OohPooPahDoo
Gold Member
- May 11, 2011
- 15,347
- 985
- Thread starter
- #21
We need not have a central bank at all.
And have what instead?
That's actually exactly what they do.
That's actually not true. The price of goods was quite volatile at some times.
Consumer Price Index (Estimate) 1800-2008 | The Federal Reserve Bank of Minneapolis
1802 -14%
1813 +13%
1815 -13%
1823 -10%
1862 +11%
1863 +23%
1864 +27%
That's not true either. There was deflation in 1921, 1922, 1927, 1928, and there was no inflation in 1924, 1929, 1930, 1931, 1932, 1933, 1938, 1939, 1949, 1955, and 2009.
Historical Inflation Rates: 1914-2011, Annual and Monthly Tables - US Inflation Calculator
get your facts straight.
I wasn't around in 1913. I doubt you were either. I don't think you know how money works.What cost a few hundred dollars in 1913 now costs thousands. That's YOUR money the Fed as stolen. Personally, I'm pissed about that.
The country, and others, have existed just fine with NO central bank. No substitute is necessary.
Yeah, but what would supply the money in its place? Decentralized nationally chartered banking? Free banking?
You are dead wrong about how politicians raise money. Sure they sell T bills (debt) and levy taxes but when they need money they can't get through either of those means, their buddies at the Fed create it out of thin air for them. This devalues the dollar and causes even more inflation.
They do not. Any money they spend not from revenues has to be raised through debt issue. The Fed buys some of it but they hold barely more than 10% of outstanding U.S. Treasuries.
Your point was actually:Prices are SUPPOSED to be volatile. That's what happens when supply and demand determine prices. That's my point and that's a good thing.
which is kinda the opposite of what you just said.For the first 100 or so years of our country, the average price of goods was pretty much unchanged - some inflated, some deflated, all according to supply and demand.
Actually:That fact remains that what cost $100 in early 1800s cost about the same by the end of the century.
The Inflation CalculatorWhat cost $100 in 1800 would cost $48.94 in 1900.
So, wrong again.
Thanks! I'll keep that in mind next time I go to spend money that I saved in 1913! I can tell you're the practical sort.That is certainly NOT the case for the 20th century. Of course there were years of little to no inflation but overall, the Fed caused huge amounts of inflation that a free market certainly would not have. Again, what cost $100 in 1913 sure as HELL doesn't cost about that today. That is the Fed's fault.
You clearly do not know how money works pal. If you really want to make the case for a centrally planned price of money, why not milk? How about toilet paper? Hell, let's have the government set the price of everything. Why not?
I'm waiting to hear where the money comes from after we abolish the fed.