THE MAIN QUESTION IS - Why not let the wisdom of the free market set interest rates instead of the FED?
Submitted by Ralph Waldo on Fri, 10/24/2008 - 12:35
The whole idea behind the FED is ludicrous and not based on the fundamentals of free enterprise.
While supply and demand set the prices for all other products and services, the cost of money is based on the opinion of one organization. What gives them the audacity to think they know more than the collective wisdom of the market?
So, the main question IS: Why not let the wisdom of the free market set interest rates instead of the FED?
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digg: Forbes: Fed Reserve Intentionally Causing Economic Crisis
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Please digg it:
Steve_Forbes_to_CNN_Fed_created_global_economic_crisis
http://digg.com/business_finance/Steve_Forbes_to_CNN_Fed_cre...
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Federal Reserve - Intentionally Causing Economic Crisis
http://www.youtube.com/watch?v=GFxZDTAXEhg
Listen to the crEAtuRE
from Jekyll Island.,
Sit down when you have some time and listen carefully to the most cunning scam ever created.
http://www.youtube.com/watch?v=z13TzFBtsWw
"Tyrants fear nothing more than insubordination"
"It's just one big club... and WE ain't in it!"
You're preaching to the
You're preaching to the choir. Obviously it should be set by the market. The reason it isn't is because controlling the money supply let's you control the country, and no one gives up power like that voluntarily.
It's not a matter of reason or explanation. It's a matter of power. Either they're stronger and get to keep it, or we're stronger and are able to wrestle it away from them.
That's all there is to it.
because we're up against...
..this type of thinking.
http://www.huffingtonpost.com/2008/10/24/greenspan-shrugged-...
I commented. Please be sure to be polite yet educate.
Better yet, don't use credit.
There was a reason that "usury" was considered a sin at one time.
grant
Usury has been outlawed many times in history. It is still
unacceptable in most Islamic countries. They use a "charge" rather than compounding interest for loans.
To give you a US perspective of the rapidly changing acceptance of usury, consider the fact that there are people who are still in jail today for loansharking at rates which were lower than some of the current credit card rates+penalties, and much lower than the rates that "check pre-cashing" companies now charge.
And lets not forget about the other ancient biblical money scams that keep resurfacing.
Usury - (excessive Interest) Car loans, house loans, college loans, credit cards, etc
Rapine - (Forceful theft), Income tax, Social security tax, Medicare tax, Mortgage surcharges that go to Acorn group, civil war reparations tax on your phone bill, toll roads that have long be paid for, Stadium taxes, ACLU charges to cities, etc
Coin clipping (shaving metal value off of a coin) The modern equivalent of this is devaluation of dollars through printing more money (government sponsored counterfeiting - called "inflation")
Money changing - (a cost to get/convert your money), ATM charge, Credit card surcharge to seller, Arbitrage, foreign currency exchange cost, check cashing charge, paypal costs, etc
We seem to have to "re-discover the evil" over and over again.
In fact if you have a fractional reserve system
Where reserve rate is floated to whatever the bank wants (to tailor interest rates respectively) and the DEPOSITORS and BANKS assume the risk of bank collapse, then:
1) as people are saving, then there is excess money stored in the accounts and banks have to lower interest rates to encourage borrowing
2) as people overspend or overborrow, then banks have to increase interest rates to discourage borrowing on what they don't have (or in more economic terms, eke out as high rates as possible on something that is in high demand)
This achieves exactly the FED's goal - a negative feedback loop that keeps the economy in a good equilibrium. For those who are against fractional reserve, because the risk is assumed by depositors, it creates a certain amount of flexibility in the economy (through natural, bank-generated inflation and deflation) but not one that is politically controlled, and ultimately defaults are assumed by consumers and the net monetary supply is only governed by the market-driven fractional reserve rate, which over the long term should be static.
If banks also required to disclose interbank lending, it will discourage an overly dense network of institutional risk, and so there will be some cushioning of collapses, but not a "leaning" situation where a the whole system gets taken down.
