End the Fed

[Red eyes]

How likely do you guys think it is that we'll get an audit of the Fed anytime soon. I know its not lookin' too good right now, but you never know. Also, for the sake of the economy and limited government, how important, do you think, is ending the Fed? I realize that the chances of it happening are slim-to-none, I just wanted to know what your guys' thoughts are.

[DumbAss Tanker]

Several will differ with me, but I'm not keen on the idea.  For all their flaws, they are a valuable buffer in the monetary system, without them we'd have economic swings like a bipolar Lib woman with near-terminal permanent PMS and somebody else's credit cards.

[JohnnyReb]

Several will differ with me, but I'm not keen on the idea.  For all their flaws, they are a valuable buffer in the monetary system, without them we'd have economic swings like a bipolar Lib woman with near-terminal permanent PMS and somebody else's credit cards.

That bad, huh?....that could smart a little.

[DumbAss Tanker]

That bad, huh?....that could smart a little.

The marketplace hates uncertainty, prior to the Fed the 'Boom-and-bust cycle' was pretty extreme by modern standards and pretty darn frequently-cycling too, I think about every decade had "Panic of," "Crash of," or something of the sort, sometimes two in the same decade.   

[NHSparky]

Sometimes more than that.  Remember also, that most Americans used small banks which were more prone to failure--and if a bank closes in a town, that whole town is affected.  Now, short of B of A or several branches of the Federal Reserve Banks going tits up, the swings, as DAT has stated, aren't nearly as severe as they were.

[The Village Idiot]

Several will differ with me, but I'm not keen on the idea.  For all their flaws, they are a valuable buffer in the monetary system, without them we'd have economic swings like a bipolar Lib woman with near-terminal permanent PMS and somebody else's credit cards.

The federal reserve is doing awesome, the dollar has only lost about 98% of its value since they started being a "buffer".

What really needs to end is fractional reserve banking.

[SSG Snuggle Bunny]

Several will differ with me, but I'm not keen on the idea.  For all their flaws, they are a valuable buffer in the monetary system, without them we'd have economic swings like a bipolar Lib woman with near-terminal permanent PMS and somebody else's credit cards.

Her name is Nancy.

[DumbAss Tanker]

Well, FGL, that would certainly take care of that annoying little mortgage problem issue, since nobody would be writing any if that happened.  Or 90% of car loans, small business lines of credit, and student loans.  Probably still enough credit available then to keep credit cards going, but the credit limits and balance carryover limits would drop back drastically.

[NHSparky]

See, this is what the Ronulans and their "End the Fed", cut 2/3 of government spending, close the IRS, etc., crowd doesn't realize.  Yes, there need to be changes made, but what they want to do is akin to taking a car doing 100 mph down the freeway towards a cliff, and trying to change directions by immediately throwing it into reverse.  While you might not be going towards the cliff anymore (eventually), you're not going to be doing much of ANYTHING for a while, either.

[Doc]

Well, FGL, that would certainly take care of that annoying little mortgage problem issue, since nobody would be writing any if that happened.  Or 90% of car loans, small business lines of credit, and student loans.  Probably still enough credit available then to keep credit cards going, but the credit limits and balance carryover limits would drop back drastically.

DAT, I'm with you on this one.....even though the founders feared an institution like the Fed, they certainly couldn't envision the scope of the economy that we have today.  There needs to be something with a moderating effect on the financial markets.....so long as it is above political influence.......which, unfortunately, it appears now not to be.

doc

[The Village Idiot]

DAT, I'm with you on this one.....even though the founders feared an institution like the Fed, they certainly couldn't envision the scope of the economy that we have today.  There needs to be something with a moderating effect on the financial markets.....so long as it is above political influence.......which, unfortunately, it appears now not to be.

doc

Really, artificially inflating the currency and creating fiat money out of thin air is "moderating"?

Boom and bust cycles are caused by government monetary policy, not by free markets.

[Doc]

Really, artificially inflating the currency and creating fiat money out of thin air is "moderating"?

Boom and bust cycles are caused by government monetary policy, not by free markets.

Actually that is not completely true......in the early 20th century most were caused by conjecture and panic due to single minor events that cascaded into full blown meltdowns.  Improvenments in communication has eliminated some of that, but the markets still respond to "emotion" at times rather than actual measurable monetary events.

When one looks at the actual "chain of command", the president presents a budget, congress passes it, and the Treasury Dept. is responsible for funding it.......either by selling bonds (borrowing) or printing (devaluing) the currency.......the Fed just manages what they have to work with from these branches of government.

All the Fed can regulate is the supply of credit.....and how much you have to pay for it.......



doc