Do you think the Federal Reserve helps or hurts the American economy?

[Tech Explorer]

I think it hurts the economy and needs to be abolished. Your thoughts.

 

[Hameister]

I think it hurts the economy and needs to be abolished. Your thoughts.

How does the Federal Reserve hurt the economy, and why does it need to be abolished? Please explain.

 

[Tech Explorer]

How does the Federal Reserve hurt the economy, and why does it need to be abolished? Please explain.

Sure. The FR exceeds the market by restricting the money too much and other times by flooding the American economy with too much money. The American economy can better manage its money than the FR can.

 

[superman22x]

How does the Federal Reserve hurt the economy, and why does it need to be abolished? Please explain.

It's a private entity. There is more debt than there is money in the world. The Federal Reserve has a monopoly on our monetary system basically. Having a central bank such as that is bad. Having a debt based monetary system is really bad. It will collapse, and it doesn't take long for it to do so.

There is nothing government related about the Federal Reserve. Their name suggests otherwise, most people think they are run by the government. The government really has no control in creating money in our economy. Only the Federal Reserve does, in the form of loans.

 

[Tech Explorer]

It's a private entity. There is more debt than there is money in the world. The Federal Reserve has a monopoly on our monetary system basically. Having a central bank such as that is bad. Having a debt based monetary system is really bad. It will collapse, and it doesn't take long for it to do so.

There is nothing government related about the Federal Reserve. Their name suggests otherwise, most people think they are run by the government. The government really has no control in creating money in our economy. Only the Federal Reserve does, in the form of loans.

Please correct me if I'm wrong. Wasn't the FR established by Congress back in 1913 and isn't its head approved by Congress?

 

[setishock]

Nicknamed the FED in recent years, Greenspan, who recently retired from there, was the head fed. You may have or not taken notice when the country held its breath awaiting the word from the FED as to what interest rates were going to be set to. Now granted those interest rates were for the FED making loans to banks. But it did have a trickle down affect as in how much it would cost you to take out a loan. Housing construction would tetter on which direction the rate would go in. Contractors taking out spec loans would either have to pay a higher rate in some cases or go out of business.
If you were to do away with the FED this country's economy would be thrown in to turmoil.
And yes the head fed was nominated by the president and had to be approved by congress and the senate.

 

[Tech Explorer]

Nicknamed the FED in recent years, Greenspan, who recently retired from there, was the head fed. You may have or not taken notice when the country held its breath awaiting the word from the FED as to what interest rates were going to be set to. Now granted those interest rates were for the FED making loans to banks. But it did have a trickle down affect as in how much it would cost you to take out a loan. Housing construction would tetter on which direction the rate would go in. Contractors taking out spec loans would either have to pay a higher rate in some cases or go out of business.
If you were to do away with the FED this country's economy would be thrown in to turmoil.
And yes the head fed was nominated by the president and had to be approved by congress and the senate.

The way I see it, local and regional banks would be more responsive to their respective economies than the Fed ever could be so I think the country would be better off not having these banks not tethered to the Fed. And isn't it true we didn't have depressions before the Fed existed?

 

[Hameister]

While I am not now, and have never been a proponent of Federal Regulatory agencies making decisions, that could be better handled by states or individuals, I need to make an exception in the case of the Federal Reserve.

Printing tons of money as well as some other protocols on which the Fed. has embarked in recent years, doesn't sit well with me.

However, during the past 25 years or so, the decisions made by the Feds have on numerous occasions either avoided recessions, or reduced it's depth. The ability to move prime interest rates slightly, in one direction or another, have generally had a positive effect on the economy.

Is the Federal Reserve a perfect finite answer to all economic woes, no, far from it. On the other hand, to abolish it completely, is like throwing the baby out with the bathwater, it makes no sense.

 

[setishock]

The way I see it, local and regional banks would be more responsive to their respective economies than the Fed ever could be so I think the country would be better off not having these banks not tethered to the Fed. And isn't it true we didn't have depressions before the Fed existed?

Been listining to Rush Limbaugh again huh?

 

[Tech Explorer]

Been listining to Rush Limbaugh again huh?

Believe it or not, I don't listen to that blowhard LOL. I'll be following this thread to see what others think.