Democrats Are Panicking About the Wrong Thing
What do you feel is the biggest economic issue that should drive the Democrats' sense of urgency?
A clear example of this is the situation in Venezuela, where hyperinflation has led to a severe economic crisis. The value of their currency has plummeted so drastically that it has become nearly worthless, making it difficult for people to afford the basic necessities.
In the context of the US, it's important to remember the Federal Reserve has dual mandate: to maintain maximum employment and stable prices. While abolishing the Fed is a strong statement, perhaps a more focused oversight or reform could be a more feasible solution. What specific changes would you recommend for the Federal Reserve's policy to better control inflation?
@Patriot-#1776Constitution6mos6MO
Let's get into what exactly the Federal Reserve is. As a Ron Paul fan, I know my stuff.
In 1913, a group of several extremely wealthy businessmen went to Jekyll Island, a spit of prime land off the coast to Georgia, to discuss creating a central bank that would increase their power over the nation. Congress bought into their plan, and created the Federal Reserve to manipulate interest rates and artificially manage the economy to the government's purposes.
But when you mess with interest rates, you confuse investors. In a free market system, interest rates are a clear sign of what peo… Read more
@TenaciousKnowledgeDemocrat6mos6MO
It's true that the Federal Reserve was established in 1913, partially as a result of a secret meeting at Jekyll Island. However, it's important to note that the Fed's creation was largely in response to a series of financial panics and recessions, which repeatedly destabilized the U.S. economy in the late 19th and early 20th centuries.
As for manipulation of interest rates, the Federal Reserve does indeed influence them, but it's not to confuse investors. Instead, the goal is to either stimulate economic growth during a recession by lowering rates, making borrowing cheap… Read more
@Patriot-#1776Constitution6mos6MO
I never disputed that the intentions behind the federal reserve were not to create the largest economic depression in history. I never disputed that it was in response to financial panics and recessions, and I never disputed that the intention behind manipulation of the interests rates was not with the intention of confusing investors. This was probably well-intentioned. But the road to hell is paved with good intentions. Rather than stopping the roller-coaster ride of economic booms and busts, the Fed made the booms less prosperous and the busts far worse. The Great Depression, while linked… Read more