With their asses on the line, banks will be wiser about who they lend money to (and in a deflationary system, people will be wiser about borrowing money, because amortization becomes dearer as time passes).
We Must End the Fed; nothing else can be solved until we do.
It's Bank of America versus the People III.
Ron Paul's Convention Speech
Ron Paul's Convention Speech
I think you are right.
!
Agreed the free market is best
I have been in business for 35 years. Free markets move around but, they serve themselves.
High demand low supply?
Result in high prices.
This results in a free market response to meet demand and drive down prices.
Low demand high supply?
Low prices.
Businesses adjust or get wiped out.
That is how a free market REGULATES ITSELF.
The gutless collectivists want to control markets with regulation because they claim that free markets are "dangerous" and "out of control."
Without "relatively" free markets of that last 300 years we would be living in mud huts.
It really isn't that complicated.
If you open a steak house in a town that already has 16 steak houses you will either:
Put one of the steak houses out of business.
Create your own market.
Or go out of business yourself.
The customer benefits from this free market activity and always has. The most efficient and well managed farm feeds us the other guy goes to auction.
The senior management of a bank makes a host of poor investment decisions evidencing their incompetence.....they go bankrupt. This is a benefit to the consumer (who should have studied where they were putting their money in the first place) as this incompetent soon to be bankrupt bank gets "taken out" by free market forces. This is a victory not something that needs to be fixed by the government.
A new bank will fill the vacuum in a free market and will hopefully be competent...if not...the market will flow to another bank.
Collectivist cowards introduce complexity to this basic 6th grade concept.
The kid with the good lemonade at the right price in the right location will sell more lemonade. The kid who gets his parent to assist him with management will beat out the kid who spends all his profits on candy.
Like I said the free market is one of the more basic concepts there is.
The stock market is within a supposed free market of potential investments you can make which include bank CD's bonds...your bother in laws' stupid business idea...etc., but, it is a casino controlled by interests who have little or no interest in investors. It is represented as old and trusted when it is not. If you understand what a share of stock is you would not invest very much money in the stock market....which is part of the free market system. You are not required to invest in the stock market.....thank God.
So when you hear someone say "Keynesian" immediately run away screaming. The study of economics is just complicated. It is designed to frighten people away with it's complexity. When someone drags it out? Leave.
An understanding of free markets is not complicated.
The gas stations in your town are an example of free markets. Mobil drops their price three cents to steal Shell customers....Shell reacts and we all benefit.
If Shell does not react and leaves their price at $4.09 a gallon what happens?
They lose so much volume they go out of business...yay! Bad business operator dies a proper death! Good for consumer. You don't need a PHD in economics to grasp this...ok? You don't need to go to freaking Austria for 9 years to get the Mobil station Shell station thing do ya?
Obama and McCain would rescue the poor little gas station by taking your tax money and giving it to the poor little gas station. (Stalin tried this and all the Russians starved....they had to wait in line for 14 hours to buy one pair of poorly made shoes)
That is why we support Dr. Paul. He believes that regulation HURTS YOU AND ME. He does not believe that regulation helps you and me and it has been proven again and again.
The current crisis is orchestrated to achieve ends set by those in control. It has nothing to do with anything except this.
TO CONVINCE YOU THAT FREE MARKETS ARE "BAD" AND "DANGEROUS" AND "NEED TO BE CONTROLLED."
You are being controlled with fear just as they have been doing for the last 100 years. Stop believing these people...then they will go away...get put of business...just like in a free market.
Have a nice day.
Unify
Wisdom of the 'free market'?
Amusing.
What wisdom? Have you noticed who Americans like to put in office in our lifetimes?
And what free market? I see no such animal in existence.
To play along with the game, 'free' implies no control. That's not favorable to people with ambitious agendas. Control is the key to power; always has been, always will be.
There still remains some freedom in the market place.
When you consider buying something you can:
1. Buy it for the price the seller is asking for
2. Negotiate for a better price
3. Choose not to buy it
This is where people start
This is where people start to debate over conspiracy theories. There are those who believe that these people/institutions are well-meaning but ignorant, and then there are those who believe these people have evil agendas and knowingly create these conditions to further that agenda.
