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Forum Post: How Can You Debate the Economy without Mentioning the Federal Reserve?

Posted 12 years ago on Oct. 17, 2012, 2:43 p.m. EST by TrevorMnemonic (5827)
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How Can You Debate the Economy without Mentioning the Federal Reserve?

Don't worry... they just won't mention the Federal Reserve. The people won't notice. Both Obama and Romney know the drill.

Unlimited resources for the banks, fat CEO bonuses, and nothing for the people. That is essentially the policy of the Federal Reserve in it's simplest form.

They completely disregard their mandate of a maximum employment economy and have yet to use any monetary solutions for increasing employment numbers.

http://www.federalreserve.gov/faqs/money_12848.htm

9 Comments

9 Comments


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[-] 1 points by nomdeguerre (1775) from Brooklyn, NY 12 years ago

Speaking of the suppression of discussion of the Fed, I just saw a post here on the Fed disappear. I updated the forum page and it was gone. I never had a chance to open it.

[-] 0 points by HCHC4 (-28) 11 years ago

Hey TM, looks like they are finally mentioning the Fed...

Meet the new boss, same as the old boss.

[-] -1 points by hazencage (58) 12 years ago

The Federal Reserve only controls the monetary base, and not the actual money supply. Therefore their impact on job creation has more of an indirect effect when compared to fisical policy. Fisical policy is controlled by our legislature and executive branches.

[-] 1 points by TrevorMnemonic (5827) 12 years ago

Who do you think determines the "money supply" ? - http://www.econlib.org/library/Enc/MoneySupply.html

"Federal Reserve policy is the most important determinant of the money supply. The Federal Reserve affects the money supply by affecting its most important component, bank deposits."

In regards to your comment about Fiscal policy... this is why we need monetary reform and need to be talking about the actions of the Federal Reserve. The Federal Reserve dishes out trillions to banks and corporations... they have a lot to do with the manipulation of the economy that benefits the 1%.

I'm just going to put this here - Dennis Kucinich speaks on the Federal Reserve and Monetary Policy in congress - http://www.youtube.com/watch?v=1pVV4n2lKHk

and this too - http://www.youtube.com/watch?v=oUpXDZFtEHw

[-] -1 points by hazencage (58) 12 years ago

//Who do you think determines the "money supply" ? -// various things ranging from inflation to demand. The most important thing though is the velocity of money. If the the velocity of money is stable than the reserves policies will have a larger impact, but if not then that impact will be small.

[-] 2 points by TrevorMnemonic (5827) 12 years ago

You're wrong if you think the Federal Reserve has nothing to do with the money supply. I already provided a credible source showing that.

I don't really know what part of my post you're trying to argue against or claim as inaccurate. What are you trying to prove?

[-] 2 points by nomdeguerre (1775) from Brooklyn, NY 12 years ago

He/she is only practicing garblement on you. Must have studied at the feet of that criminal fraud, Alan Greenspan.

[-] 1 points by TrevorMnemonic (5827) 12 years ago

I can tell. Their below comment didn't even answer my question of which part of my post they are disagreeing with. Just more "garblement" ...lol

[-] -1 points by hazencage (58) 12 years ago

I didnt say the federal reserve has nothing to do with the money supply, but instead i simply stated that they have direct control of the monentary base, and a indirect influence on the money supply. For example, the federal reserve could lower interest rates all they want, but if demand for tressury notes is low due a poor economy then consumer spending will not pick up. Secondly even if the demand for treassury notes is high, GDP and consumer spending wont budge unless the proceeds are spent on the real economy and not the stock market.( remeber when consumer spending increases so does the velocity of money, and as a result of this the money supply increases).