the questions?

It is the undeniable truth that the Federal Reserve decreased the value of the dollar by about 95% while the value stayed the same for the hundred+ years prior to The Fed... how does it make any logical sense to keep this agency around?

 

Unless we convert to a compleatly free market and gold standard world wide you cant even think about ending the fed and instituting a gold standard. How would the balance of trade effect our gold reserves? How could you fight against government mismanagement? It would be impossible by todays standards to complete. I am flipping through the book now.

EDIT. The book agrees with me. Deflation, not inflation, was the problem. p64-65. And their source (Freidman) agrees with me to.

[ame="http://www.youtube.com/watch?v=O7pnjzCuSv8"]YouTube - ‪Milton Friedman explains role of gold in Great Depression.‬‏[/ame]

 

The fed manipulated interest rates with open market operations, the discount window, and the reserve ratio. Most people probably can't tell you that, but most people don't want to end the fed. Please stick to the issues and don't make ad hominems.

Manipulating interest rates is only detrimental to the economy. Market prices ate necessary in money lending just like they are in every other industry.

 

But until higher education is free, it is not universal. People should have economic classes, starting out simple in 8th grade all the way through 12th. I am working poor, made a bunch of bad choices, my fate is mine to deal with until I choose to change it. But I was smart enough to actively seek out information on money and I live a more comfortable life than friends I know who make close to 6 figures, because their lives are nothing but living to pay off debt. I pay cash for everything and they have to have me buy the beer most of the time. It's nuts how uneducated people are for something so crucial to our happiness in this life.

 

I got no Hayek or any austrian school from the economics department. Keynes reigns supreme because his theories can be manipulated to support the modern socialist agenda.

 

It was a question. Do you have an answer?

 

Your assumed a fact not in evedence. Do you know what that means?

 

Keynes reigns supreme because academia doesent like to be told that an economy is something that cant be controlled.

 

This.

Essentially, the argument for the Federal Reserve bank is so the US can spend at out-of-control rates and so that interests rates can be kept low. But the result is basically a control over trade and all transactions by an unelected group of bankers. They control the money and it's relative value by causing inflation or disinflation.

The Federal Reserve not at all transparent to the American people, by their own admission.

 

I asked a question. I made no assumptions in the question. Or maybe you can point it out..

 

Yes, that is certainly part of it.

 

I thought so. Yes open market operations begin the process. But what happenes between the open market purchase and the inflation rate? How long does this process take?

 

No one knows. It is not something that can be accurately measured predicted or timed..

 

In order to assume that the fed played a roll in the housing boom and bust you must bring that fact in to evedence and qualify it. You failed to do so. You may be right. You may bring something in that I was unaware of. But until you qualify the claim you cant assume it as fact and ask a question that involves that assumption.

 

It was a question. Do you know what a question is? So answer it or don't, but evading doesn't get us anywhere.

 

The only argument people can make is it keeps inflation low, yet I don't know anyone who doesn't complain about how prices are out of control when it comes to basic necessities. Sure you can get into technological gizmos and gadgets on the cheap, but to get the most advanced will still cost through the nose. You can get goods from Walmart on the cheap, but to get clothes that wont disintegrate after a few washes you will have to pay 10 times more than if "free trade" and the FED never existed. Everything is a sham. The craziest part of the whole equation is that for how many are catching on, the great majority of Americans are still absolutely clueless as to what a joke our working lives are. At this point, I can't help but think to try and make more money in my life is validating our corrupt economics, like voting for either of the 2 traitorous parties validates the corrupt electoral process.

 

Because central banking is the most corruptible and powerful of institutions.

"I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a moneyed aristocracy that has set the government at defiance. The issuing power (of money) should be taken away from the banks and restored to the people to whom it properly belongs."
- Thomas Jefferson

And because central management is a proven failure.

"The modern theory of the perpetuation of debt has drenched the earth with blood, and crushed its inhabitants under burdens ever accumulating."
- Thomas Jefferson

Listen to Tom. He was a smart guy.

I would abolish the central banking system and allow the market to allocate money and credit, just as it allocates gold and oil.

 

We had a country before the Federal Reserve, you know.

Let me guess, you just took macro in college.