Question for those who know finance

[Scipio]

they absolutely rise and lower their interest rates. as an example we've lowered our discount rate to basically zero, the euro union is somewhere around 1.5%. another example of us being more agressive.

Does each nation have the power to drop their Euro, or do they vote, or what? If they don't have authority over their own nation's currency, that's doesnt seem like a bright move on their part.

they see the fed as raping our childrens future because of their ability to print money with no repercusions.

In other words they think we eventually wont be able to do so and default or have a 90% tax rate?

 

[droski]

Does each nation have the power to drop their Euro, or do they vote, or what? If they don't have authority over their own nation's currency, that's doesnt seem like a bright move on their part.



In other words they think we eventually wont be able to do so and default or have a 90% tax rate?

no the members of the euro union have one central bank.

no they think that inflation will go absolutely nuts and send us into poverty a la mexico, brazil, or russia in the past 50 years. imagine if you have $50k in the bank today and a year later $50k now buys you a six pack and a couple of loto tickets.

 

[gsvol]

gsvol in 5. . .4. . .3. . .2. . .1

upside none.

downside next time the **** hits the fan we won't be able to do anything about it except obamamonics.

You make some of the dumbest posts I've ever read on any message board.

Would you like to elaborate on your last idiotic post??

 

[Scipio]

no the members of the euro union have one central bank.

no they think that inflation will go absolutely nuts and send us into poverty a la mexico, brazil, or russia in the past 50 years. imagine if you have $50k in the bank today and a year later $50k now buys you a six pack and a couple of loto tickets.

i have no idea who youre talking about or id look it up, but why do they think we are headed towards hyperinflation? As you said, our inflation is the lowest it's been in 60 years.

 

[tigervol9802]

I love the people who come on asking a simple nieve question then suddenly have a ton of facts to throw out.....

 

[Scipio]

I love the people who come on asking a simple nieve question then suddenly have a ton of facts to throw out.....

assume youre talking about me, so Ill say I have no idea what "facts" ive thrown out. Last post I said inflations the lowest its been in 60 years because Droski said so earlier in the thread. im just a college student who wants to understand the economy better. if you're spelling is any indicator of your credibility, i probably shouldn't mind your call-out, anyway.

 

[Ed12111]

why? If the world places relative value on the pieces of paper, then their value is no more arbitrary than the imagined value of a hunk of metal.

You're arguing for a fixed money supply, which is great in theory, but removes another tool from the economy management toolbox that we have to try and temper economic growth curves.

+1.

 

[tigervol9802]

assume youre talking about me, so Ill say I have no idea what "facts" ive thrown out. Last post I said inflations the lowest its been in 60 years because Droski said so earlier in the thread. im just a college student who wants to understand the economy better. if you're spelling is any indicator of your credibility, i probably shouldn't mind your call-out, anyway.

Cute.

 

[droski]

i have no idea who youre talking about or id look it up, but why do they think we are headed towards hyperinflation? As you said, our inflation is the lowest it's been in 60 years.

it's happened before in other countries. generally it took a colapse of the economy or a war though. it is true you can't do this forever without serious consequences, but i think we're still a ways away from that.

 

[gsvol]

Ron Paul has said we should go back to the gold standard. The free banking era we went through had a lot of panics, but the depression and latest recession have been under the watch of the fed.

What is the upside of going back to the gold standard and abolishing the fed?

What is the downside?

thanks for any info.

There is some info in other threads on this page.

One thread is "federal reserve to buy $600 billion more Treasury Bonds."

I don't know if Ron Paul has all the answers but he has some very interesting questions, number one, why has the fed never been audited and when are we going to get around to doing that??

Ask yourself this, why is the most prosperous nation in the history of the world also the greatest debtor nation in the history of the world??

The simple answer is that we have allowed a privately owned and operated central banks (60% of which is owned by Europeans and others) to control money supply and credit in our country which fought a war for independence over the cause that we wanted the right to issue our own currency and which is written into our Constitution.

It is true that we passed the Federal Reserve Act authorizing private bankers control of our currency in order to create a stable system in which panics would supposedly never occur again but those bankers who gained such control were also the ones who created the panics on purpose and in the end they did not deliver on their promise and if you recall we had the greatest panic in American history only 16 years after passing the fed res act.

Although they now claim this was an honest mistake on their part one can lay our current financial problems once again right at the door of the central bankers and their policies.

Furthermore their solutions to our financial problems ends up to be a bankruptcy of our nation, indebting us so heavily that there can no hope of paying our debt.

I have been preaching this since the 1960s, what has been devised and implemented is a sophisticated monetary slavery system with our nation as the slave.

