NEW YORK (CNNMoney) - The Federal Reserve. It's the one institution almost every Republican presidential hopeful loves to hate.
And during the latest CNN debate, the candidates came to play, attacking the central bank with rhetorical broadsides usually reserved for enemies of the state.
Every last one of these "Candidates for the Looneys" are in Hot Waters!!! Teaparty is Americas Demise!! Vote them "Gone". Middleclass Black and white Americans,especially Women! Their plan is to "Strip your rights all together! Children and teachers,will hit an all time LOW!! Be smart?? The Teaparty is GOP! Scary!!!!
none of these is worth talking....o.k,
Despite having a graduate b-school degree from one of those high falutin`, liberal, snob universities, I must admit, I`ve not taken the time to dissect the GOP arguments against the FED.
RonvPaul, OK, I know he`s the cheerleader, and he can probably at least explain his position in a cogent manner. But the other 7?, they are just uninformed lackeys repeating a talking point.[MB does this an awful lot.]
As near as I`ve paid attentiin, Paul wants us on the "Gold Standard" so I suspect he listened to Glenn Beck`s commercials, bought gold, and now wants to further inflate its value.
I suppose yo go back to the GS, the US would take the sum dollar value of all its debts & off-balance sheet [including printed money] obligations and divide those by the number of ounces of gold the Treasury holds – thereby setting the "true price" per oz.
I suspect the net result would be that gold would sky rocket in price and anyone holding it would see big gains.
But, why gold, why not silver standard, or copper? Heck why not a bull semen standard instead?
I find it so ironic to hear conservatives and right wingers criticizing the Federal Reserve. Anyone who doesn't know the history behind the Fed should do their homework. It was created by a group of private individuals, who just happened to be very wealthy and owned banks, and a group of influential DC politicians. These bankers were so wealthy, they represented over 25% of the wealth on the *entire* planet at the time.
Do your homework. Understand that it was created at time when the value of currency could not always be guaranteed, which caused banks to fail. Banks needed a centralized bank they could borrow against, to safe guard against depositers making a run on withdrawals, wiping out the banks assets. Banks could borrow cash and remain solvent and functioning.
The Fed was designed to be the backstop for the banking system, and it was created by the world's richest bankers to protect the world's richest banks, which they naturally owned. If this sounds like it was designed to provide bailouts, then you are probably correct. The Fed was supposed be the check and balance on the money supply, meaning actual cash in circulation. As a result, the Fed balances its' books in exactly the opposite way in which a bank would. The Fed is backed up by your US tax dollars, which it uses to make loans directly to banks that return interest.
So, if Republicans are criticizing something designed to help and protect their rich banking friends, what is it that they are really up to? As long as the Fed exists, we will always have the ability to bail someone out. If you get rid of the Fed, then takes away the ability to bail out banks. But, it also puts the smaller banks in a bind. Now, they must borrow from the larger banks.
They say the FED is inflationary, yet infaltion is at a all timw low. Call him tresanous, yet he's a patriot.....Let's not forget that Bernanke is a republican.
If it had not been for the actions of the FED during the 2008 crsis, the largest banks would have gone bankrupt by now (the way Lehman did) because of the stupid bets they had made on the housing market and credit derivatives while being under-capitalized. Goldman Sachs would no longer exist .... With the financial industry in tatters, the manufacturing and services sector would have been unable to fund themselves and bankruptcies would have skyrocketed. The closing of companies would have resulted in massive unemployment. ........ But don't ask GOPsters to recognize that. By definition a GOPster can't be intellectually honest. It is just beyond what they be.
By the way, Bernanke is an expert on the Great Depression. That is why he knew that he had to act very aggressively when the 2008 crisis unfolded.
Finally, to claim, as this perpetual and unrepentent LIAR of Gingrich did, that Bernanke is the most inflationary FED Chairman in history is such preposterous lie that it only takes a stupendous cretin like the average TPster to gobble that crap hook and line ..... Has anyone of these idiots actually bothered to check the rate of inflation lately?