Where Are The Fed And Central Bank Apologists Now?

[sanantonio]

As we slowly drift to socialism and economic collapse what is the excuse now for continuing this farcical fiat money system?

[sanantonio]

http://www.youtube.com/watch?v=TIbD3BGoe5g

[theanalogkid]

The same apologist will cry if the government rolls back the Bush tax cuts in an attempt to suck money out of the system. I can see it now.

The system we have now, does not encourage people to save. When you drop interests rates on the drop of a dime, no one has any drvie to save.

[resnor]

I'm not sure how many people on here actually are in favor of the fiat system. I would just like to know HOW you would propose we get OFF the fiat system. It's all well and good to say something is better than something else, but the crux of the matter is actually getting that other thing.

[sanantonio]

I'm not sure how many people on here actually are in favor of the fiat system. I would just like to know HOW you would propose we get OFF the fiat system. It's all well and good to say something is better than something else, but the crux of the matter is actually getting that other thing.

First off you have to dissolve what got you here in the first place and that's to repeal the Federal Reserve Act of 1913. After which you would have to freeze all debt with some type of promissary notes to be paid in installments (would take years to pay down) of real currency that has actual value. This would strengthen the dollar. Go to what the founding Father's intended and that is for Congress to coin money through gold and silver. This would curb out of control spending immediatly.

It wouldn't be easy but this is a crisis that is headed for mega crisis and these bail out's only stem the coming sunami.

[Nevada_Ballin]

i still find it ironic and sad as hell that banks in socialist countries such as Russia and China as well as banks in terrorist-breeding countries in the middle east will be helping to save us. Is this the proverbial "live by the sword, die by the sword" in capitolism?

[kevin21boston]

lol this is funny because you guys are tripping out because the dollar used to be so week. if the dollar was the strongest currency we wouldnt be having this convo.

the dollar is strong once again and gaining strength...come back to me in a year.

[bk1998]

I encourage any and all to read the masterpiece of Milton Friedman and Anna Jacobson Schwartz, A Monetary History of the United States, 1867-1960 .

Trying to put this nicely, it's clear that a lot of people here at VG could use a "refresher."

It might be long, and you might find it boring, but if you're serious about understanding monetary policy and it's place in our society, it is a must read.

[theanalogkid]

lol this is funny because you guys are tripping out because the dollar used to be so week. if the dollar was the strongest currency we wouldnt be having this convo.

the dollar is strong once again and gaining strength...come back to me in a year.


It has nothing to do with weak/strength of the dollar, it has to do with the rampant inflation that is incurring because this administration tries to solve all problems by printing more money.

The M3 was the truest indicator of inflation, expect the federal reserve stopped publishing it. (wonder why) So you now have to rely on private sources for it.

http://www.shadowstats.com/alternate_data

[sanantonio]

lol this is funny because you guys are tripping out because the dollar used to be so week. if the dollar was the strongest currency we wouldnt be having this convo.

the dollar is strong once again and gaining strength...come back to me in a year.

Kevin you're about to make me use the I word :p.

[sanantonio]

I encourage any and all to read the masterpiece of Milton Friedman and Anna Jacobson Schwartz, A Monetary History of the United States, 1867-1960 .

Trying to put this nicely, it's clear that a lot of people here at VG could use a "refresher."

It might be long, and you might find it boring, but if you're serious about understanding monetary policy and it's place in our society, it is a must read.

From what little I could gain from their exhaustive work is that they were all about central banking and how to make it work more efficiently. There in lies the problem there is no such animal.

[theanalogkid]

lol this is funny because you guys are tripping out because the dollar used to be so week. if the dollar was the strongest currency we wouldnt be having this convo.

the dollar is strong once again and gaining strength...come back to me in a year.

I might not even have to come back in a year. The way the Federal Reserve/US Govt is pumping money into the system like never before, inflation is going to hit hard and fast once banks start lending to each other normally again.

