Quotes on Capitalism

[Beartracks]

A lot of insightful, interesting thoughts on the nature and the functioning of capitalism:

http://www.basicincome.com/basic_capital.htm


This one caught my eye when I read it:

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"The very idea of a government that can create money for itself allowing banks to create money that the government then borrows and pays interest on is so preposterous that it staggers the imagination. Either everyone in government in charge of the procedure is deficient in intelligence or they have been bought and paid for by those who profit from their venality and infidelity to the public interest."

William F. Hixson, It's Your Money, 1997
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Weren't Obama's bailouts, in essence, a "creation" of money that did not previously exist, loaned by the government, and then repaid with interest by the corporations that received them? I recall reading multiple times that the American people would make money on the deal -- and I suppose that we did. But if the government can do that.... it's no wonder that conservatives were pissing and moaning and predicting doom for the entire effort.


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[SDuderstadt]

1. Dude...

Any interest the US pays to the Federal Reserve is required by federal law to be rebated back to the US Treasury.

http://www.publiceye.org/conspire/flaherty/flaherty8.html

[bemildred]

3. Who elected the bankers to be priests of the money supply?

If one must have a national bank, why is it in private hands? Why is it not a public utility run by public servants in the public interest?

[Taitertots]

4. We did when we elected the government that created it and when we elect people ....

Who appoint the leaders of the FED.

Some of the most popular answers are:
An independent monetary policy prevents politicians from manipulating the monetary policy during election cycles.

An independent monetary policy limits backlash against contraction decisions.

Politicians are notoriously ignorant of economic issues.

The leaders of the FED are legally required to act in good faith, and there is no evidence that they have not.

The FED is legally mandated to act in the public interest working toward long term stability in prices and employment.

[bemildred]

5. Appointed is not elected.

"An independent monetary policy prevents politicians from manipulating the monetary policy during election cycles." -- So bankers manipulate the politicians during election cycles instead.

"An independent monetary policy limits backlash against contraction decisions." -- What's wrong with "backlash"?

"Politicians are notoriously ignorant of economic issues." -- And bankers crash the economy every 5 or 6 years.

"The leaders of the FED are legally required to act in good faith, and there is no evidence that they have not." -- Right ...

"The FED is legally mandated to act in the public interest working toward long term stability in prices and employment." -- So basically then, they have utterly failed their legal mandate.

[Taitertots]

7. There are thousands of people working for the government that are not elected, why target the FED?

"So bankers manipulate the politicians during election cycles instead."
That is a problem that is totally unrelated to the FED. Why don't you want stronger restrictions on politicians instead of giving them more power to be manipulated into using?

"An independent monetary policy limits backlash against contraction decisions." -- What's wrong with "backlash"?"
Why do you think the central bank should be punished for making decisions that will ensure long term stability in prices and employment?

""Politicians are notoriously ignorant of economic issues." -- And bankers crash the economy every 5 or 6 years."
There has been two major adjustments in the last 100 years. Neither of which caused an economic collapse. There were significantly more negative adjustments before the creation of the FED. The assertion that bankers have crashed the economy every 5 years is laughable.

""The leaders of the FED are legally required to act in good faith, and there is no evidence that they have not." -- Right ..."
Do you have any evidence that they didn't act in good faith as part of their duties at the FED? There is none.


""The FED is legally mandated to act in the public interest working toward long term stability in prices and employment." -- So basically then, they have utterly failed their legal mandate.
Prices are stable and unemployment is in the single digits. Failed...they are doing great.

[bemildred]

8. Right, everything is peachy.

Good luck selling that.

[Taitertots]

9. Single digit inflation, single digit unemployment, rising GDP.....

All our remaining major problems are totally republican based and unrelated to the FED.

[bemildred]

10. Right, the Fed is irrelevant too. nt

[Taitertots]

11. Why don't you produce something that shows that they are not?

Or is expecting you to think and support your opinions too much to expect?

[bemildred]

12. You said it, not me. nt

[Taitertots]

13. When I said it, it came with objective facts. Single digit inflation, single digit unemployment....

If you want to know how republicans and not the FED caused the majority of our problems, I'll gladly discuss it with you. You will have to produce something that shows what your alleged grievances with the FED are.

[bemildred]

14. "All our remaining major problems are totally republican based and unrelated to the FED. " nt

[Taitertots]

15. What are our remaining problems?

Health care costs- Caused by Republicans, outside the ability of the FED to regulate
War costs- Caused by Republicans, outside the ability of the FED to regulate
Deregulation- Caused by Republicans, outside the ability of the FED to regulate
Mortgage Securitization, CDOs, CDO squared...- Caused by Republicans, outside the ability of the FED to regulate
High fuel costs- Not directly caused by Republicans, outside the ability of the FED to regulate
Accelerating income and wealth inequality- Caused by Republicans, outside the ability of the FED to regulate
Regressive taxation- Caused by Republicans, outside the ability of the FED to regulate


Do you have any problems you would like to add? Or would you like to explain how the FED could change these without dramatically overstepping their legal authority?

[SDuderstadt]

6. Jesus...

Here we go again.

The Federal Reserve is an independent federal agency, with the Board of Governors nominated by the President and confirmed by the Senate. The Federal Reserve is not "owned" by anyone.

The regional Federal Reserve Banks are "owned" by the member banks, who are required to purchase "subscription stock" (one of the ways the Fed is funded), however, this "ownership" is hardly the way one thinks of ownership. The member banks cannot sell their stock and, although each regional bank elects a board of directors, that board is limited to implementing the policies set out by the Board of Governors previously mentioned.

Please stop spreading myths about the Federal Reserve, especially since those myths originate from the political right.

http://www.publiceye.org/conspire/flaherty/Federal_Reserve.html

[Mist]

2. Thanks for the site--bookmarked. nt