Home Precious Metals

Poll: The Fed has raised interest rates; who is responsible for creating the Fed?

The Fed Board of Governors has finally decided to raise interest rates not because inflation is on the rise but mostly just because they can. What group is most responsible for the creation of the Federal Reserve?

Comments

  • OPAOPA Posts: 17,121 ✭✭✭✭✭
    where is the: All of the above option?
    "Bongo drive 1984 Lincoln that looks like old coin dug from ground."
  • cohodkcohodk Posts: 19,155 ✭✭✭✭✭
    Why would inflation be the only reason to raise rates?

    Some of you guys are so stuck in 1979.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • rickoricko Posts: 98,724 ✭✭✭✭✭
    The money game..... the only game larger - and more important - than politics.

    Although, the two are closely connected. Cheers, RickO
  • jmski52jmski52 Posts: 22,867 ✭✭✭✭✭
    The Fed just wants to make sure that this current economic boom doesn't spiral wildly out of control.



    Besides, the banks don't make nearly enough money unless their spreads are a lot wider. It's not enough to be bailed out by taxpayers and have their toxic assets redefined as good, they simply gotta have more and more tribute from real businesses too.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • DeepCoinDeepCoin Posts: 2,781 ✭✭✭
    To answer the question, the Federal Reserve Bank was created in 1912, when Woodrow Wilson signed the Federal Reserve Act into law. Republicans of the time had proposed a private sector model, but the progressives wanted a government run central bank. All of this is not too long after a series of banking crises in previous years.
    Retired United States Mint guy, now working on an Everyman Type Set.
  • hchcoinhchcoin Posts: 4,829 ✭✭✭✭✭
    Congress
  • derrybderryb Posts: 36,834 ✭✭✭✭✭
    The question is best answered by looking at who attended the secret meeting to establish the FED

    Natural forces of supply and demand are the best regulators on earth.

  • OPAOPA Posts: 17,121 ✭✭✭✭✭
    Originally posted by: derryb
    The question is best answered by looking at who attended the secret meeting to establish the FED



    After reading the article, I'm changing my vote to: "SOME OF THE ABOVE LISTED" A, B, D & E
    "Bongo drive 1984 Lincoln that looks like old coin dug from ground."
  • rickoricko Posts: 98,724 ✭✭✭✭✭
    Great article...thanks derryb....Cheers, RickO
  • cohodkcohodk Posts: 19,155 ✭✭✭✭✭
    Was the Fed created because the gold standard didn't work too well?
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • derrybderryb Posts: 36,834 ✭✭✭✭✭
    Originally posted by: cohodk
    Was the Fed created because the gold standard didn't work too well?

    I suspect the FED was created in part to facilitate the eventual removal of the gold standard. Without the restraints of a gold standard someone had to be in charge of unlimited money creation. As designed this allowed the bankers to be in charge.

    Natural forces of supply and demand are the best regulators on earth.

  • RRRR Posts: 627 ✭✭✭
    Read "The Creature from Jekyll Island."



    RR
    <html />
  • cohodkcohodk Posts: 19,155 ✭✭✭✭✭
    Originally posted by: derryb
    Originally posted by: cohodk
    Was the Fed created because the gold standard didn't work too well?

    I suspect the FED was created in part to facilitate the eventual removal of the gold standard. Without the restraints of a gold standard someone had to be in charge of unlimited money creation. As designed this allowed the bankers to be in charge.


    Bankers were always in charge. JP Morgan bailed out the USA before the Fed was created.

    Should one just ignore the extreme boom and bust cycles while we on the gold standard? Imagine going through a 2008 type crisis (and worse) every decade.

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • BaleyBaley Posts: 22,661 ✭✭✭✭✭
    Bankers were always in charge



    You mean "Moneylenders"? Yeah, just for a couple thousand years, eh? Some people act like they were the ones who noticed it image

    Liberty: Parent of Science & Industry

  • derrybderryb Posts: 36,834 ✭✭✭✭✭
    Originally posted by: Baley
    Bankers were always in charge

    You mean "Moneylenders"? Yeah, just for a couple thousand years, eh? Some people act like they were the ones who noticed it image

    The Federal Reserve Act gave them official control of the nations currency. Prior to that banks had to fight each other for table scraps.

    Natural forces of supply and demand are the best regulators on earth.

  • derrybderryb Posts: 36,834 ✭✭✭✭✭

    Natural forces of supply and demand are the best regulators on earth.

