abolish the FED

Shaun108 said:
Yeah, lets all of us start trading and batering with camels, donkeys and goats like Saturnz wants.
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where did I ever say that that is what I want? do you think thats what Milton Friedman wanted?
 
saturnz said:
where did I ever say that that is what I want? do you think thats what Milton Friedman wanted?
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He can't argue your points, so instead he resorts to a strawman. The product of a lost argument.
 
saturnz said:
Just about any system without central banks would be better.

Evidence shows they do not do what they are designed to do.

Central banks have only been around for just over a century so that strongly suggests they are not necessary for an economic system to function.

Also economic theory shows that monopolies create ineffiecies in markets (dead weight loss) and central banks are legislated monopolies in so far as they have the strongest influence on money supply and set interest rates- the entire economic world stops to hear what the FED does and the entire SA economy stops when the SARB announces interest rate changes.

This suggests their monopoly power impacts just about every economic aspect of our lives- and given that they have failed in their objectives this is clearly not sustainable.
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Before a central bank the king or emperor used to issue the currency.
 
SoldierMan said:
Of course it's relevant! It's like a fox commenting on how the hen house is being run (by other foxes). He's a former Fed chair for goodness sake.

Anything is better than the current arrangement. The Fed is a PRIVATE corporation. They are supposed to act in the best interest of the country, but do you honestly think that is the case?

Like I said they have never prevented any financial incidents and more than likely have contributed to them. It has been proven that a private run Fed is not the way to go.
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How do you feel about the ANC taking control of the SARB?
 
Bewlen said:
So.... no prediction then?
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Predictions are a fools game, especially in economics, everyone knows that. What counts is how you prepare for the inevitable so you don't get caught out.

We will see how much longer they can keep the money printer going before deflation kicks in heavily and the world realises that the dollar has effectively become monopoly money. Run out? Just print more.

Yes, it still carries value, but only as long as there is confidence in it. How long will that last given the massive money printing that is currently underway.

With China due to release a digital Yuan soon, there are rumours that they will back it with gold, if that happens the dollar is toast.

Saudia Arabia has made subtle moves away from the US and other countries are trading oil for gold and other currencies. The dollar is losing it's status day by day. If it loses it reserve currency status then it really and truly is game over for the dollar.

But hey, if you think that all is rosy in the world, you keep on investing in dollars and the stock market, I wish you well :)
 
Milton Friedman doesn't really have any argument here, I believe the clip might be out of context. But mainly he says the Fed has done more harm then good by financing inflation during some periods.

When it was in fact the government the borrowed money for infrastructure spending and war.

The other problem is government has given central banks a monopoly by legalizing what is legal tender so there cannot be a alternative currency. Each country basically has only one. This is not the FED or SARBs fault.
 
SoldierMan said:
LOL You obviously completely missed the 2008 housing market crash :ROFL: What were you like 10 years old or something? That would explain a lot.
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2007/8 wasn't the feds fault. They aren't in the business home loans.
 
rietrot said:
Why not?
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Because they have used and abused it now for several years. They have essentially become the market, without the free money it will all come tumbling down.

QE1 was supposed to be a once off thing, instead it is now QE to infinity. They can't stop. When the Fed becomes the market you know all is lost.

They should have let the market dictate, instead they threw more money at the problem and just blew the bubble even bigger and bigger, propping up zombie companies that cannot even afford to pay off the interest on their debt with their profits made. It's right royal mess that is only being made worse by bailout after bailout and handout after handout.

Just as in the past they have failed to deal with the problem instead making it worse, they have essentially kicked the can down the road and so what is coming will be that much worse.

There should be no printing press to infinity. It might take a little longer but the end result will be the same.
 
SoldierMan said:
Predictions are a fools game, especially in economics, everyone knows that. What counts is how you prepare for the inevitable so you don't get caught out.

We will see how much longer they can keep the money printer going before deflation kicks in heavily and the world realises that the dollar has effectively become monopoly money. Run out? Just print more.

Yes, it still carries value, but only as long as there is confidence in it. How long will that last given the massive money printing that is currently underway.

With China due to release a digital Yuan soon, there are rumours that they will back it with gold, if that happens the dollar is toast.

Saudia Arabia has made subtle moves away from the US and other countries are trading oil for gold and other currencies. The dollar is losing it's status day by day. If it loses it reserve currency status then it really and truly is game over for the dollar.

But hey, if you think that all is rosy in the world, you keep on investing in dollars and the stock market, I wish you well :)
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Money printing cause inflation not deflation. For deflation like that you would need a shortage of money.
Nobody trust China, good luck going over and claiming your physical gold.
 
SoldierMan said:
Because they have used and abused it now for several years. They have essentially become the market, without the free money it will all come tumbling down.

QE1 was supposed to be a once off thing, instead it is now QE to infinity. They can't stop. When the Fed becomes the market you know all is lost.

They should have let the market dictate, instead they threw more money at the problem and just blew the bubble even bigger and bigger, propping up zombie companies that cannot even afford to pay off the interest on their debt with their profits made. It's right royal mess that is only being made worse by bailout after bailout and handout after handout.

Just as in the past they have failed to deal with the problem instead making it worse, they have essentially kicked the can down the road and so what is coming will be that much worse.

There should be no printing press to infinity. It might take a little longer but the end result will be the same.
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It's their currency, they can print however much they like. If you don't like it don't use dollars.
 
rietrot said:
2007/8 wasn't the feds fault. They aren't in the business home loans.
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But how they handled it was of their doing.

They should have let the pieces fall where they may. Yes there would have been immediate financial pain, but it wouldn't have lasted that long and the dead wood would have been removed from the system. Instead they bailed out many and so only blowing the bubble so much larger. And continue to do so.

They essentially created too big to fail, and too big to fail is too big to exist. And guess what too big to fail became to big to jail and so those banks now know they can get away with murder and regularly do. All they get is a slap on the wrist in the form of a fine and go back to doing exactly what it was they were before. The privileged few.
 
saturnz said:
the government was the king, or the emperor?
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Same thing really. Central authority in charge.
In anyway tge Fed just does what the government wants it to do. So you have no real reason to complain.
 
rietrot said:
Same thing really. Central authority in charge.
In anyway tge Fed just does what the government wants it to do. So you have no real reason to complain.
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can you provide a reference that a king or emperor was the same thing as the US of A government in 1899, or is this just your opinion?
 
SoldierMan said:
But how they handled it was of their doing.

They should have let the pieces fall where they may. Yes there would have been immediate financial pain, but it wouldn't have lasted that long and the dead wood would have been removed from the system. Instead they bailed out many and so only blowing the bubble so much larger. And continue to do so.

They essentially created too big to fail, and too big to fail is too big to exist. And guess what too big to fail became to big to jail and so those banks now know they can get away with murder and regularly do. All they get is a slap on the wrist in the form of a fine and go back to doing exactly what it was they were before. The privileged few.
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Way too much conspiracy nonsense.
 
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