The Fed

[g5000]

Bubbles are created. When times are good people acquire wealth. Then the bubble pops and the rich buy all that wealth for pennies on the dollar.

The rich lose the most during stock market crashes.

 

[GMCGeneral]

Inflation will always be with us. We’re the strongest economy in the world and the ups and downs have been less severe. Debt will also always be a thing. The answer is growth, technology and education, not going back to the 19th century.

America did far better economically in the 19th Century, dumbass.

 

[g5000]

Ok, but explain why we need the fed to do that? Why can’t the government do the same thing as what the fed is doing ?

Exactly what would the government do if there was a run on a bank?

The Federal Reserve exists as a backstop for banks.

You know who the backstop was during the 1907 panic?

JP Morgan. A private individual.

The government never performed the job the Federal Reserve does.

 

[Lesh]

In fact inflation is what makes the national debt less of a factor.

We borrowed 100 million to finance WWII.

We still carry that debt and it basically doesn’t matter. It WAS at the time… 100% of GDP

 

[Lesh]

America did far better economically in the 19th Century, dumbass.

The rich did real well. They called it the Gilded Age

 

[g5000]

whats better is to let the economy run its natural course instead of trying to control it,,

as you said those little depressions didnt effect the everyday people at all and had little effect on the ones it did,,

Well, we've been kicking the can of pain down the road for so long, that pain has now grown to the point where has become an immovable object. The day is coming when the pain can no longer be avoided, and we are all fucked.

That's not the Fed's fault. That's OUR fault.

 

[g5000]

We would have zero debt of we produced our own money, like our constitution says, instead of borrowing it.

My god, the stupidity of this statement!

 

[g5000]

He ain't completely wrong. And he's definitely not a moron. But if it wasn't for all our big spending politicians, we wouldn't be so deep in debt. And if the Fed would tell the government, "Look, we'll loan you the money to keep the country going, but ONLY the necessities." You know, some sort of road block on the spending (since us Americans don't seem to care that we're constantly electing big spenders)

The government would then borrow the money from China and other countries, like it already does.

The Fed only owns about $5 trillion of our debt.

 

[g5000]

he OKed the bill,, not created it,, its on him just not 100%

Trump proposes record-high $4.7 trillion budget​

Trump says he wants a bigger stimulus package than the $2.2 trillion amount that Democrats are seeking

 

[g5000]

There's not a whole lot of decline in the money supply.

Exactly. Because the federal government keeps borrowing more and more.

And because the Fed increased their balance sheet by $7 trillion between 2008 and the present.

That's why we have inflation today. All that cash and the pent up demand which grew during the pandemic unleashed inflation when the pandemic ended.

 

[konradv]

America did far better economically in the 19th Century, dumbass.

Who did? A very narrow slice, that’s not America. Real expansion didn’t happen until the 20th century, the Progressive Era and a Republican president like they used to be, TR!

 

[g5000]

America did far better economically in the 19th Century, dumbass.

The hell it did. There was huge wealth inequality and crash after crash after crash every two years or so.

 

[konradv]

Not if we put the dollar back on the Gold Standard, roll the Federal Government back to its Constitutional mandates and KEEP IT THERE!!!, and make them live within its means. But you collectivist dumbasses don't like that.

Sorry, not going back to the bad old days.

 

[g5000]

the other persons comment about that was based on depressions back before the fed,,

thats why we never hear about them because they only effect big money people and had little to no effect on the average person,,

The average person was already broke. They were forced to live in company houses and buy their groceries at the company store. They were about as close to slaves as it gets.

During the repeated crashes of the period, millions were thrown out of work.

I don't know where the idea that the little people were not affected by these crashes came from. It simply isn't true.

 

[g5000]

Lol. Do you not know how long the Great Depression lasted and how it negatively effected nearly every American?

The Great Depression lasted half as long as the Long Depression.

Lol.

 

[g5000]

we dont demand more from governemnt,, thats you wanting that

most of us want them to leave us alone and not do stuff for us

Do you take deductions, credits, and exemptions on your taxes?

Every dollar you declare for your deductions, credits, and exemptions has to come from someone else's pocket in the form of higher tax rates on everyone and by borrowing.

Those tax expenditures add up to about $1.4 trillion EVERY YEAR the government has to find elsewhere. From your fellow taxpayers or from borrowing.

You are as much a welfare queen as everyone else.

 

[progressive hunter]

Well, we've been kicking the can of pain down the road for so long, that pain has now grown to the point where has become an immovable object. The day is coming when the pain can no longer be avoided, and we are all fucked.

That's not the Fed's fault. That's OUR fault.

not my fault,, dont put your guilt on me,,

 

[P F Tinmore]

Without all that wonderful lending, a much smaller fraction of Americans would own houses. Businesses would not be able to get money for startups or to expand. Our economy would be a tiny fraction of what it is today.

And what the gold bugs never tell you is that when the principal is repaid, it is destroyed and becomes nothing again.

And what the gold bugs never tell you is that when the principal is repaid, it is destroyed and becomes nothing again.

It is impossible to be repaid. That is the money in our wallets and bank accounts.

 

[progressive hunter]

Do you take deductions, credits, and exemptions on your taxes?

Every dollar you declare for your deductions, credits, and exemptions has to come from someone else's pocket in the form of higher tax rates on everyone and by borrowing.

Those tax expenditures add up to about $1.4 trillion EVERY YEAR the government has to find elsewhere. From your fellow taxpayers or from borrowing.

You are as much a welfare queen as everyone else.

my ass it comes from somone elses pocket,,

its more of my money I get to keep,,,

 

[progressive hunter]

You never heard of them because you are ignorant.

you do know everytime to try and insult me or anyone else is just proof you know we are right and youre a fucking idiot dont you??