 

[gsvol]

so, we have pieces of paper that are printed at random- backed by nothing. Doesn't that just sound bad and like a disaster?

Short answer, YES!

why? If the world places relative value on the pieces of paper, then their value is no more arbitrary than the imagined value of a hunk of metal.

Theoretically you have a point but in reality paper currency with no backing other than perceived taxpayer willingness to pay back said currency deficits is of no value at all.

Why would US Treasury Notes not be of the same value as federal resere notes??

Both are based on the same perceived ability to pay and now the ability to pay by the American people is coming into question.

You're arguing for a fixed money supply, which is great in theory, but removes another tool from the economy management toolbox that we have to try and temper economic growth curves.

Then why would federal reserve notes be of more value than US treaury bonds??

But who governs that toolbox, the people of America or an international group of financiers over which the people of America have no control?

going back to the gold standard would also futher inflate the gold price. not even sure how we'd buy taht much gold without printing a bunch of money anyway.

You aren't to sure of anything are you?

A lot of Europe uses the same currency, so they couldn't manipulate their interest rates by themselves, even if they wanted to, correct?

The Fed is the central bank of the USA. We manipulate our interest rates in recessions and booms to minimize and maximize the economic effect. That sounds good, so I have no idea why Ron Paul and others want to eliminate the Fed. Maybe it has to do with the gold standard, because I'm still lost on that. Why should we even worry about debt and taxes if the fed can just print more money?

The reason to end the fed is to put the control of money back into the hands of the people instead of letting a few elitists have such control.

ever heard of the Weimar Republic? Seen a picture of a Zimbabwean trillion dollar bill?

So now you are making rational posts on the topic instead of irrational rants against me??

Will wonders never cease?

 

[gsvol]

assume youre talking about me, so Ill say I have no idea what "facts" ive thrown out. Last post I said inflations the lowest its been in 60 years because Droski said so earlier in the thread. im just a college student who wants to understand the economy better. if you're spelling is any indicator of your credibility, i probably shouldn't mind your call-out, anyway.

When I was a college student at UT in the 1960s I used to drive the economy professors crazy asking them about how new money is introduced into the economy.

I don't think any of them had the slightest clue about how the federal reserve system works.

Later on in the '70s I inquired from a man in a position to know about me buying one stock in the federal reserve, he replied that that that stock was all sold out in 1914 and I said since he knew people who owned that stock maybe someone would be willing to sell one share and got a laugh but he said he would enquire.

Botton line, Droski is a moron, over and over again he has demonstated he doesn't know sh!t from sh!nola about most anything although he will tell you he is the closest thing to the ultimate authority on nearly every subject. Perhaps this is why he continually posts here rather than on his own message board like lawgator.

 

[gsvol]

the government is a part of the economy and makes all the laws / rules governing our economy. Our dollars are drawn on our treasury. How do we remove the government from our financial system? You want to kill the FDIC / SIPC? Our government is interwoven into our entire financial system, top to bottom. You mentioned our economic environment being conducive to entrepreneurialism and it is, but much of that is government involvement and oversight. Our bankruptcy laws and risk capital system make this the best place ever to invest. Others are copying it because it works.

What is being discussed by Ron Paul is removing private interests from the monetary system, not removing government from the monetary system.

Your post demonstrates that you don't understand what over 99.99% of the American public doesn't understand.

Federal reserve notes are NOT issued by the US government!!!!!!!!!

 

[gsvol]

it's happened before in other countries. generally it took a colapse of the economy or a war though. it is true you can't do this forever without serious consequences, but i think we're still a ways away from that.

How far away???

Should we plot a different course??

 

[gsvol]

why? If the world places relative value on the pieces of paper, then their value is no more arbitrary than the imagined value of a hunk of metal.

You're arguing for a fixed money supply, which is great in theory, but removes another tool from the economy management toolbox that we have to try and temper economic growth curves.

But WE don't have that tool, international financiers have that control.

Not everyone understands that, on the contrary most people think the federal reserve banking system is controled by the US government but that just isn't so, it is a privately owned corporation.

Now I ask you why can't our government circulate it's own currency as the Constitution stipulates instead of selling treasury bonds to central bankers who create their money out of thin air and then we have to pay it back with interest insuring that we the American people will always be indebted to those private interests, many of which aren't even citizens of the USA?

After all if a US Treasury Note is worth face value, why would not a dollar bill produced by 'we the people' not also be worth face value?

 

[MG1968]

When I was a college student at UT in the 1960s I used to drive the economy professors crazy asking them about how new money is introduced into the economy.

I don't think any of them had the slightest clue about how the federal reserve system works.