Lets not forget an easy money policy in the early 2000s ended up causing the housing bubble, which caused the issues we have now, and guess what there is the same easy money, if not easier money policy happening today.

Just look at the M2 or any money supply measurement for that matter.

http://research.stlouisfed.org/publications/usfd/page6.pdf

People are starting to worry about inflation, the price of gold is rising.

http://www.kitco.com/charts/livegold.html

[kevin21boston]

I might not even have to come back in a year. The way the Federal Reserve/US Govt is pumping money into the system like never before, inflation is going to hit hard and fast once banks start lending to each other normally again.

Lets not forget an easy money policy in the early 2000s ended up causing the housing bubble, which caused the issues we have now, and guess what there is the same easy money, if not easier money policy happening today.

Just look at the M2 or any money supply measurement for that matter.

http://research.stlouisfed.org/publications/usfd/page6.pdf

People are starting to worry about inflation, the price of gold is rising.

http://www.kitco.com/charts/livegold.html



* sigh *

you have much to be learned.

First and most important, is that Rajon is a beast.

Second, inflation is the last thing that will happen to this country right now. Why do you think we are headed for inflation? What makes you come up with this conclusion? Have you seen commodity prices in the last six months? They have crashed. Don't look now, but beware of deflation.

Don't just look at the price of gold as a gauge of measurement. The reason gold is going up is because we are pouring another $780B into the economy. The value of the dollar is going to get hit (supply goes up, value goes down). And when the dollar goes down, gold goes up.

I completely agree with the stimulus package and hopefully we will get an infrastructure package as well. There's no reason to have a strong dollar right now, and we have among the strongest. That's the largest ace in the hole that the United States has. Our currency is so damn powerful, and we don't want it to be like that in times like these.

Lower dollar = Better business for exports = stronger economy



And as weird as it is, and as crazy as it sounds, the US is getting extremely powerful during this global recession. We don't have near the problems other nations are having. Go look at Europe's numbers. Look at big bad Russia's. They are getting destroyed. We have hiccups compared to their flu. Think of it as the US gaining more market share. We go down 10%, the rest of the world goes down 25%. It has always been like that and it still hasn't changed, despite what you have been led to believe.

[theanalogkid]

* sigh *

you have much to be learned.

First and most important, is that Rajon is a beast.

Second, inflation is the last thing that will happen to this country right now. Why do you think we are headed for inflation? What makes you come up with this conclusion? Have you seen commodity prices in the last six months? They have crashed. Don't look now, but beware of deflation.

Don't just look at the price of gold as a gauge of measurement. The reason gold is going up is because we are pouring another $780B into the economy. The value of the dollar is going to get hit (supply goes up, value goes down). And when the dollar goes down, gold goes up.

I completely agree with the stimulus package and hopefully we will get an infrastructure package as well. There's no reason to have a strong dollar right now, and we have among the strongest. That's the largest ace in the hole that the United States has. Our currency is so damn powerful, and we don't want it to be like that in times like these.

Lower dollar = Better business for exports = stronger economy

And as weird as it is, and as crazy as it sounds, the US is getting extremely powerful during this global recession. We don't have near the problems other nations are having. Go look at Europe's numbers. Look at big bad Russia's. They are getting destroyed. We have hiccups compared to their flu. Think of it as the US gaining more market share. We go down 10%, the rest of the world goes down 25%. It has always been like that and it still hasn't changed, despite what you have been led to believe.

I don't care about the past because it's meaningless right now. I'm talking about by the end of the year early next year. Banks have been pulling back lending, but when that changes look for rapid inflation to occur. The value of the dollar dropping meaning a rising prices of goods, which means inflation.

A weak dollar isn't great for exports, maybe in the short term, but foreign comapnies can just cut prices to match making it a worthless effort.

Gold is a hedge against inflation, it's clear I'm not the only one thinking about it. The dollar bubble will blow.