  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    Originally posted by: cohodk

    Was the Fed created because the gold standard didn't work too well?




    The extreme boom and bust cycles occurred because the bankers were cheating on the gold standard with paper money and paper money entries from 1812 to 1933. Blaming gold is like blaming the "messenger." The first big event were southern banks cheating on the gold standard from 1812-1823 and causing rampant inflation in the South. The govt had to step in to restore order to the southern banking system. No such inflation occurred in the northern banks who didn't lend out what they didn't have. Boom and bust cycles are caused by cheating bankers, regardless of what standard may be in play.



    The FED was created because a real gold standard worked too well...if adhered to. Bankers didn't want that. It's easier to cheat with no standard in effect. And topping things off with unregulated otc derivatives in 2000 was the icing on the cake (the banker's very own debt-money system without controls). The classic gold real bills provision ensured that the amount of circulating gold was a tiny fraction of the actual commerce being conducted.



    The FED was created by the strongest banks in the world. It passed the Senate in Dec 1913 while a significant percentage of Senators were on Christmas vacation. Wilson signed it shortly thereafter. Ironically, the newly minted FED + gold standard was shelved at the outbreak of WW1...and never was returned to the same level of monetary rigor that was in play from 1900-1913. Consider the true gold standard to be dead sometime in 1914. The critical real bills provision never came back to the gold standard after WW1. You don't have a working gold standard w/o it.



    From what I read Morgan was happy to rescue the banking system in the panic of 1907 to get his clutches on more of the financial system...and eventually get a Federal Reserve type agency in play (ie return control to a combination of US and European bankers). No good deed goes unrewarded in the banking sector. The boom and bust cycles have continued since the FED was created. The 1922-1937 boom/bust cycle was one of the worst two in US history. Only the 1894 depression was potentially comparable.



    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • jmski52jmski52 Posts: 22,867 ✭✭✭✭✭
    The extreme boom and bust cycles occurred because the bankers were cheating on the gold standard with paper money and paper money entries from 1812 to 1933



    I don't we've seen anything yet. Since 1999, the bankers have been cheating in every arena with direct conflicts of interest, leveraged derivatives, phony accounting and regs that were tweaked to allow it all.



    I don't know that I believe the theories which abound that suggest that each war the US finds itself in the middle of - is about stealing gold from the treasuries of foreign countries to compensate for gold being transferred to the Far East from the US Treasury - but there does seem to be an inordinate amount of crap being promulgated in congress, the agencies, the executive branch, the courts - and no accountability whatsoever.



    Gold, or no gold - this absolute lack of accountability seems to be the lynchpin of just about everything our government is doing.



    Besides creating the Fed, congress is still responsible for allowing the Fed to operate without transparency or accountability. Most in congress can't follow the Fed's explanations anyhow, and much of it is BS anyway, even if the Fed were to become more transparent.

    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • derrybderryb Posts: 36,834 ✭✭✭✭✭
    Postponing the inevitable while the "interest" due expands. Once all the possible bubbles have been blown and deflated the piper will be knocking on their door. Unfortunately the door of many others will also have a visitor.




    The much less pain should have been taken in 2009.

    Natural forces of supply and demand are the best regulators on earth.

  • DeepCoinDeepCoin Posts: 2,781 ✭✭✭
    I don't get what people are talking about with regard to "transparency" of the Fed. The entire balance sheet is available, they are on the carpet all the time with Congress and make regular statements. Exactly what do you want? The different heads of each region also make regular public comments. The chair has a 10 year appointment to keep politics out as much as possible.



    Exactly what else is there to ask for? Every move is watched like a hawk from the sidelines, to the point that the exact changing of statements word by word is examined, parsed and then fed into computers for buying and selling algorithms by the banks. What am I missing?
    Retired United States Mint guy, now working on an Everyman Type Set.
  • cohodkcohodk Posts: 19,155 ✭✭✭✭✭
    You are not missing anything deepcoin.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • johnny9434johnny9434 Posts: 28,341 ✭✭✭✭✭
    it's the Bolsheviks.
  • bronco2078bronco2078 Posts: 10,229 ✭✭✭✭✭
    Originally posted by: cohodk
    Originally posted by: derryb
    Originally posted by: cohodk
    Was the Fed created because the gold standard didn't work too well?

    I suspect the FED was created in part to facilitate the eventual removal of the gold standard. Without the restraints of a gold standard someone had to be in charge of unlimited money creation. As designed this allowed the bankers to be in charge.


