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Money!
Hello
I've been watching some documentaries on money. What exactly is going on? They tell me a private corporation (the federal reserve) controls the money supply. Why? Is this also true in Canada? Does this entity create inflation? I don't know much about what is going on as my questions likely indicate [img]/images/graemlins/smile.gif[/img] |
#2
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Re: Money!
suggested reading:
Denationalisation of Money by Nobel Prize winner Friedrich Hayek. http://www.amazon.com/Denationalisat.../dp/0255362390 this book doesn't directly address the questions you are asking but if you are interested in learning about why a government monopoly in currency might be problematic, then you are going to want to read this. also, this is definitely a serious issue but be careful when reading up on this topic on the internet, its a topic that conspiracy theory types like to rant about. so there is a lot of junk out there. |
#3
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Re: Money!
The Federal Reserve isn't a completely private entity. It performs some regular banking functions, and it's technically owned by member banks. However, the federal government appoints the people who make decisions about monetary policy.
The Fed controls the money supply and therefore is responsible for inflation. The reason monetary policy is in the hands of a semi-independent body, rather than Congress or the Executive Branch, is (at least in theory) so that disinterested economists will make the best decisions for the economy as a whole. The concern is that politicians, who have to worry about short-term reelection, might favor the immediate economy at the expense of the long run. The Bank of Canada, the comparable institution of our northern neighbor, is similar in that it's operationally independent of the government, but it is a wholly public institution. |
#4
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Re: Money!
"The Fed controls the money supply and therefore is responsible for inflation."
The money supply influences the economy but is not solely responsible for inflation. |
#5
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Re: Money!
What else causes inflation and is deflation possible.
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#6
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Re: Money!
[ QUOTE ]
suggested reading: [/ QUOTE ] What Has Government Done to Our Money? I would recommend "The Case Against the Fed" first, but it's not available for free online. |
#7
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Re: Money!
[ QUOTE ]
Hello I've been watching some documentaries on money. What exactly is going on? They tell me a private corporation (the federal reserve) controls the money supply. Why? Is this also true in Canada? Does this entity create inflation? I don't know much about what is going on as my questions likely indicate [img]/images/graemlins/smile.gif[/img] [/ QUOTE ] Think about it this way: Given how the state currencies are inflating like crazy, wouldn't it seem natural to switch to a currency that is not being counterfeited daily? But that kind of freedom is not what we have. |
#8
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Re: Money!
[ QUOTE ]
[ QUOTE ] Hello I've been watching some documentaries on money. What exactly is going on? They tell me a private corporation (the federal reserve) controls the money supply. Why? Is this also true in Canada? Does this entity create inflation? I don't know much about what is going on as my questions likely indicate [img]/images/graemlins/smile.gif[/img] [/ QUOTE ] Think about it this way: Given how the state currencies are inflating like crazy, wouldn't it seem natural to switch to a currency that is not being counterfeited daily? But that kind of freedom is not what we have. [/ QUOTE ] I don't see why not. You can convert all of your money to gold coins if you want. |
#9
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Re: Money!
[ QUOTE ]
[ QUOTE ] [ QUOTE ] Hello I've been watching some documentaries on money. What exactly is going on? They tell me a private corporation (the federal reserve) controls the money supply. Why? Is this also true in Canada? Does this entity create inflation? I don't know much about what is going on as my questions likely indicate [img]/images/graemlins/smile.gif[/img] [/ QUOTE ] Think about it this way: Given how the state currencies are inflating like crazy, wouldn't it seem natural to switch to a currency that is not being counterfeited daily? But that kind of freedom is not what we have. [/ QUOTE ] I don't see why not. You can convert all of your money to gold coins if you want. [/ QUOTE ] My employer pays in state money, I have to pay taxes in state money, most stores only accept state money (because of their own engagements with taxes, etc). And I also believe that if you convert state money to gold or the other way around, that you have to pay taxes on it. I also think that you have to pay taxes on your assets. Which means that if you convert to gold, that you will start to owe more and more money each year. I also believe that in many point in time that the state has ceized a lot of gold and silver. I also believe that they have made certain gold/silver moneys illegal or at least are trying to. |
#10
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Re: Money!
[quoteGiven how the state currencies are inflating like crazy, wouldn't it seem natural to switch to a currency that is not being counterfeited daily?
[/ QUOTE ] If you are talking about a specie currency that is actually traded for goods youre just being absurd, and even that can be counterfeited. If you're talking about a specie backed currency there is nothing natural about going back to the one people seem to love, gold. 1. It dampens the economy. 2. It causes price instability. 3. It requires international cooperation to ensure a balance of gold reserves so that a market based balance of trade can be maintained, vs the manipulative possibilities of hording. 4. The dollar is backed by the GNP, and as long as money supply isnt allowed to grow substantially faster than GNP, it is non-inflationary. The gold standard was abandoned because it didnt work in an environment of rapid productivity growth, and it still wont. |
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