patrick.net

"history shows that the Federal Reserve System was carefully conceived and has been effective in executing its mission."

Absolutely correct, the Federal Reserve (and other central banks) have been effectively looking out for nationless financial interests at the expense of ordinary citizens all over the world for a very long time. In the case of the Fed. 100 years next Dec. 13th.

They are an evil part of an evil system. It is evil because an economy based on ever growing debt on a finite planet ultimately demands the consumption of all resources and thus the destruction of current ecosystems.

The mission of the Fed is to promote employment and keep inflation low. While there is always debate on how best to achieve this dual mandate, the historical records of the Fed demonstrate that the decisions have been economically -- not politically -- based.

Well, if you say so. That entire article reads as if it was written with a crayon. Can I get that five minutes back, please?

The author states their mission, and continually pats The Fed on the back, without mentioning that they've done little to nothing to keep inflation low and employment high. There was nothing of substance

errc says

That entire article reads as if it was written with a crayon. Can I get that five minutes back, please?

Sorry about that. Can't give you those minutes back, but I do appreciate your comments.

If the government is meant to act as a system that brings equality to an otherwise world doomed to consume itself of its inherent inequities, how does The Fed help to that end?

Shouldn't "we the people" desire a system that allows for all to participate, and as an end goal, to have each participant be allowed to take away from the system, a return either less then, or equal to, that which they put in?

"how does The Fed help to that end?"

It does the opposite. The maestro Greenspew and now the Bernank have engineered the greatest inequality of wealth in the history of our country.

You probably already know this but the Fed isn't part of the Government.

It is a corporation which has stolen the money power from the people of the United States.

Hilarious. Buying right into the Paulian right wing tea party propoganda plan.

Blame the Fed. Blame the Jews. There is no difference in the method of propoganda.

Never mind the Fed has done an awfully good job of accomplishing its mission.

Currency devaluation does not hurt you. As a net borrower for long term assets, inflation helps. That money you borrowed to buy the house? Don't you like paying it back with dollars less valuable? That money you spent on your education? Don't you like getting more of them on the payback, lowering your effective cost of education?

Stop confusing the store of your wealth with the means of exchanging it. Don't store your wealth in dollars.

David, the fed is, and has been a total failure. Please name one civilization which survived debasing it's own currency.

Debasing currency is stealing the value from it. That's dishonest and fraud being perpetrated on unsuspecting citizens. Those in charge should be incarcerated.

I suggest you learn more about The Fed, fiat currency and the evils of inflation. Once you understand how harmful those things are, I believe you'll change your opinion.

Respectfully,

Abe

david1 says

Currency devaluation does not hurt you. As a net borrower for long term assets, inflation helps. That money you borrowed to buy the house? Don't you like paying it back with dollars less valuable? That money you spent on your education? Don't you like getting more of them on the payback, lowering your effective cost of education?

Uhm.. currency devaluation absolutely hurts savers. However, the Fed serves the big banks and they have most of America serving as slaves to their interest payments on all the mortgage, consumer and student debts. So for a debtor society, devaluation works in its favor absolutely. But to the savers and those on fixed incomes (retired elderly), it absolutely sucks.

zerohedge.com if you want to learn more about the perils of power to the Fed.

also if you want to learn about currency debasement and how the U.S. devaluation affects the developing world and other currencies, read Currency Wars (can't remember author)... all those currencies linked to the dollar get pounded and it hurts much worse in places where they "store" the value of their fiat compared to a deflating U.S. currency.. hyperinflation on food, etc. and general societal discord. It's going to start again with the QE3 and food price spikes compounded by the current drought.

sorry, haven't figure out how to quote others and respond here yet... anyway, preceding quotes of David1 is actually only the first sentence! Rest is my commentary.... thank you for your patience! anywhere on here explain what to do with that code that shows up when you try to Quote another reader? hehe

david1: "Currency devaluation does not hurt you."

Nominee for most clueless statement of the year on patrick.net.

Congrats! Not easy to get nominated around here with those ducks posting.

Guys, guys, guys. Come on. Who is a net saver? In dollars, that is. In actual physical dollars. In the mattress. And make sure you exchange them for new models every year, less they accumulate collector value. Oftentimes I see the quote "The dollar has lost 95% of its value since 1913." Well check this out:

http://www.oldcurrencyvalues.com/largesize.html

$1 Federal Reserve note from 1917 worth $25 today. 95% devaluation is 20 times. So in this example, the actual paper money DID hold its value!

Not holding the physical dollars pays interest for the time value of money. This interest is above and beyond the rate of inflation - so a saver is not hurt - he actually maintains his value PLUS makes return (which can be risk-free, btw when you buy TIPS for example).

I know you guys got all charged up by Ron Paul, read a few blogs on Austrian economics, maybe even a book or two. Ron Paul is a foolish idealogue. Austrian economics is not based in empirical research. In order to believe Austrian economics, you have to disbelieve all of the data staring you right in the face. In order to disbelieve all of that data, you must subscribe to some conspiracy theory about Illuminatti or secret societies and banking cartels.

Occam's razor applies here. When comparing competing hypotheses, chose the simplest.

"...you must subscribe to some conspiracy theory..."

WRONG.

It is a conspiracy when all the hunters show up on the first day of the season? The system now only requires that nationless financial elite pursue their own interests, some communication of course but I don't think it fits with what most people would consider a conspiracy.

You're pretty ignorant calling Ron Paul foolish. A congressman who consistently tried to limit the size of government and follow the constitution.