Audit the Fed? What would that accomplish?

[Verde]

Mr Skeptic,
Conspiracies dont have to be secret, just unbelievable to the uneducated. It is a numbers game, it has to function just below the radar of most people. You and mr central scrutinizer miss the class on stratum in the ding-a-ling school of economics you attended did you not? You see these crime banking families have meetings that hire people that hire people that hire people. Now you turn on the television most of the reports are ocassionally on monetary theory or policy. Just enough not to wake the masses from watching american idol and playing video games. You think that all of the 500 channels of television are independent and reporting everything. Consequently, there are only two things that people know about money 1)you need to work to make money 2)you can buy things with it. Now i dont know about you but I tend to think that if you give some stranger your paycheck for management, and he hires lawyers (using your own money) to inhibit my ability to see ALL of what you are doing, maybe, just maybe there might be some hanky panky going on. But thats just me. I for one will like to see the mechanics of the half a trillion foreign credit swap, and specifically how is that going to help these united states. Hell i would want to discuss in detail this half a trillion dollar foreign credit swap publicly. I will like someone managing my paycheck to be approachable and without counsel. I dont know about you central scrutinizer or skeptics but this is how i work. I guess i am unique in that manner.

Thanks to Google, I translated that to Hungarian.

Összeesküvések dont volna, hogy titkos, csak hihetetlen, hogy az iskolázatlan. Ez a számok játéka, azt a funkciót csak alul a radar a legtöbb ember. Ön és a mr központi scrutinizer hiányzik az osztály a réteg a ding-a-ling School of Economics Ön részt ugye? Látod, ezek a bűncselekmények banki családok találkoznak, hogy a bérleti embereknek, hogy az emberek, hogy a bérleti bérleti emberek. Most kapcsolja be a televíziót a jelentések nagy részét esetenként a monetáris elmélet és politika. Csak annyi, hogy ne ébressze fel a tömegek néz American Idol és a videojátékok. Azt hiszed, hogy az 500 csatornás televízió független és jelentési mindent. Következésképpen, csak két dolog, hogy az emberek tudják a pénzről 1) meg kell dolgozni, hogy a pénz 2) meg lehet vásárolni a dolgokat vele. Most én dont tud rólad, de én inkább hiszem, hogy ha ad egy idegen a csekk az irányítás, és ő azt bérlő ügyvédek (értelemszerűen a saját pénz), hogy gátolja a képességemet, hogy minden, amit csinálsz, talán, csak talán nem lehet némi hókusz panky folyik. De amit csak én. Én az egyik lesz, mint látni, hogy a mechanika a fél billió külföldi hitel-swap, és különösen hogy megy, hogy segítsen ezeknek az Egyesült Államokba. Hell szeretnék megvitatni részletesen a fél billió dolláros külföldi hitel-swap nyilvánosan. Én mint aki irányítása én csekk, hogy megközelíthető és nem tanácsot. Nem tudom rólad központi scrutinizer vagy szkeptikusok, de ez hogyan működik. Azt hiszem, én vagyok egyedülálló, hogy legyen.


Yes, makes a lot more sense now.

V.

 

[Travis]

Except, it hasn't. The Fed caused and presided over the biggest depression in US history, and numerous recessions since. The only job it has done, is debase the dollar by some 97% since its inception. This of course amounts to a massive tax, which few people seem to understand. The tax also happens to be regressive, which means it burdens the poor more than the rich.

We were still on the Gold Standard during the Great Depression which made efforts to get out of it almost useless. Countries that dropped the Gold Standard recovered much quicker.

 

[Tippit]

We were still on the Gold Standard during the Great Depression which made efforts to get out of it almost useless. Countries that dropped the Gold Standard recovered much quicker.

If it weren't for the Fed contracting the money supply by 33%, (after inflating it during the roaring twenties and causing stock market speculation) we wouldn't have had the Great Depression to begin with. Just ask Ben Bernanke. You don't "get out" of recessions and depressions by simply inflating prices. First, monetary inflation represents a transfer of wealth, so there is a basic inequity in this "solution". Second recessions are about the liquidation of bad investments. When the Fed goes on a free money binge, it typically results in bad or risky loans that otherwise wouldn't have occured, which results in malinvestment. This must be liquidated before any true economic recovery can commence. Healthy economies are not defined by artificially inflated prices, they're defined by productivity and growth.

History has shown that a gold standard alone fails to produce economic stability, but that's due to the real source of instability, which is fractional reserve banking.

 

[WildCat]

the real source of instability, which is fractional reserve banking.

Once again, do you see anything but a nation of subsistence farmers (after a few hundred million drop dead from starvation) after you succeed in banning fractional reserve banking?

How would anything get financed?

 

[timhau]

Maybe we should set aside some land for a new nation, United States of Goldbugia, where only real, gold-based money can buy things, and full-reserve banks guarantee that your deposits are always in the vault in your bank.

The land had better be fertile, because export industry is going to be real scarce in USG.

 

[drkitten]

You don't "get out" of recessions and depressions by simply inflating prices.

Actually, you can. Check out the famous Capitol Hill Babysitting Co-op for a well-documented example.

Once again, Tippit shows that there is no set of facts too simple and obvious for him to get wrong.

 

[TraneWreck]

Actually, you can. Check out the famous Capitol Hill Babysitting Co-op for a well-documented example.

Once again, Tippit shows that there is no set of facts too simple and obvious for him to get wrong.

What makes Tippit's stance doubly hilarious is that there's a major economic crisis happening in Greece that persists in part because they can't inflate their currency.

