Economic Crisis; Solutions

[Lumber Joe]

Just waiting. Government can not really help. Only thing it can do make it more severe.

[Buffy]

Originally Posted by Lumber Joe

Just waiting. Government can not really help. Only thing it can do make it more severe.

What is your theory for how government has evolved? Why does it exist at all if it never can help?

If you're interested in discussing this topic (which is getting off the topic of the thread) please do open a new thread!

The world is populated in the main by people who should not exist,
Buffy

[wufwugy]

Originally Posted by Lumber Joe

Just waiting. Government can not really help. Only thing it can do make it more severe.

So said Hoover as he and his followers turned a recession into a Great Depression

Then FDR shows up and puts government to work and creates the strongest economy in all of history by far, strongest working class in all of history by far, and the longest period in US history without financial failures by far; and this period of absence of financial failures would be able to stretch on forever under FDR-based governmenting except the American people decided to allow the wealthy to fool them again and return us to the anti-middle class, boom/bust economy perpetuated since the rise of the nation until FDR

[Racoon]

Originally Posted by wufwugy

The relationship is substantially more highly interdependent and nuanced than this suggests.


And go against over a century of economic understanding?

Destorying the fed is to economics what destroying the laboratory is to biology. Like usual, it's not THAT something is used, but HOW something is used

I realize the intertwinedness of the Free Trade and what not... But basically the average American owes teh Chinese $6,000. Give or take a few Yuans.

The Federal Reserve system has No More to do with the government than Federal Express. Its Banking Cartel that Woodrow Wilson himself regretted passing in 1913 under the cloak of Darkness..

What happened to our currency being backed by Gold and Silver??

Without correcting these mistakes, our economy is contolled by outside influences.

[Buffy]

Originally Posted by Racoon

What happened to our currency being backed by Gold and Silver??

Blame *Populist* presidential candidate, William Jennings Bryan...

If they dare to come out in the open field and defend the gold standard as a good thing, we shall fight them to the uttermost, having behind us the producing masses of the nation and the world. Having behind us the commercial interests and the laboring interests and all the toiling masses, we shall answer their demands for a gold standard by saying to them, you shall not press down upon the brow of labor this crown of thorns. You shall not crucify mankind upon a cross of gold.

Destiny is no matter of chance. It is a matter of choice. It is not a thing to be waited for, it is a thing to be achieved,
Buffy

[wufwugy]

Originally Posted by Racoon

I realize the intertwinedness of the Free Trade and what not... But basically the average American owes teh Chinese $6,000. Give or take a few Yuans.

Not quite. This interdependency is to such a degree that it's not purely a creditor/debtor situation as the lay see it. We could default on China's credit and it would probably hurt them at least as much as us. The notion that it's cut and dry is misleading, and the notion that our being in debt to them is bad for us but not them is misleading.

The Federal Reserve system has No More to do with the government than Federal Express.

The Fed is an financial institution for economic purposes, and that has everything to do with government

What happened to our currency being backed by Gold and Silver??

Economists developed more knowledge. There are a whole host of problems with backed currency instead of fiat currency. The lay tend to not like fiat currency since backed currency advocates can spin the 'inflation tax' well.

One of the strongest examples in history of fiat currency trouncing backed currency: leaving the Gold Standard was paramount in the world climbing out of the Great Depression. Fiat currency can be misused tremendously, though, but that doesn't negate the fact that when used according to contemporary understanding it works better than backed currency.

Without correcting these mistakes, our economy is contolled by outside influences.

I can't seem to quite understand how so many Americans can live in the, far and away, strongest and most influential economy on the planet yet think it actually plays the submissive role.

[charles brough]

Originally Posted by wufwugy

I can't seem to quite understand how so many Americans can live in the, far and away, strongest and most influential economy on the planet yet think it actually plays the submissive role.

I agree completely. I think this negativism is due to the current slump itself. People hear so much bad news they cannot really relalize that it is almost over for a while and that we are already beginning to turn around.

[Racoon]

Originally Posted by wufwugy

The Fed is an financial institution for economic purposes, and that has everything to do with government


.

We can respectfully disagree wufwugy.

The Federal Reserve System (also the Federal Reserve; informally The Fed) is the central banking system of the United States. Created in 1913 by the enactment of the Federal Reserve Act (signed by Woodrow Wilson), it is a quasi-public (government entity with private components) banking system[1] that comprises (1) the presidentially appointed Board of Governors of the Federal Reserve System in Washington, D.C.; (2) the Federal Open Market Committee; (3) twelve regional privately-owned Federal Reserve Banks located in major cities throughout the nation acting as fiscal agents for the U.S. Treasury,each with its own nine-member board of directors; (4) numerous other private U.S. member banks, which subscribe to required amounts of non-transferable stock in their regional Federal Reserve Banks; and (5) various advisory councils. Since February 2006, Ben Bernanke serves as the Chairman of the Board of Governors of the Federal Reserve System. Donald Kohn is the current Vice Chairman (Term: June 2006 - June 2010).
Federal Reserve System - Wikipedia, the free encyclopedia

[Zythryn]

Originally Posted by Racoon

We can respectfully disagree wufwugy.

Racoon, I think the truth lies somewhere between your position and wufwugy's.
For example, your same quote with bold inserted in different places supports wufwugy's position:

The Federal Reserve System (also the Federal Reserve; informally The Fed) is the central banking system of the United States. Created in 1913 by the enactment of the Federal Reserve Act (signed by Woodrow Wilson), it is a quasi-public (government entity with private components) banking system[1] that comprises (1) the presidentially appointed Board of Governors of the Federal Reserve System in Washington, D.C.; (2) the Federal Open Market Committee; (3)twelve regional privately-owned Federal Reserve Bankslocated in major cities throughout the nation acting as fiscal agents for the U.S. Treasury,each with its own nine-member board of directors; (4) numerous other private U.S. member banks, which subscribe to required amounts of non-transferable stock in their regional Federal Reserve Banks; and (5) various advisory councils. Since February 2006, Ben Bernanke serves as the Chairman of the Board of Governors of the Federal Reserve System. Donald Kohn is the current Vice Chairman (Term: June 2006 - June 2010).
Federal Reserve System - Wikipedia, the free encyclopedia

The government created it, and I think that maintaining the economy is an aspect of the government. It is influenced by non-governmental forces, but is not completely unconnected (imo).

[Racoon]

Of course there's a connection between $U.S. Dollar Currency and the Government. thats a No-Duh.
Its just that the Federal Reserve is a Private Banking institution. Not a federal government run operation.

It should also be noted much of our our currency is printed in South Korea. Hows about that??
Apparently it costs only $0.03 to print a paper bill in S. Korea compared to $0.05 to print it here where its legal tender.

If you think everything is hunky-dorey, then Great. Keep your head in the sand.