Time: Will the Federal Reserve Cause a Civil War?

[libertybrewcity]

What is the most likely cause today of civil unrest? Immigration. Gay Marriage. Abortion. The Results of Election Day. The Mosque at Ground Zero. Nope.

Try the Federal Reserve. November 3rd is when the Federal Reserve's next policy committee meeting ends, and if you thought this was just another boring money meeting you would be wrong. It could be the most important meeting in Fed history, maybe. The US central bank is expected to announce its next move to boost the faltering economic recovery. To say there has been considerable debate and anxiety among Fed watchers about what the central bank should do would be an understatement. Chairman Ben Bernanke has indicated in recent speeches that the central bank plans to try to drive down already low-interest rates by buying up long-term bonds. A number of people both inside the Fed and out believe this is the wrong move. But one website seems to believe that Ben's plan might actually lead to armed conflict. Last week, the blog, Zerohedge wrote, paraphrasing a top economic forecaster David Rosenberg, that it believed the Fed's plan is not only moronic, but "positions US society one step closer to civil war if not worse."


Read more: http://curiouscapitalist.blogs.time.com/2010/10/19/will-the-federal-reserves-next-meeting-lead-to-civil-war/#ixzz12uzxzqht

[HOLLYWOOD]

What is the most likely cause today of civil unrest? Immigration. Gay Marriage. Abortion. The Results of Election Day. The Mosque at Ground Zero. Nope.

Central Bank plans to try to drive down already low-interest rates by buying up long-term bonds.


Cuz... no one is buying long-term borrowing.

This whole FED/US TREASURY scam is just that... they need a hidden tax on the people ASAP... the art is to impose one high enough without collapsing the economy.

Gesus the Australian Dollar is now on par with the Greenback... it was worth ~60 cents when I there. This is all in less than 10 years...

Banana Republic here we come

[AGRP]

Ask Henry Ford ;)

[Zippyjuan]

Cause a civil war? What a silly headline! Sure there is disagreement about if the Fed should try to stimulate the economy more (I don't think they should because it will have little to no effect anyways and potentially cause more problems down the road) but citizens taking up arms against each other over how they decide? Really now. I read a recent article which claimed that the Fed could at best reduce unemployment (the reason for the new easing) by a mere 0.2 points- (say from 9.6% to 9.4%.) Then the Fed is stuck with even more to try to unwind when the economy finally does start to pick up- making that already difficult task even harder. Banks already have excessive reserves of about a $trillion. Adding more will not have much of an effect on the economy. The article also said that their last round of easing only reduced interest rates by 0.6 percentage points. With rates already near zero. lowering them further is not only more difficult but will have an even smaller impact. The Emperor has no clothes on- the Fed cannot do anything about the economy but wait it out just like the rest of us. They have run out of ammo.

[WaterWine41]

Cause a civil war? What a silly headline! Sure there is disagreement about if the Fed should try to stimulate the economy more (I don't think they should because it will have little to no effect anyways and potentially cause more problems down the road) but citizens taking up arms against each other over how they decide? Really now. I read a recent article which claimed that the Fed could at best reduce unemployment (the reason for the new easing) by a mere 0.2 points- (say from 9.6% to 9.4%.) Then the Fed is stuck with even more to try to unwind when the economy finally does start to pick up- making that already difficult task even harder. Banks already have excessive reserves of about a $trillion. Adding more will not have much of an effect on the economy. The article also said that their last round of easing only reduced interest rates by 0.6 percentage points. With rates already near zero. lowering them further is not only more difficult but will have an even smaller impact. The Emperor has no clothes on- the Fed cannot do anything about the economy but wait it out just like the rest of us. They have run out of ammo.

I think if they raised rates it would actually help, but don't expect them to do that.

[Vessol]

Zippy, the Fed could easily throw a wrench in things and make the collapse even faster.

As for a civil war? I highly doubt it..the majority of people don't even know what the Federal Reserve is.

[Inkblots]

As for a civil war? I highly doubt it..the majority of people don't even know what the Federal Reserve is.

Of course not, but this blog post is trying to discredit the 'End the Fed' movement by tying it in with the 'Militia Scare' articles Time has been running recently.

[Travlyr]

What's a Fed Chairman to do?

If he inflates, then debts get paid albeit in dollars worth less.
If he doesn't inflate, then debts do not get paid.

[Zippyjuan]

I think if they raised rates it would actually help, but don't expect them to do that.

How do you think that raising interest rates would help?

[tangent4ronpaul]

Interesting timing there... Imagine the ripples if the meeting ended a mere 2 days earlier with the results announced then...

-t

[Travlyr]

Interesting timing there... Imagine the ripples if the meeting ended a mere 2 days earlier with the results announced then...

-t
No doubt! But then again the FED is not political. :rolleyes:

[fisharmor]

Civil War?
These people are worse at vocabulary than they are at economics.
It was not a civil war the first time, and it will not be a civil war this time.
The actions of a tyrannical government will cause secession, and the federal government will do its utmost to invade the newly sovereign states, crush them, reeducate its citizens, and further weaken local government.

Problem is, last time they didn't have a decade of war on the other side of the globe to pay for, so it might not go as well for them this time. Hell, last time the casualty numbers were insanely out of proportion with troop levels. They can't pull that off again.

[WaterWine41]

How do you think that raising interest rates would help?

Because they're artificially low right now and it will stop the coming hyper-inflation if they raise rates and stop with the quantitative easing.

It may hurt in the short term but it needs to happen soon before the entire country collapses.

[Zippyjuan]

Because they're artificially low right now and it will stop the coming hyper-inflation if they raise rates and stop with the quantitative easing.

It may hurt in the short term but it needs to happen soon before the entire country collapses.

You will want to raise intrest rates in the future- not now.

[low preference guy]

You will want to raise intrest rates in the future- not now.

right, you want to raise in the future, when it will be more painful. just like if you're an alcoholic. you want to become a little more dependent, and then try to stop drinking.