 

[Travis]

I never understand the obsession with the Gold Standard.

GDP of the United States in 2009: $14.266 trillion
Estimated value of all the Gold ever mined: $4.5 trillion

 

[drkitten]

I never understand the obsession with the Gold Standard.

Oh, it's easy.

If you're too dumb to know how to invest your money to stay ahead of inflation, then inflation robs you of purchasing power.

If you're too paranoid to trust anyone with your money in order to invest it for you to stay ahead of inflation, then inflation robs you of purchasing power.

 

[Skeptic]

Mr Skeptic,
Conspiracies dont have to be secret, just unbelievable to the uneducated.

Doesn't seem so to me. It's usually the uneducated who believe every conspiracy theory that comes down the pike. Those with economics degree tend to laugh at the economics conspiracy theories, just like engineers and scientists laugh at the "we never went to the moon" conspiracy theories, and biologists and geologists at "evolution is wrong, the earth is 6000 years old" conspiracy theories.

You see these crime banking families have meetings that hire people that hire people that hire people.

They do?

When was the last meeting? Where? Was it last year? This year? In Zurich? Venice? New York? Details, please.

Now you turn on the television most of the reports are ocassionally on monetary theory or policy. Just enough not to wake the masses from watching american idol and playing video games.

You mean television has BOTH serious AND entertainment programs???

Looks suspicious to me. Must be a conspiracy!

You think that all of the 500 channels of television are independent and reporting everything.

I would not at all expect television, especially independent television, to report "everything" -- only what sells.

There's demand for sports and (unsurprisingly) not much demand for a channel broadcasting hare-brained conspiracy theories, so such a channel will lose money for lack of viewers, so it doesn't exist any more than, say, the "Early Assyrian Archeology" channel does.

I mean, what did you expect?

Consequently, there are only two things that people know about money 1)you need to work to make money 2)you can buy things with it. Now i dont know about you but I tend to think that if you give some stranger your paycheck for management, and he hires lawyers (using your own money) to inhibit my ability to see ALL of what you are doing, maybe, just maybe there might be some hanky panky going on.

Hanky panky that's been going on for 100 years and nobody spilled the beans?

I will like someone managing my paycheck to be approachable and without counsel.

They usually are, only not to rude conspiracy theory nuts.

 

[drkitten]

What makes Tippit's stance doubly hilarious is that there's a major economic crisis happening in Greece that persists in part because they can't inflate their currency.

When you're wrong in theory, you can always argue that the theory is incomplete and that actual practice bears you out.

When you're wrong in practice, you can always argue that someone has tampered with the system, keeping it from operating as theory says that it should.

But when you're wrong in both theory and in practice,.... you might a Gold Bug.

 

[Tippit]

What makes Tippit's stance doubly hilarious is that there's a major economic crisis happening in Greece that persists in part because they can't inflate their currency.

Or, their crisis has to do with the fact that the government's budget deficit alone is 12.7% of the country's GDP, and their debt/GDP is 113%. The crisis is due to the malinvestment which has been the result of persistent euro-inflation for the past decade, combined with the fact that they can't service their enormous debt.

 

[Tippit]

Maybe we should set aside some land for a new nation, United States of Goldbugia, where only real, gold-based money can buy things, and full-reserve banks guarantee that your deposits are always in the vault in your bank.

The land had better be fertile, because export industry is going to be real scarce in USG.

You mean, US workers will actually make things again? And they will make them for consumption in the US? And the government won't be able to spend practically unlimited amounts of money on preemptive foreign wars, and corrupt domestic programs? I'd like to sign up.

 

[The Central Scrutinizer]

You mean, US workers will actually make things again? And they will make them for consumption in the US? And the government won't be able to spend practically unlimited amounts of money on preemptive foreign wars, and corrupt domestic programs? I'd like to sign up.

Congratulations. Welcome back to 1807!

 

[WildCat]

Congratulations. Welcome back to 1807!

When 95% of the country were subsistence farmers.

 

[Travis]

Congratulations. Welcome back to 1807!

Actually even in 1807 the US imported goods. I don't think there is any period in US history analogous to the "zero international trade" dystopia that Tippit seems to desire.

 

[Malerin]

Actually even in 1807 the US imported goods. I don't think there is any period in US history analogous to the "zero international trade" dystopia that Tippit seems to desire.

It wasn't too long ago we were running trade surpluses.

 

[Travis]

A trade surplus is different from disallowing imported goods altogether. Of course it wouldn't matter since no one would have money to buy any imports if we went to the Gold Standard.

 

[drkitten]

Or, their crisis has to do with the fact that the government's budget deficit alone is 12.7% of the country's GDP, and their debt/GDP is 113%. The crisis is due to the malinvestment which has been the result of persistent euro-inflation for the past decade, combined with the fact that they can't service their enormous debt.

Er,.... Euro-inflation?

Sorry, Tippit, but even you should be able to see the contradiction here. If there's inflation going on, then the value of the debt is contracting and Greece's position is getting better, not worse. (That's why inflation is good for borrowers and bad for lenders.)

 

[drkitten]

You mean, US workers will actually make things again?

That's right. They'll make,.... food.

And nothing else.

And they will make them for consumption in the US?

Or for sale abroad as cash crops, because that's the only way they will be able to get anything that doesn't grow on a farm.

tI'd like to sign up.

I'm sure you would. After all, the idea of reducing the United States to a nation of subsistence farmers is a position only an idiot could love.