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economics

The Federal Reserve

Giving too much power to a central authority is exactly what we were trying to avoid when we instituted democracy!

Our government is in such significant gridlock that they can’t get anything done.

Incrementalism is a part of what makes our government work so well! Moreover, sweeping legislation as been proven to be possible such as the Affordable Care Act.

The government should not head a bank that purchases and owns assets in the free market! It encroaches on communism, when the government owns the means for production.

The Federal Reserve should be able to make asset purchases because it makes liquidity available for firms when there is none available. The end is not for the government to own assets or means of production, but instead to reduce suffering from problems of liquidity in recession, and animal spirits in times of expansion.

The Federal Reserve is printing money! It makes money useless! There will be inflation, rendering my saving worthless! Moreover, my savings are worth less because the savings rate is so low, making me have to put money into the market to get a desirable rate of return, resulting in losses! This is fraud!

We started using fiat currency because it allows us to adjust the money supply with trust in our government being the asset that the fiat currency represents. It allows us more control over savings rates and, obviously, the supply of money. There is too much at stake, and much perverse incentive, in the market for money.

That’s exactly that! How can we possibly leave regulating money to a small group of bankers? One world order!

Standards of living have, on the whole, increased, and although there is no way to know what would have happened if we adhered to the gold standard, evidence suggests that recessions would be much deeper, longer, and more painful. The Federal Reserve is a necessary evil.

The Federal Reserve should helicopter drop money to REAL PEOPLE instead of banks! Giving money to people that spend it will increase economic growth. If it is a one-time drop, inflation expectations will not offset the growth.

That is the job of fiscal policy.

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