User Tag List

View Poll Results: Are you happy with the Federal Reserve system?

Voters
6. You may not vote on this poll
  • I love the Fed!

    1 16.67%
  • We shouldn't have to pay the Fed!

    1 16.67%
  • I don't really know how it works, but if it's worked for this long, it can't be that bad.

    1 16.67%
  • I don't really know how it works, but I find the current devaluation of the dollar troubling.

    2 33.33%
  • The Fed? I don't think this really pertains to me.

    1 16.67%
First 12345 Last

Results 21 to 30 of 44

  1. #21
    Lallygag Moderator Geoff's Avatar
    Join Date
    Apr 2007
    MBTI
    INXP
    Posts
    5,584

    Default

    I think it is an excellent idea to have a central bank that has an element of independence from the politicians. That's also how it works in the UK. It has worked well in both countries to encourage a more mature, balanced, approach to inflation and the economy, and stops politicians manipulating interest rates (to a long term detriment) every time there is an election.

  2. #22
    Senior Member Veneti's Avatar
    Join Date
    Aug 2007
    MBTI
    XNTX
    Posts
    264

    Default

    Quote Originally Posted by Geoff View Post
    I think it is an excellent idea to have a central bank that has an element of independence from the politicians. That's also how it works in the UK. It has worked well in both countries to encourage a more mature, balanced, approach to inflation and the economy, and stops politicians manipulating interest rates (to a long term detriment) every time there is an election.

    The Central bank is about as impartial in Britain as there really is sub 2% inflation.

    Its all a smokescreen. Seriously.

  3. #23
    Order Now! pure_mercury's Avatar
    Join Date
    Feb 2008
    MBTI
    ESFJ
    Posts
    6,946

    Default

    I am not actually an Austrian (nor am I an economist, although I was a Business Studies minor in school, and took Econ and read a lot of theory). But I am a libertarian, and it is interesting to read about liberty from the economic perspective. I like that there are theoretical underpinnings to Austrian economics, as I found that modern mainstream economics was far too reliant on equilibria and econometrics and all sorts of things that didn't get at what I felt the heart of the matter was, so to speak. I've read some Friedman, as well (in a Marx vs. Friedman compare/contrast in an Intellectual Heritage class, actually), and I would like to read more in depth into his quantity theories. The velocity of money interests me.
    Who wants to try a bottle of merc's "Extroversion Olive Oil?"

  4. #24
    Permabanned
    Join Date
    Apr 2007
    MBTI
    ExTJ
    Posts
    1,377

    Default

    Out of curiosity, is there any reason aside from tradition that gold must be the item used in a "gold standard"? (it seems that gems, silver, or some other hard to duplicate and expensive for its use items could be used to allow more "hard money" to exist if so needed and if hard money is found to be useful.)

  5. #25
    Senior Member Veneti's Avatar
    Join Date
    Aug 2007
    MBTI
    XNTX
    Posts
    264

    Default

    Quote Originally Posted by Zergling View Post
    Out of curiosity, is there any reason aside from tradition that gold must be the item used in a "gold standard"? (it seems that gems, silver, or some other hard to duplicate and expensive for its use items could be used to allow more "hard money" to exist if so needed and if hard money is found to be useful.)
    Instead of gold, the government could just fractions of land backed securities or anything with an intrinsic value.

    The problem with paper currency without backing is that it can be manipulated....

    Once we move away from paper almost completely... then the government can quite easily just pump the economy with units of value, I can't see how anyone will be able to see what they are up to.

  6. #26
    Order Now! pure_mercury's Avatar
    Join Date
    Feb 2008
    MBTI
    ESFJ
    Posts
    6,946

    Default

    Quote Originally Posted by Zergling View Post
    Out of curiosity, is there any reason aside from tradition that gold must be the item used in a "gold standard"? (it seems that gems, silver, or some other hard to duplicate and expensive for its use items could be used to allow more "hard money" to exist if so needed and if hard money is found to be useful.)
    Gold's use is usually traditional, but it's one of the more expensive precious metals that is widely mined. Platinum, palladium, etc. are much more rare. Silver has been used in the past. There are questions about how much specie there is and whether or not enough gold could be mined to keep up with economic growth. I am less well-versed in these matters.
    Who wants to try a bottle of merc's "Extroversion Olive Oil?"

  7. #27
    Senior Member Veneti's Avatar
    Join Date
    Aug 2007
    MBTI
    XNTX
    Posts
    264

    Default

    Quote Originally Posted by pure_mercury View Post
    I am not actually an Austrian (nor am I an economist, although I was a Business Studies minor in school, and took Econ and read a lot of theory). But I am a libertarian, and it is interesting to read about liberty from the economic perspective. I like that there are theoretical underpinnings to Austrian economics, as I found that modern mainstream economics was far too reliant on equilibria and econometrics and all sorts of things that didn't get at what I felt the heart of the matter was, so to speak. I've read some Friedman, as well (in a Marx vs. Friedman compare/contrast in an Intellectual Heritage class, actually), and I would like to read more in depth into his quantity theories. The velocity of money interests me.