Personally I believe that these situations are engineered. People as smart as Ben Bernanke can't actually believe that the Fed's policies are actually beneficial for our country as a whole. I just don't buy that. I don't buy the idea that all of the smart men and women high up in government (and yes I do believe they are smart) could really believe that devaluing a currency and forcing bad loans could actually be beneficial. Look at history. Governments have done this sort of thing before in order to further an oppressive agenda. History forgotten is history repeated.
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Follow the money
Who benefits from the devaluation of the American Dollar? Hmm...not me and you, that's for certain. The global bankers and international corporations of course. How would president Bush personally benefit from it? CAFTA. We can kiss our sovereignty and any free market goodbye as we know it. Once that passes and the economic system crumbles, hello Amero.
In 1921
Congressman Lindberg stated:
"Under the Federal Reserve, panics are scientifically created. Worked out as we figure a mathematical equation."
These guys have been working this scam since the late 1600s and nobody could ever convince me that they are not financial illuminaries.
The problem now is that we can't be sure of what they're up to, and that leads to many speculations which sound kooky to most people.
"But what's puzzlin you is just the, nature of my game"
Rolling Stones
"Tyrants fear nothing more than insubordination"
"It's just one big club... and WE ain't in it!"
Illumuniti
They go by many names and play many games. Rest assured, whatever they have planned for us is not going to be a picnic for us. I think of it kind of like if the cool kids in high school could rule the world instead of their small building, they would just have fun torturing everyone that did not run in their pack and got in their way. Well my friend, the world has gotten a lot smaller over the past 30 years and their foot print keeps getting larger and they don't need us to run in their pack anymore so we're dead weight. It's not about money, it's about power and control.
Master of puppets Im pulling your strings
Twisting your mind and smashing your dreams
Blinded by me, you cant see a thing
Just call my name, `cause Ill hear you scream
As the beloved George Carlin said -
“But I’ll tell you what they don’t want, They don’t want a population of citizens capable of critical thinking. They don’t want well-informed, well-educated people capable of critical thinking. They’re not interested in that. That doesn’t help them. That’s against their interests. They don’t want people who are smart enough to sit around the kitchen table and figure out how badly they’re getting fucked by a system that threw them overboard 30 fucking years ago. You know what they want? Obedient workers – people who are just smart enough to run the machines and do the paperwork but just dumb enough to passively accept all these increasingly shittier jobs with the lower pay, the longer hours, reduced benefits, the end of overtime and the vanishing pension that disappears the minute you go to collect it. And, now, they’re coming for your Social Security. They want your fucking retirement money. They want it back, so they can give it to their criminal friends on Wall Street. And you know something? They’ll get it. They’ll get it all, sooner or later, because they own this fucking place. It’s a big club, and you ain’t in it. You and I are not in the big club.”
Carlin
"... and incidentally it's the same club they use to beat you over the head with when you get outta line!"
"Tyrants fear nothing more than insubordination"
"It's just one big club... and WE ain't in it!"
I agree. As RP has said, they lower interest rates to an
artificial level to stimulate an artificial amount of economic activity, and then - they tighten the money supply by intentionally raising interest rates.
This two step approach is what creates the boom/bust cycles. Then in the bust phase, when assets such as banks go bust, they swoop in and buy them up at fire sale prices.
They did this in the 1930's and they are doing it again today. Have you noticed how the bigger banks are taking over the smaller banks - not coincidence.
Manipulated consolidation creates more power and wealth in the hands of the elite at the top while the average citizens get higher taxes and inflation. No doubt, this process will continue until enough people figure it out.
Cheap money leads to bad judgement.
"Lead, follow, or get out of the way."
-- Thomas Paine
A Republic, If You Can Keep It
You said it (and quite well)
Libera me, let the truth break, what my fears make--Leslie Phillips
But that man should play the tyrant over God, and find Him a better man than himself, is astonishing drama indeed!~~D. Sayers
There is no difference between an authoritarian government from the right or the left...F. A.Schaeffer