Monday, May 04, 2015

The Federal Reserve: Good, Bad, or Just Plain Stupid?

A video request that proved to be a good historical and economic lesson of the Federal Reserve and central banking in general:


Anonymous said...

You made one mistake - Alan Rickman's best role was the bad guy in "Quigley Down Under", a great Western!

sth_txs said...

The Federal Reserve needs to be abolished. There is plenty of literature and historical research at the Mises institute that have studied the gold standard and acknowledge that nothing is perfect but even this system is only worse when the government passes laws beyond contract protection trying to fix it.

I don't have any faith in the FDIC saving us from bank runs. It all it does is facilitate the transfer of those deposits to a stronger bank, so I don't see how they improved the old system. Also, I don't see any evidence that the Fed knows what the hell it is doing. It has always created inflation and has always been detrimental to the economic health of the country.

One brave citizen and true patriot tried to create real money, but screwed over by the feds and and a not too bright jury.

'Reality' Doug said...

Cappy, you sound like an establishment apologist of the Monetarist persuasion from as much as I could take. I find that somewhat surprising, though you have always been reticent on the Fed. Your logic is sound, but I don't think your philosophy is. I will try to explain that, but maybe Aurini can better critique your philosophical basis.

The assumption that failure is bad is ridiculous. Does the average humanoid learn the easy way? Does the pleasure principle fail without some real world crisis for the individual? Does evolution of culture or underlying DNA work on a lack of natural selection? There is a selection process right now, favoring the expansion of the most indigent and corrupt and pathetic of things that do not properly qualify as human. Protection that makes people dangerously soft is what destroys all leading civilizations.

Investment risk should remain with the actual investors. If affluence is beyond reach, it should be beyond grasp by accurate individual accountability, which requires sound money not fiat money. Credit is not sound money. Credit is investment, good or bad. If credit is government guaranteed, it is only disguised taxation stream. Moreover, government can never fail in shaping social policy, economic policy, political policy if it has endless money to play with and an economy of people willing to sell and thus sell out for it. We are providing the means of our own enslavement. Once the establishment owns the definition of money, money is nothing and power is everything. The establishment has my power and yours.

Banking service should be limited to storage and transfer on a pay as you go basis. The sheeple think out of sight out of mind, but the limitless abstractions kill.

To any concerned, my take on economics is given by "Save a Life From Human Domestication in 30 Minutes." Note the version number in the URL may change in the future. There is one minor formating error, and maybe I will update it one day.

Robert What? said...

I'm going into this believing that the primary purpose of the Fed is to enrich its members and cronies at taxpayer expense. Let's see if it holds water. Catch you on the flip side.

Anonymous said...

Bakken drilling is the same as the Housing bubble. They never made any money selling Oil. The business model is to drill wall street for profits.