Saturday, April 11, 2009

What did the US government pledge to the Federal Reserve as collateral for the Depression?

In 1936 Congress passed the Social Security system. You and I and all of our children were pledged as collateral on the debt of our government to the Federal Reserve.

What do you think about that?


Tom the Fed manipulating interest rates is also causing the boom and bust along with government intervention. You are correct about what the Fed suppose to do, but they are given WAY too much power. Their not even audited. The Fed has no business in a free market.

All depressions are artificially created since the inception of the Federal Reserve. Scary ain't it?

I 'know' Adam B is representative of the ignorant attitude most Americans have about the Federal Reserve.

As for your question, America was officially sold out to central bankers in 1913, nobody questions whats going on, and that doesn't surprise me at all.

I think this "question" doesn't make even a little bit of sense.

I think that is an incoherent thought. Social security (awful program) was brought about as a government program as a way to help people living on the edge to give them a little something extra to live off of in case they needed just a little bit more help in retirement or when families are facing tough times.

The Fed was established to regulate banks, act as a last resort lender to them, and to control interest rates. The Fed appoints the chairman to a 14 yr term I believe in order to ensure that he makes the best decision regarding policy without having to worry about political scrutiny from that. The Fed attempts to control the economy somewhat so we do not have huge swings in the economy like China does, or any Asian country for that matter. When times are good the Fed will raise interest rates in order to ensure that the growth can be longer sustained and to combat inflation. When times are bad the Fed will lower interest rates as a way of getting more money into the system and to encourage borrowing in order to get the economy to rebound. The Fed does this through the Bond market.

The Fed does not cause recessions or depressions. What causes recessions or depressions is bad economic policy put in place by politicians. Look what happened in the 70's when politicians tried to exploit the Phillips Curve, and recently when politicians believed that it is a merit for everyone to own a house.

I think our "value" is unprecedented!!

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