    Bankers were always in charge. JP Morgan bailed out the USA before the Fed was created.

    Should one just ignore the extreme boom and bust cycles while we on the gold standard? Imagine going through a 2008 type crisis (and worse) every decade.



    What are these mysterious extreme boom and bust cycles of which you speak? You do realize that we were busily exterminating a continent of indigenous people stealing their land and quadrupling the area of the country . Are you suggesting if there had been a Fed in the 1800's they would have the country on an even keel through all that?

    The industrial revolution was happening. We started out the century with dirt roads , horsedrawn wagons and sailing ships. We finished with railroads and steam powered ocean transport. Cars and almost we had airplanes due to internal combustion engines , and the assembly line . Central heating , telegraph , electric power ,radio all these things and many more happened without the Fed in charge of the economy.

    The booms and busts of the post-Fed era dwarf the ones that came before it.

  • derrybderryb Posts: 36,834 ✭✭✭✭✭
    boom and bust cycles are the result of a central bank that continuously tries to adjust the throttle on the engine of economic growth. Too much gas overrevs the economy and creates malinvestment and speculation. Too compensate, too little gas is applied and the economy stalls. Best to keep the foot off the peddle and let the little engine smoothly idle. Economic growth will occur best when the unbiased and independent markets say it should, not when artificially stimulated by guessing fools.













    Direct proof that the FED is nothing short of a bunch of academics who operate based on classroom theory. Thank goodness my doctor makes his decisions by including hands on experience in his thought process.

    Natural forces of supply and demand are the best regulators on earth.

  • cohodkcohodk Posts: 19,155 ✭✭✭✭✭
    Originally posted by: bronco2078
    Originally posted by: cohodk
    Originally posted by: derryb
    Originally posted by: cohodk
    Was the Fed created because the gold standard didn't work too well?

    I suspect the FED was created in part to facilitate the eventual removal of the gold standard. Without the restraints of a gold standard someone had to be in charge of unlimited money creation. As designed this allowed the bankers to be in charge.


    Bankers were always in charge. JP Morgan bailed out the USA before the Fed was created.

    Should one just ignore the extreme boom and bust cycles while we on the gold standard? Imagine going through a 2008 type crisis (and worse) every decade.



    What are these mysterious extreme boom and bust cycles of which you speak? You do realize that we were busily exterminating a continent of indigenous people stealing their land and quadrupling the area of the country . Are you suggesting if there had been a Fed in the 1800's they would have the country on an even keel through all that?

    The industrial revolution was happening. We started out the century with dirt roads , horsedrawn wagons and sailing ships. We finished with railroads and steam powered ocean transport. Cars and almost we had airplanes due to internal combustion engines , and the assembly line . Central heating , telegraph , electric power ,radio all these things and many more happened without the Fed in charge of the economy.

    The booms and busts of the post-Fed era dwarf the ones that came before it.






    I suggest you get a history book. You make an incorrect assessment of what I think. Similarly, I could summize that you think all those wonderful creations are due to the gold standard. Is that what you think?



    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • bronco2078bronco2078 Posts: 10,229 ✭✭✭✭✭




    I have plenty of history books. The century from 1800 to 1900 was an incredible time in this country where a lot of things got done with no one in sole charge of our money , if there were ups and downs in that environment why would that surprise anyone? Since the Fed was put in charge of the US economy its only blown a hundred year bubble and by the way it hasn't exactly stopped booms or busts from happening so what was the point?.





    The gold standard was brilliant because it accepted the obvious , that when men were in charge they would bend the system to their own ends until it broke.

























  • derrybderryb Posts: 36,834 ✭✭✭✭✭
    Originally posted by: bronco2078



    The gold standard was brilliant because it accepted the obvious , that when men were in charge they would bend the system to their own ends until it broke.













    what work better than a gold standard would be this: For every percent the federal budget goes up congressional pay goes down one percent.



    Natural forces of supply and demand are the best regulators on earth.

  • cohodkcohodk Posts: 19,155 ✭✭✭✭✭
    Originally posted by: derryb
    Originally posted by: bronco2078



    The gold standard was brilliant because it accepted the obvious , that when men were in charge they would bend the system to their own ends until it broke.















    what work better than a gold standard would be this: For every percent the federal budget goes up congressional pay goes down one percent.












    I agree with derryb. Happy New Year.

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

Sign In or Register to comment.