The Unstable Element in the Inflation/Deflation Debate
The article asks the question, 'Who are the Owners of the Fed?'
Who do Bernanke and Yellen work for. Apparantly no one that knows is talking.
Is that as scary as it sounds?
Who do Bernanke and Yellen work for. Apparantly no one that knows is talking.
Is that as scary as it sounds?
http://www.lexrex.com/enlightened/writin...
If we only had politicians like that again, (other than the Trail of Tears).
Thanks for the link.
By the way, I write frequently about the Fed and markets on my website, straightlinelogic.com, and I have a novel, The Golden Pinnacle, which makes a straightforward case against central banking. I was involved with the financial markets for many years.
Up until the creation of the FED...there had been nearly 30K different types of currency in circulation.
What about "Wildcat" banks? Would we want a return to that? Just some questions to ponder/discuss.
I'm a fairly quick study, but, need to get my head wrapped correctly around the "basics". Then...into your archives....again..
"The power of a question"...priceless!
Is your book available through B&N?
Regards,
O.A.
Another thing lacking is any substantive, believable evidence of any true benefit of the Fed for the people at large...
Regards,
O.A.
The result is we have a reliable medium of exchange that roughly maintains its value over several months. We don't want to change our menus every week and don't have to worry about having a small stack of cash being eaten away by inflation. We might want _never_ to change our menus and have things stay always the same, but that's impossible given how the economy changes over the years with new business developments.
All my adult life the Fed has done a good job of maintain low, stable, and positive inflation, although I vaguely remember high rates of inflation as a child.
The controversial result of the Fed system is that it can attempt to "prime the pump" if nobody's hiring until people start buying and nobody's buying until there are more jobs available, resulting in building, workers, and equipment sitting idle when they want work. This system is far from perfect, but I find it preferable to priming the pump with gov't spending or arbitrarily picking some commodity that may gain and lose value on its own as our medium of exchange. I clearly understand the idea of doing nothing and just letting people prime their own pump, as it were, but it appears to work okay to have a national bank do it.
Some people say the system enables deficit spending, but I think that's only true to the extent that being the world's reserve currency enables deficit spending.
I wish we could have a committee similar to the Fed Open Market Committee that could tell the gov't how much deficit or surplus to run. There are loads of problems in the details, but I like the concept.
http://www.federalreserve.gov/faqs/about...
http://www.factcheck.org/2008/03/federal...
http://www.google.com/url?sa=t&rct=j...