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Old Oct 11, 2007, 3:24am   #18
TWLLM
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LOL at returning to gold standard (I know that's not Ron Paul's idea per se, but I've heard it touted by many as a solution to credit problems). Granted, if your federal reserve is as messed at it sounds, that's not a good thing, but returning to pre-Keynesian economics isn't a good idea either.

Btw, how 'independent' is your federal bank? That Zeitgeist movie suggested it was as independent as any other bank, but I call bs on that.

I thought that your central bank was like the bank of Canada, not 'run' by the government (we don't have legislators setting interest rates b/c that would be ridiculous) but not independent by any means - the chairman is appointed by the federal gov't, right? And it doesn't 'own' the US currency per se, it is just a repository which loans money to the government and others, and of course the loan is at the prime rate of interest. This is the same thing that the central bank does for every individual bank that needs an overnight loan etc.

The way some people spin this (eg. the Zeitgeist folks), make it sound like the federal reserve is a totally independent bank that owns all US currency in circulation and can print it at will w/o approval of anyone appointed by the government (ie. the chair) and without reason. And yes, inflation is like a 'tax' on holding money (trust me, that's not a new idea by any means), but at the same time, you remove the ability to print money beyond maintaining circulation amount, and you remove the ability of governments to run deficit spending except at much higher interest rates, not to mention a slew of other negative consequences. I'm not an economist by any means, but the 'sinister' notion of a central bank is just ridiculous, as is the suggestion that returning to the gold standard would be a good idea. A credit economy, run properly and operated within by reasonable people is WAY better than this pseudo-mercantilist bull being touted as saviour.
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Quote:
Originally Posted by DoubleU
Oh, and obviously, TWLLM, we'd all rather you just ruled with an iron fist of nittiness and made all decisions without consultation, but that goes without saying, right?

Last edited by TWLLM; Oct 11, 2007 at 3:27am.
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