    Biggest problem with economics is that it is full of math orientated people. Its exactly the same in financial markets with math orientated people doing the whole "chartist" type approach to investing when they should really be looking at and understanding the fundamentals. Look at warren buffet, he looks at the underlying cash flows and not the massaged profit and loss figures in companies he invests in.

    On a nation scale, look at China making 25year deals for resource supplies from many countries while the US lives for today trying to maximise short run shareholder value.

    The worst thing ever dreamed up was to pay senior executives bonuses for increasing shareholder value as a function of stock price... they've all just taken risky positions and tried to get that bonus before it all caves in and they scurry off to another company in the interim.

  8. #28
    Order Now! pure_mercury's Avatar
    Join Date
    Feb 2008
    MBTI
    ESFJ
    Posts
    6,946

    Default

    Quote Originally Posted by Veneti View Post
    Biggest problem with economics is that it is full of math orientated people. Its exactly the same in financial markets with math orientated people doing the whole "chartist" type approach to investing when they should really be looking at and understanding the fundamentals. Look at warren buffet, he looks at the underlying cash flows and not the massaged profit and loss figures in companies he invests in.

    On a nation scale, look at China making 25year deals for resource supplies from many countries while the US lives for today trying to maximise short run shareholder value.

    The worst thing ever dreamed up was to pay senior executives bonuses for increasing shareholder value as a function of stock price... they've all just taken risky positions and tried to get that bonus before it all caves in and they scurry off to another company in the interim.
    I'd combat that problem by keeping the number of shares in the company stock in escrow, as it were, until 5 years after an executive has been with the company. As in, they'd get their stock options, but would not be permitted to sell for at least 5 years.
    Who wants to try a bottle of merc's "Extroversion Olive Oil?"

  9. #29
    Senior Member Veneti's Avatar
    Join Date
    Aug 2007
    MBTI
    XNTX
    Posts
    264

    Default

    Quote Originally Posted by pure_mercury View Post
    I'd combat that problem by keeping the number of shares in the company stock in escrow, as it were, until 5 years after an executive has been with the company. As in, they'd get their stock options, but would not be permitted to sell for at least 5 years.
    Take funds management for instance (where everyones pensions are tied up in), if your fund isn't in the top 25% then investment advisors won't even recommend it to their clients. SO, they take on more and more risk (and is in the case of the current market they find ways to hide that risk - securitisation etc) while they strain to get that magic bonus.

    As for 5 years... I think it takes longer than 5 years to really and fundamentally change a company. Biggest problem is that the people devising remuneration bonus policies are nowhere as smart as those subject to them... they'll always get fleeced.

    The biggest lie in finance is what you learn on the first day of a finance degree... "That the purpose of a listed company is to increase the value of stockholders"... It should read, "The purpose of a listed company is to provide the founders with an exit strategy upon which it becomes a game of cat and mouse between stockholders and senior exec's on who gets any value created."

  10. #30
    Furry Critter with Claws Kiddo's Avatar
    Join Date
    Sep 2007
    MBTI
    OMNi
    Posts
    2,790

    Default

    Quote Originally Posted by pure_mercury View Post
    Your conspiracy theory is even more ridiculous. Please do not slander an entire movement based on nothing but wild assertions.
    Hey, if the conservatives can do it with gays then I can do it with Libertarians. To each his own prejudice.
    Quote Originally Posted by Silently Honest View Post
    OMNi: Wisdom at the cost of Sanity.

Similar Threads

  1. Who here will stand with Rand against the Federal Reserve?
    By Beorn in forum Politics, History, and Current Events
    Replies: 5
    Last Post: 10-25-2013, 04:19 PM
  2. The federal income tax is 100 years old.
    By Magic Poriferan in forum Politics, History, and Current Events
    Replies: 31
    Last Post: 02-23-2013, 07:40 PM
  3. Balance the Federal Budget November 2012
    By BAJ in forum Politics, History, and Current Events
    Replies: 15
    Last Post: 12-20-2012, 05:10 PM
  4. The Fudjack-Dinkelaker Poll result
    By Mal12345 in forum Myers-Briggs and Jungian Cognitive Functions
    Replies: 0
    Last Post: 04-22-2011, 01:54 PM
  5. The Traditional Values Poll
    By Kiddo in forum Philosophy and Spirituality
    Replies: 229
    Last Post: 12-24-2007, 07:10 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
Single Sign On provided by vBSSO