Posted on 11/14/2016 9:51:10 AM PST by Olog-hai
None of those were “carefully excluded from the constitution.”
Mendacity will get you nowhere. Please re-read the Constitution.
We had a period in our history after Jackson refused to re-charter the Second National Bank where not only was there economic collapse but a decade long depression. Only the discovery of gold in California and the subsequent inflation of the money supply put that unnecessary episode.
Wildcat banks popped up all over the land and, being unregulated by the fedgov or state governments undercapitalized or uncapitalized at all they failed with great irregularly effectively stealing their depositors money. Many were connected to powerful regional political figures.
Not having a National Bank greatly complicated Lincoln’s attempts to pay for the Civil wars and certainly did not stop wide swings in the value and quantity of money or panics.
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The Fed is not a national bank; it is a private corporation owned by European subjects.
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arrogantsob has no grasp of these things.
He was sent here for a purpose.
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>> “A central bank is not a Marxist invention any more than the Division of Labor is.” <<
Correct, and they both definitely are Marxist.
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Not true.
Could you contact the Fed and have my check speeded up, it has been late of late?
What’s wrong with deflation? lower prices for things are GOOD for consumers and average citizens, are they not? There certainly has been massive deflation in computers and cellular goods over the last 30 years. Have you benefited from that? Have Apple or Microsoft crashed and burned over that period?
It was the period of highest growth, bar far, in US economic history.
Inflation benefits debtors (hint - the US Government). It hurts anyone who earns a wage or saves money.
Up until the 1930’s, bank shareholders were subject to double liability. If they crashed their bank, they lost their investment - and were also subject to pay back creditors and depositors up to “par value” as determined by State regulators. and YES, such judgements happened all the time against bank shareholders.
In the Federal Reserve system now, member banks use 0% money to speculate at will. When they crash the system (2008) Uncle Sam bails them out, and Ben Bernanke helps repair their balance sheets.
To say that banks are safer or better regulated now is just NOT true.
Deflation per se is not a problem if it happens slowly enough and the value of the currency is not debased, FWICS. I think too many people think of the “deflationary spiral” that Japan went through, which they applied socialistic “solutions” to as if it were hyperinflation.
Pay close attention to the Tenth Amendment, in particular. That is an illustration of careful exclusion.
Deflation is bad for those who have debt. Its disastrous for those who have too much debt. That is all you need to say.
Now, who had too much debt in 1929? Or in Japan in 1990? Or in the USA in 2008?
What perverse policies or special access allowed them to access so much debt?
Exactly right.
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What, the queen is not honoring her obligations?
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arrogantsob does not hold our constitution in high esteem.
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Little do you know. A fantasy constitution is not of interest to me, the actual document is semi-divine.
It is owned by the member banks and controlled by the federal government appointees.
Are there member banks owned by foreigners? Probably, are there European banks owned by Americans, probably.
Basically the question is - Should the money supply be controlled by a federal institution like the Fed or should it be controlled by Wall Street and the big banks?
There really isn’t another alternative.
Deflation is not prices being lowered on some things but an across the board lowering of prices. If your home price dropped by a third would you like that?
Deflation and inflation are not a problem - the problem is UNANTICIPATED deflation or inflation. If the inflation rate is known it can be incorporated in economic calculations.
The Great Depression is an example of deflation on a massive scale as prices and wages collapsed across the board.
You are also confusing price reductions due to increased productivity or technological improvements. It is these things which drive prices within specific sectors.
Both Deflation and Inflation are monetary phenomenon. When the money supply grows too slowly deflation results. When the money supply grows too fast inflation results.
The 30s were a watershed and marked the end of the mechanisms prevalent in banking. It called into question essentially the Neo-Classical economic theory then in power.
But the real problem may have been in incorrect estimates of the monetary aggregates - at least that is what Friedman believed happened.
Inflation benefits debtors only when the interest on the loan is incorrectly calculated. Since it had not been a problem in the US for almost 40 yrs, the interest rates were established at too low a level. I= i + r + p where I is the nominal interest rate, i is the real interest rate, r is the expected inflation rate and p is the risk premium.
Since inflation became more obvious r has been much higher than before so the borrower does not really make out on the interest rate arbitrage. As to government benefit - now the g sells inflation indexed bonds as well as the standard so you can match wits in inflation prediction.
As regards this article we can see the quandary the central banks are in. Even after massive increases in the money supplies across the world, there are small increases in economic activity. Keynes proposed the theory of a “Liquidity Trap” to explain the failure of monetary theory.
Where is that money going?
The 30s were a watershed and marked the end of the mechanisms prevalent in banking. It called into question essentially the Neo-Classical economic theory then in power.
But the real problem may have been in incorrect estimates of the monetary aggregates - at least that is what Friedman believed happened.
Inflation benefits debtors only when the interest on the loan is incorrectly calculated. Since it had not been a problem in the US for almost 40 yrs, the interest rates were established at too low a level. I= i + r + p where I is the nominal interest rate, i is the real interest rate, r is the expected inflation rate and p is the risk premium.
Since inflation became more obvious r has been much higher than before so the borrower does not really make out on the interest rate arbitrage. As to government benefit - now the g sells inflation indexed bonds as well as the standard so you can match wits in inflation prediction.
As regards this article we can see the quandary the central banks are in. Even after massive increases in the money supplies across the world, there are small increases in economic activity. Keynes proposed the theory of a “Liquidity Trap” to explain the failure of monetary theory.
Where is that money going?
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