End the Fed?

[ysabetwordsmith]

Here's an interesting article about some problems with how the economy works:

End the Fed
If you asked most people to name one of the most powerful, elusive, independent, and secretive arms of the federal government, they would probably reply with one of the nation’s law-enforcement or intelligence-gathering outfits, such as the FBI, CIA, NSA, or NRO.  Very few people would suggest that the real answer might be the U.S. Federal Reserve.  But when you look at the facts objectively, they make a startlingly compelling case.  For instance, when a Freedom of Information request is made, the FBI must either answer it or explain why they can’t, but the Fed doesn’t even have to publish the M3 money supply, which tells us the amount of dollars floating around in our economy.  The CIA, though secretive, must usually give some account to Congress of what they are doing with our money and why.  The Fed however, can loan half a trillion dollars to foreign banks without so much as telling Congress first that they are going to do it.

I agree that the Fed is functioning poorly. I would like to see a lot more transparency and logic in the economic system. However, I am extremely disinclined to scrap the Fed in favor of returning to a former system which we know also did not work well, which is why we replaced it. I would prefer to create something new, based on all our current knowledge, in hopes of getting something that will work better than previous failed attempts (including the Fed). For example, I would like to entertain models of a sustainable economy, not one that requires constant growth, because contant growth in a finite environment (such as a nation or a planet) inevitably leads to crash after crash due to hitting the limits of the environment. Many of the problems we're suffering now are limit-collision problems. In order to create a system that will be stable rather than spawning crashes, and one that will last instead of destroying resources faster than they are created, we really need to think outside the box.

Comments

[infonerd.livejournal.com]

There's a reason that the Fed can operate in the way it does - it's not actually an agency of the US government. It's privately owned. Check out the book Web of Debt (http://www.webofdebt.com/) for a very scary look at the way the system really works.

[ionotter.livejournal.com]

I was just going to say, the Fed is NOT a part of the US government. It's a private company, which, by the way, also has a controlling interest in the World Bank and the International Money Fund. When I say "controlling interest", I mean they own more than half of all the voting shares.

If ever there was a wizard behind the curtain, for the entire planet, it's the fed.

The could walk right up to the president and put a bullet in his head, right there in plain sight, and nobody would be able to do a bloody thing about it. Heck, they could do that to the Pope and get away with it.

Hmm...

[ysabetwordsmith.livejournal.com]

>>If ever there was a wizard behind the curtain, for the entire planet, it's the fed.<<

Sadly so. Oligarchies are very dangerous governments.

>>The could walk right up to the president and put a bullet in his head, right there in plain sight, and nobody would be able to do a bloody thing about it. Heck, they could do that to the Pope and get away with it.<<

I think it's not quite that bad yet; they do still have to obey the cardinal rule: don't get caught breaking the law. Or having sex that people frown upon. Pretty much anything else seems to be acceptable.

Also, I love your icon.

[fayanora.livejournal.com]

government is like fire - a useful tool, but a dangerous master.

[zeeth_kyrah]

If we can't think outside the box, we'll never be able to grow the box.

Which, depending on which metaphorical box we're talking about, can be a good or a bad thing.

[cissa.livejournal.com]

Very interesting and sobering, Thanks! I am becoming better-educated- which is scary but also worthwhile.

You're Welcome!

[ysabetwordsmith.livejournal.com]

I'm glad I could help, especially when I'm introducing people to new ideas rather than just preaching to the choir.

I must admit, though, being a student of history is frustrating and alarming. It's much easier to spot disasters coming than it is to convince people to do something about them. And that hasn't changed in the last 50,000+ years.