RE: Social Norm Pressured Sharing vs. Voluntary Sharing
I respect and appreciate that you have put the time into responding so eloquently! I understand that there are other economic schools of thought, however I find Keynesian economics to be completely asinine and believe a collapse is imminent and that the system is beyond repair. The federal reserve has a God complex if it thinks that it has a moral right to control money supply. Money supply can not be controlled, it is finite because there is only so much of it that can be mined out of the ground. Currency on the hand was designed to leach the wealth of the people. What right does the federal reserve have to print "value" from NOTHING and then expect your average person to toil over it. Each time the fed does this it buys the debt of the government in the form of bonds (effectively putting the nation into more debt,) it steals from both of our pockets in the form of reduced purchasing power for the same amount of work. Have you not noticed the national debt keep rising to stratospheric levels? How on earth is this a stable system? Our monetary system is a lie and is completely immoral. We must go back to sound and honest money principles. I believe wholeheartedly that JM Keynes was wrong and that they should be teaching a lot more Hayek and Mises in the Universities. Just my opinion. ~Hratch
Thanks! Likewise!
Hey a Hayek guy! I respect that. We're not gunna find much common ground though hahaha.
Money supply can be controlled, that's what the feds for. See, I feel like your coming at this with emotion and see a conspiracy where there isnt. It was not "designed to leach wealth," nor is it acting morally superior. In comparison to the gold standard it is the stable, logical approach. Of course they will take measures that will occasionally lead to inflation, or increased interest rates that makes debt more expensive, but thats the price you pay for control, and that control, I believe, is key to stability and proper governance.
I'd rather have control of inflation than let jesus take the wheel ! The federal reserve isn't printing money for some spiteful reason, it's doing it for monetary stability.
Just so were clear im from Canada, but our central bank is the same in practice haha.
"Each time the fed does this it buys the debt of the government in the form of bonds (effectively putting the nation into more debt)) it steals from both of our pockets in the form of reduced purchasing power for the same amount of work" - I understand what you mean by a reduced purchasing power, but there is no increase in debt when doing this. Just increased money supply, leading to reduced purchasing power like you said.
The US national debt is simply a government issue, the only effect the fed would have on it would be through interest rates, and interest rates will only fluctuate according to the economy, not debt. It doesn't really matter too much though, your nation's debt seem huge in absolute terms, but in terms of debt to GDP ratio, you're not in horrible shape.
-Brownz