As we know there was no federal taxation in the US before Federal Reserve. The Fed lends its money to the US government and money is paid back via us Tax payer. Because of congress not being responsible the US debt is 34 trillion. Out of control debt goes up a trillion every 90 days. This has resulted inflation going out of control.
Should their be a reset and the private western central bank Federal Reserve be dissolved ? Us government programs, contracts and benefits be cut back That we go back to the original US dollar backed up by the gold standard (not a federal reserve note) ? That way spending will be under control.until it was repealed in 1871. The Federal Reserve in the past year has moderated inflation and kept us out of recession. So getting rid of them would be a really shitty idea and would do ZERO to cut the budget deficit. Going back on the gold standard would cause our economy to go into nuclear winter.
You're a fool, Dave. Go back to diddling in penny stocks.
People did not start filing federal income tax returns until 1913. Corporations did not start with income tax holding until 1943.
Going back to the gold standard is a good idea. It would force governments not to over spend. Yes in the short run it would be painful. We could use some deflation to cost of living back down so young people can afford housing.
Wriggle around all you want but that''s all I said.
FDR's new deal was the start of government really looting the economy to buy votes. Once politicians saw how well it help them win power, they went full retard.
…into their favorite conspiracy theory ever since that dude wrote that book The Creature From Jekell Island. I probably spelled Jekell wrong. Whatever. Haven’t looked at this book since I was 18. The premise that things were better before the Fed came along is really stupid. Nobody looks at what was happening in the economy before then. We had a period of endless bank failures. Imagine a 2008 style financial crisis every 3 years. From 1872 to 1896 we had The Long Depression. People today complain about inflation, but deflation can be far more brutal. Many farmers saw the value of their debts continually rise until it broke them. Many lost their farms and were driven to work in the factories in the cities, which back then meant you might lose a limb while you’re at work. The Fed coming along was a blessing because it stabilized the economy. Of course then the Great Depression happened, but one of the reasons it happened is because economists didn’t know what they know now. The US remained on a gold standard until Nixon when we pulled out of Bretton Woods and the US currency was left to float. If you have very low inflation, things are fine. If savings can grow faster via investments than inflation you still are getting ahead. But debts become cheaper over time and are easier to pay off. This worked for us for decades. The problem we have now is high inflation caused by the Fed keeping interest rates too low and government spending being sky high. This wouldn’t be a problem if it wasn’t for Congress being less responsible with the budget than your average crackhead or junkie.
That's very comforting. But I"m betting it doesn't last. Then again, being sane compared to Dave Mogal isn't much of an accomplishment.
Willy is in touch with his feminine side.
I always thought libertarians were nuts when I was younger, but I have to admit their position becomes stronger as the government has gotten bigger.
These big aspects to this that a lot of people never consider. For instance, nobody ever has a duel anymore. The weird thing is that duels went away in part because of the size of government. We may think of duels as a barbaric practice today, but in that time frame it made a lot of sense. As crazy as that sounds.
I'm thinkin' probably yes. His last two posts have swung between the rational and the completely looney.
I’m completely opposed to libertarianism…but it’s harder to make the case that they’re bonkers after you have big government doing things like Covid lockdowns and forced vaccinations. I suppose I agree with libertarians insofar that ideally government should leave you the hell alone, but in the real world it’s insane to use markets alone to try to prevent things like dumping factory waste into rivers. Or to keep say lead paint off of toys. I never had a high opinion of Alan Greenspan, but he did show that you can use the Fed to prevent economic disasters when he injected a shit ton of money into the economy when the stock market crashed in the late 80’s. I think this was 1988, but I don’t remember. It’s nice to have a Fed to do these kind of things. Libertarians argue that this distorts the market. Well, maybe it does. And maybe it also, when used correctly, blunts the worst aspects of market corrections. Like having a safety net to protect you from a fall. You still go down, but you don’t get killed. The problem we had is after the financial crisis of 2008, the Fed freaked out and kept interest rates down for far too long. They should have done away with QE after it was clear the economy had begun to recover.
need only look at the US economy of the late 19th century. It was a litany of crashes, monopolies and abusive labor practices. I'll take what we have now.
PS: Bi-polar Willy is making sense again. It can't last.
If an institution functions as intended, and the intention behind them was sane, then it’s fine to have them. But if an institution is wholly corrupt then you gotta ask yourself if we’d be better off without that institution.
Let’s take this agency I picked at random.
The Center for Nutrition Policy and Promotion is part of the USDA. It’s mission is to “work to improve the health and well-being of Americans by developing and promoting dietary guidance that links scientific research to the nutrition needs of consumers.”
Suppose we found out that the CNPP said that Americans should consume nothing but Ho-Hos, and the head of the CNPP had a side gig working for Little Debbie. Well, that would certainly mean firing this person. But what if the new head said Americans should consume nothing but Snicker’s bars. At that point, it might be better to think that we might be better off with no CNPP at all.
I'd say the Fed under Powell has gotten it right. It has fought inflation reasonably well and done it without triggering a recession like in some other world economies. Powell is one Trump appointee who turned out rather well. Probably the only one, but give credit where credit is due.
I think it’s easier to call things after the fact than when things are happening. I certainly think inflation is too high. I think right now I’d prefer a recession to inflation. There’s a generational divide to be mindful of. I don’t have to worry about a mortgage. I’m guessing you don’t have to worry about it either. I had an employee who was 15 years younger than me and this employee struggled to go from renter to home owner. But I encouraged this person to bite the bullet and do it and was rewarded handsomely for doing so. I’m seeing a lot of people in their 20’s who feel completely hopeless about this. That between home prices and interest rates they don’t think they’ll ever be able to afford a home. A lot of young people feel completely hopeless about this.
A little more info about Powell:
http://en.wikipedia.org/wiki/Jerome_Powell
"... He became a member of the Federal Reserve Board of Governors after being nominated to the post by President Barack Obama in 2012, he was subsequently elevated to chairman by President Donald Trump (succeeding Janet Yellen), and renominated to the position by President Joe Biden. Powell built his reputation in Washington during the Obama administration as a consensus-builder and problem-solver. ..."
I'd say the Fed under Powell has gotten it right. It has fought inflation reasonably well and done it without triggering a recession like in some other world economies. Powell is one Trump appointee who turned out rather well. Probably the only one, but give credit where credit is due.