Later on in the '70s I inquired from a man in a position to know about me buying one stock in the federal reserve, he replied that that that stock was all sold out in 1914 and I said since he knew people who owned that stock maybe someone would be willing to sell one share and got a laugh but he said he would enquire.

Botton line, Droski is a moron, over and over again he has demonstated he doesn't know sh!t from sh!nola about most anything although he will tell you he is the closest thing to the ultimate authority on nearly every subject. Perhaps this is why he continually posts here rather than on his own message board like lawgator.

Thank you for proving me right

although I think my assessment gave you too much credit.

 

[droski]

"When I was a college student at UT in the 1960s I used to drive the economy professors crazy asking them about how new money is introduced into the economy.

I don't think any of them had the slightest clue about how the federal reserve system works."

This is hilarious, but not for the reason he thinks it is.

 

[gsvol]

"When I was a college student at UT in the 1960s I used to drive the economy professors crazy asking them about how new money is introduced into the economy.

I don't think any of them had the slightest clue about how the federal reserve system works."

This is hilarious, but not for the reason he thinks it is.

That's funny, wake me up when gold gets to $500 an ounce.

OTOH Monsanto stock could be a good investment, as you say, especially if they can get monopoly control of food supplies and the federal reserve banks owned by international financiers have the monopoly on money supply.

Recently you opined that you didn't know if California could default on it's debt, well the thing about that is since Obama has been in office, the federal government has been making interest free loans to the state of California.

From the LA Times:

California's unemployment insurance fund became insolvent nearly two years ago, and federal interest-free loans to shore it up — and to allow the state to keep paying laid-off workers without hiking the cost to businesses — are due to run out at the end of the year.

The problem is basic: With unemployment at 12%, the fund is paying out far more to unemployed workers than it is taking in from employers, who fund the program through unemployment taxes. The shortfall, projected to reach $20 billion by the end of 2011, is now so large that economic recovery alone will be insufficient to set the fund on a sustainable track.

And that doesn't even take into account the unfunded trillions will be owing to state retirees in the near future.

What's the odds of California ever paying back these loans??

 

[gsvol]

Thank you for proving me right

although I think my assessment gave you too much credit.

Read between the lines............

"We are absolutely without a permanent money system.... It is the most important subject intelligent persons can investigate and reflect upon.

It is so important that our present civilization may collapse unless it becomes widely understood and the defects remedied very soon."
— Robert H. Hamphill, Atlanta Federal Reserve Bank

Guess that automaticly rules you out, huh?????

 

[MG1968]

Obama has proven that well-educated and intelligent can be mutually exclusive terms.

 

[gsvol]

"By this means (central banking monetary supply and frational lending) a government may secretly and unobserved, confiscate the wealth of the people,
and not one man in a million will detect the theft." — John Maynard Keynes -- "THE ECONOMIC CONSEQUENCES OF THE PEACE" (1920).

Obama has proven that well-educated and intelligent can be mutually exclusive terms.

And you have proven you can make a thorough ass of yourself.

Woodrow Wilson The Princeton professor who was considered one of our most educated presidents and who was repsonsible for pushing though the federal reserve on the advice of his financial advisor, House, who was a British citizen, later said about what he had done:

"A great industrial nation is controlled by it's system of credit. Our system of credit is concentrated in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the world--no longer a government of free opinion, no longer a government by conviction and vote of the majority, but a government by the opinion and duress of small groups of dominant men."

 

[IPorange]

"When I was a college student at UT in the 1960s I used to drive the economy professors crazy asking them about how new money is introduced into the economy.

I don't think any of them had the slightest clue about how the federal reserve system works."

This is hilarious, but not for the reason he thinks it is.

Is it because in the 1960's, we were still tied to a gold standard?

 

[gsvol]

Is it because in the 1960's, we were still tied to a gold standard?

Short answer; NO.

Although drooski may have his own narative, the real problem dates back to 1913.

 

[NEO]

yes but the valleys will be much greater. as far as i'm concerned the fed's ability to manipulate interest rates and do it well is one of the primary reasons we still ahve teh #1 economy in the world. i know others disagree.

The problem is it is no longer a plus to have the strongest dollar. The way global trade is anymore you need a weaker dollar. Back when products were being made here a strong usa dollar bought cheaper goods and alot us to create goods at a lower price. But now that it is so easy to goods made in China the strength of our dollar hurts us.

It does not matter what we do if China does not start declaring their dollar at fair market value. As long as they are pegged to us and we are pegged to oil they will be able to create goods at a lower price and manufacturing jobs will not have a strong presence here.

 

[droski]

ok. even though i disagree about manufacturing jobs being important economic easing hurts the value of the dollar so i'm not seeing your point.