What was the point of the federal reserve? | TigerDroppings.com

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Codythetiger
LSU Fan
Member since Nov 2006
16794 posts

What was the point of the federal reserve?


I think it's a good question honestly.. cause I thought they were suppose to keep us out of the shite we are currently in?

I mean.. the government did make us give all our gold to them LINK

I wonder what deal they made to do this and crash the market in the 1930s







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el duderino III
Texas Fan
austin
Member since Jul 2011
1517 posts

re: What was the point of the federal reserve?


to regulate money creation in order to facilitate growth and investment. the mistake wasn't in it's creation, it was in including maintaining unemployment in it's mandate IMO. i found a blog post that puts it into layman's terms fairly well, but I can't find it right now.

basically controlled inflation is far more conducive to economic growth than deflation, which is inevitable under any kind of gold standard in which the money supply is fixed. if banks make loans to people and the money supply is fixed, investment becomes a zero sum game. If one investment pays off, another one elsewhere must not, so venture capital is significantly harder to come by, and a lot of good and likely profitable ideas go unfunded in favor of safer ones. allowing an institution to increase the supply of money as the demand for money rises as new agents enter the economy allows far more than only half of profitable investments to be made and more people (throughout the economy, not "the international banking cartel", whatever the frick that is) better off as a result

edited for clarity and grammar nazism



This post was edited on 12/3 at 8:23 pm


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mograyback
Missouri Fan
Member since Jul 2011
7102 posts

re: What was the point of the federal reserve?


quote:

el duderino III


It's hard to take someone serious when they write as poorly as you do..

To the OP, the Federal Reserved was created to enslave us with debt.

I bet most Americans don't even know the Federal Reserve is no more federal than Federal Express. It's not a part of our Federal Government.









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joshnorris14
Florida Fan
Florida
Member since Jan 2009
21225 posts

re: What was the point of the federal reserve?


quote:

I wonder what deal they made to do this and crash the market in the 1930s


There was no deal made. The expanded credit far too much in the 20's, the correction happened in the early 30's.






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joshnorris14
Florida Fan
Florida
Member since Jan 2009
21225 posts

re: What was the point of the federal reserve?


quote:

basically controlled inflation is far more conducive to economic growth than deflation, which is inevitable under any kind of gold standard in which the money supply is fixed. if banks make loans to people and the money supply is fixed, investment becomes a zero sum game. If one investment pays off, another one elsewhere must not, so venture capital is significantly hard to come by, and a lot of good ideas go unfunded in favor of safer ones. allowing some institution to increase the supply of money as the demand of money rises as new agents enter the economy allows far more than only half of profitable investments to be made and more people better off as a result



What's crazy is that the period that witnessed the most growth and increases in productive capacity in American history happened without a central bank. AMAZING!







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HempHead
Alabama Fan
Appalachia
Member since Mar 2011
14192 posts
 Online 

re: What was the point of the federal reserve?


Downward pressures on prices? The horror.

There's no way we could go to smaller denominations of money.






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ClydeFrog
Oklahoma Fan
Kansas
Member since Jul 2012
2983 posts

re: What was the point of the federal reserve?


LINK





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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
80464 posts
 Online 

re: What was the point of the federal reserve?


quote:

I bet most Americans don't even know the Federal Reserve is no more federal than Federal Express.

I didn't know that Federal Express was created by a congressional act and is overseen by congress or that the Congressional Budget Office audits Federal Express annually or that 100% of Federal Express' profits must be paid to the U.S. Treasury annually or that the Chairman of Federal Express is appointed by the President of the United States and confirmed by the senate.

Good to know. Thanks.






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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
80464 posts
 Online 

re: What was the point of the federal reserve?


quote:

What's crazy is that the period that witnessed the most growth and increases in productive capacity in American history happened without a central bank.


100% false.




This post was edited on 12/3 at 7:47 am


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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
80464 posts
 Online 

re: What was the point of the federal reserve?


quote:

cause I thought they were suppose to keep us out of the shite we are currently in?


What shite are we currently in?






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TheHiddenFlask
Clemson Fan
The Welsh red light district
Member since Jul 2008
16845 posts

re: What was the point of the federal reserve?


Duderino and Russian bringing the intellectual pain in here.







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bunky
LSU Fan
FREE EL GUACHO
Member since Jul 2011
4471 posts

re: What was the point of the federal reserve?


quote:

LSURussian




Boom of the year, you earn this bomb bag.






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ForeLSU
LSU Fan
The Corner of Sanity and Madness
Member since Sep 2003
33891 posts

re: What was the point of the federal reserve?


do you have a copy of that image that isn't 90,000 pixels wide?





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ForeLSU
LSU Fan
The Corner of Sanity and Madness
Member since Sep 2003
33891 posts

re: What was the point of the federal reserve?


quote:

It's hard to take someone serious when they write as poorly as you do..

To the OP, the Federal Reserved was created to enslave us with debt.








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TheHiddenFlask
Clemson Fan
The Welsh red light district
Member since Jul 2008
16845 posts

re: What was the point of the federal reserve?


I seriously thought he was being sarcastic until the last sentence.





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mograyback
Missouri Fan
Member since Jul 2011
7102 posts

re: What was the point of the federal reserve?


quote:

LSURussian



The Federal Reserve is not apart of our Federal Government.

I know you have a complex where you must disagree constantly, but there is nothing to argue here.. it's not an entity of the Federal Government.









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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
80464 posts
 Online 

re: What was the point of the federal reserve?


quote:

The Federal Reserve is not apart (sic) of our Federal Government.

I know you have a complex where you must disagree constantly, but there is nothing to argue here.. it's not an entity of the Federal Government.


Where did I say it IS a part of the Federal government? I only pointed out the direct connections between the Fed and our federal government.

You said the Fed is no more 'federal' than Federal Express, which is utterly laughable. If you can't see the ignorance of your statement, then you're dumber than I thought.....which is damn near impossible considering I formed my opinion about your intelligence when you wrote in another thread that Jesse Ventura is not an actor.

quote:

I know you have a complex where you must disagree constantly,

If you're ever right about something, I won't disagree with you.....



This post was edited on 12/3 at 11:17 am


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mograyback
Missouri Fan
Member since Jul 2011
7102 posts

re: What was the point of the federal reserve?


quote:

LSURussian


Really?

You made a smart arse response intending to show the Federal Reserve is essentially a part of the government..

Since you're so intelligent, I thought you would be able to pick up on a bit of sarcasm... the comment about it being no more federal than Federal Express wasn't exactly supposed to be taken literally. Of course the Federal reserve has more ties to the federal government than Fed Ex.




This post was edited on 12/3 at 11:36 am


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mograyback
Missouri Fan
Member since Jul 2011
7102 posts

re: What was the point of the federal reserve?


If you find yourself unsure about the Fed or possibly a supporter of this criminal cartel.

Some reading material..
LINK
LINK






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joshnorris14
Florida Fan
Florida
Member since Jan 2009
21225 posts

re: What was the point of the federal reserve?


quote:

100% false.


You try to falsify my statement using GDP as evidence .






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