Question for you smart political types

[Wilson]

Why does the US Gov't employ a private industry such as the Federal Reserve to generate money while paying points for this money?

If I am not mistaken, it is constitutional for our government to manufacture money at zero % interest.

Is it also true that most federal income tax is used to pay the federal reserve?? Why does this happen?

 

[IntenseOperator]

It's Bush's fault

-Sponge

 

[The Sponge]

It's Bush's fault

-Sponge

nah its the nitwits that voted for him. Without those pin heads he couldn't be able to pull what he does. Im not gonna apologize for having some foresight. Actually it really wasn't that hard to figure out but we have a lot of retarded people living in this country and i think im responding to one..

 

[IntenseOperator]

nah its the nitwits that voted for him. Without those pin heads he couldn't be able to pull what he does. Im not gonna apologize for having some foresight. Actually it really wasn't that hard to figure out but we have a lot of retarded people living in this country and i think im responding to one..

I guess you stuck to the thread topic for once

lol

 

[The Sponge]

I guess you stuck to the thread topic for once

lol

Cous, honestly i was breaking balls just like you but you are a strange dude. You say im high jacking a thread but you start the jacking . In another thread A guy rips a pick of Raymonds (in the dumpster now), you insult the guy for doing it, yet you do the same thing. :shrug:

 

[Wilson]

I probably should have titled this "fawcking idiots only"

Probably would have gotten my questions answered.

:SIB :shrug:

 

[JCDunkDogs]

Why does the US Gov't employ a private industry such as the Federal Reserve to generate money while paying points for this money? If I am not mistaken, it is constitutional for our government to manufacture money at zero % interest.

Oh, you wanted a REAL answer. Well, its a curious question, and sort of sounds like a prelude to someone's libertarian discourse on the subject.

Short Answer to your question:
A Fed is necessary because the gov't couldn't handle the job; and no one works for free.

Money is a funny thing. The dollar stands or falls on our opinion of its strength. Perception is everything.

Not that I care, but why are these questions that important? The Federal Reserve System has created the most powerful engine for economic growth known to man. Should it be changed?

I'll reserve the long answer for another time.

 

[gardenweasel]

It's Bush's fault

-Sponge

:mj07: :142smilie


hall of famer,i.o.......:clap:

 

[djv]

With the world now smaller by instant info. The Fed has more to look at. So many countries economies now so much larger then in past. It can affect us faster then it did before. Part of that reason is countries like China hold 10% of our dept. Japan has about 6%. The rest of the world mostly from Europe holds the rest. Our dollar can now be affected faster by these nations then in past. Fed has to be careful not to print to much it could cause interest rares to be affected. Now we need some one who really knows his or her chit to give you a better answer. I'm not the one. But I tried. JC was right about Fed needing to be independent.

 

[JCDunkDogs]

Good points, djv. I don't know that much about the issue, except the history of it. Most folks know what money is, but not when you talk in terms of currency and credit.

There is more to it than just printing money. It is true that the Government can print money based on its own fiat, but there must be CONTROL of the money supply to have an efficient currency. Control means having enough cash reserves in place. Local economies can experience temporary shortages.

Historically, there have been many attempts by monopolies to corner the market on one commodity or another, often resulting in currency and credit crunches, and sometimes bank panics. Having a Fed in place bolsters these local economies, and builds depositor confidence.