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View Full Version : Economic: Monetary Policy: Question about Dr. Paul and the Fed.




Rebel38
01-08-2012, 10:35 PM
Newbie here. Been a huge supporter for Dr. Paul the past year and agree with almost everything he says.

One question though. Paul and many others have been stating the need to End the Fed. Does Ron Paul really want to end the fed or just audit/reform/investigate it? And if he DOES want to abolish it, what will take the Federal Reserve's place as a central bank if anything?

For the record, many others, including my 12th grade economics teacher when I asked him about it, said that abolishing the Fed could severely diminish, even destroy, our economy. I am also aware of all the major problems linked to the Fed.

Just a question.

bluesc
01-08-2012, 10:37 PM
He plans to legalize competing currencies which should eliminate the fed in a market-based way rather than forcefully.

Chances are you won't be seeing the end of the fed under a Paul Presidency. You will most likely see a full audit though, and a new fed chairman who will get things under control.

Rebel38
01-08-2012, 10:48 PM
Would this involve going back to a gold standard? If so, how would this eliminate the fed?

Excuse me for asking so many questions.

bluesc
01-08-2012, 10:51 PM
Would this involve going back to a gold standard? If so, how would this eliminate the fed?

Excuse me for asking so many questions.

It would legalize gold and silver as a currency. In fact, it would legalize any form of currency. Ron's reasoning (admittedly I'm not too educated in this) is that people would move to gold, save in gold, etc, and that would eliminate the need for the fed.

Welcome btw!

sratiug
01-09-2012, 02:13 AM
As stated above, Ron favors competing currencies to let the FED die a gradual death.

But I'd point out that your economics professor apparently does not believ in the Constitution, which says only gold and silver may be legal tender. And he apparently believes that counterfeiting (punishable by death under the Coinage Act) is essential to a sound economy, which is a lie. That's what the FED does, it prints money, inflating the money supply, which leads to rising prices. Or sometimes, as in the Great Depression, it contracts the money supply, causing recessions and depressions.

A central bank is a plank of the Communist Manifesto and was bitterly opposed by Thomas Jefferson and Andrew Jackson, and for good reason. Ask your economics professor why he is a socialist. Arbitrarily fixing the price of money (setting interest rates) is the same as government fixing the price of eggs and milk. It can never work properly. Sure, we'd like eggs and milk to be a lot cheaper, but then there would be no eggs or milk. They make the money cheaper, and you lose the ability to buy anything with it because it is worth less. They stole the purchasing power of your money and gave it to their friends.

The Beastly One
01-09-2012, 09:15 PM
Newbie here. Been a huge supporter for Dr. Paul the past year and agree with almost everything he says.

One question though. Paul and many others have been stating the need to End the Fed. Does Ron Paul really want to end the fed or just audit/reform/investigate it? And if he DOES want to abolish it, what will take the Federal Reserve's place as a central bank if anything?

For the record, many others, including my 12th grade economics teacher when I asked him about it, said that abolishing the Fed could severely diminish, even destroy, our economy. I am also aware of all the major problems linked to the Fed.

Just a question.I am not surprised that your economics teacher told you that. It is a propogandized position furthered by the bankers and economists who devised the Fed. Several of the people involved in the creation of the fed were the authors of advanced economics textbooks and treatises. The fact is that the Fed is UNCONSTITUTIONAL and deceptive. Even though the Federal Reserve Bank is a privatedly owned bank it bears the moniker "Federal". It is NOT a governmental agency. The reason they chose this name for their private bank is so that the average person only observing in passing would erroneously assume that the Fed was a government agency and not a private one. The subject of naming this bank was actually the subject of lengthy debate at the congress of the Bilderberg Group that same year, most concern arising from the unconstitutionality of the bank on its face. The removal of the Fed can and I'm sure will cause some practical issues that will have to be sorted out, but it will NOT collapse our economy. The Fed economy is based entirely on the idea of debt and interest on debt. The interest is controlled by the Fed, and usually it is manipulated to the overall benefit of the banking firms that own the banks overall. The problem comes in when the economy dips, and to maintain the projected earnings for the Fed that fiscal quarter, the director of the Fed adjusts interest rates to stimulate the public retrieval of more debt. However, doing this during the normal ebb and flow of economic movement on a national level creates larger and larger troughs and peaks in the cycle - like waves being created in a pool. The more splashing, the bigger the waves. Some economists refer to this as creating a "bubble". With REAL money the value is stable, and fluxuating interest rates do not effect the value of true money, because inflation (the normal result of creating bubbles) has no bearing upon that which has a fixed value. If you were to purchase a silver dime right now for the silver weight (collector value notwithstanding)you would pay about $3.50 US. That means that since the time of the silver dimes regular circulation inflation has devalued our current money 35 times over the life of the Fed. Thanx Federal Reserve!!! However, the value of the dime remains stable. You can do the rest of the math on your own I assume...