Contrarian Posted January 26 Report Share Posted January 26 (edited) Quick random question on a nightly rant: Which one would you choose and why? a) The Federal Reserve (the Fed) to stay relatively independent of government to isolate the Fed from day-to-day political pressures in fulfilling its varying roles. Being investors, even if they make terrible mistakes, at the end the main goal is to be pragmatic and aim for stability. b) The Federal Reserve is given fully to "The People" then one man like Donald Trump or better yet Bernie Sanders, he likes to spend more digs in very deep and bankrupts the country. This scenario applies to any populist which thinks with his heart, not with his brain. ---> My choice, as you can spot from my BIAS in writing, is A) Anyone else wants to argue it opposite? Edited January 26 by Contrarian Quote Link to comment Share on other sites More sharing options...
Hodad Posted January 26 Report Share Posted January 26 1 hour ago, Contrarian said: Quick random question on a nightly rant: Which one would you choose and why? a) The Federal Reserve (the Fed) to stay relatively independent of government to isolate the Fed from day-to-day political pressures in fulfilling its varying roles. Being investors, even if they make terrible mistakes, at the end the main goal is to be pragmatic and aim for stability. b) The Federal Reserve is given fully to "The People" then one man like Donald Trump or better yet Bernie Sanders, he likes to spend more digs in very deep and bankrupts the country. This scenario applies to any populist which thinks with his heart, not with his brain. ---> My choice, as you can spot from my BIAS in writing, is A) Anyone else wants to argue it opposite? A, always A. It would be pure insanity to give politicians the keys to the central bank. 1 Quote Link to comment Share on other sites More sharing options...
Contrarian Posted January 26 Author Report Share Posted January 26 (edited) @myata any thoughts on the choices above? Is there a c) ? 😄 Edited January 26 by Contrarian Quote Link to comment Share on other sites More sharing options...
Dougie93 Posted January 26 Report Share Posted January 26 in actual fact, scenario B already happened a long time ago Quote Link to comment Share on other sites More sharing options...
Rebound Posted January 26 Report Share Posted January 26 9 hours ago, Contrarian said: @myata any thoughts on the choices above? Is there a c) ? 😄 I don’t think the Federal Reserve is the entity which determines how much money the Federal government borrows and spends. That entity is Congress. So I think your A and B is invalid. The question is whether, B, we want the President to set the prime interest rate. Quote Link to comment Share on other sites More sharing options...
Dougie93 Posted January 26 Report Share Posted January 26 1 hour ago, Rebound said: I don’t think the Federal Reserve is the entity which determines how much money the Federal government borrows and spends. That entity is Congress. you are conflating fiscal policy with monetary policy the Congress borrows the money from the central bank to spend but the Congress does not determine how much money is available to borrow Congress delegated that responsibility to the Federal Reserve in 1913 through the Federal Reserve Act the Fed is not part of the federal government, Congress does not control it the Federal Reserve is not the government, it is a private cartel owned by the major banks the Fed is run by the Federal Reserve Board who are nominated by the President Quote Link to comment Share on other sites More sharing options...
Rebound Posted January 26 Report Share Posted January 26 27 minutes ago, Dougie93 said: you are conflating fiscal policy with monetary policy the Congress borrows the money from the central bank to spend but the Congress does not determine how much money is available to borrow Congress delegated that responsibility to the Federal Reserve in 1913 through the Federal Reserve Act the Fed is not part of the federal government, Congress does not control it the Federal Reserve is not the government, it is a private cartel owned by the major banks the Fed is run by the Federal Reserve Board who are nominated by the President I disagree with your statement that the Federal Reserve is a cartel owned by the major banks. Its management is overwhelmingly composed of Federal Government appointees. Banks do have to put stock into the Fed but they cannot sell it or use it as collateral. Quote Link to comment Share on other sites More sharing options...
Dougie93 Posted January 26 Report Share Posted January 26 9 minutes ago, Rebound said: I disagree with your statement that the Federal Reserve is a cartel owned by the major banks. Its management is overwhelmingly composed of Federal Government appointees. Banks do have to put stock into the Fed but they cannot sell it or use it as collateral. owning stock in the central banks does not give you a controlling share central banks are private corporations owned by the banks the member banks within the cartel select 6 of the 9 Governors, the President only nominates 3 of them Congress has no role at all but suit yourself, I was really just clarifying things for the rest of the forum they can do their own research as they like Quote Link to comment Share on other sites More sharing options...
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