RM Hill writes:
I know what I mean when I use those words, but I’m not sure of your definition. When a man won’t define his terms in a debate, you can be sure he is wanting to hide from the real center of the issue..
Yes, Robert, the Federal Reserve is a grand Socialist idea…and the rich just cannot stomach the fiat money system and the Fed because it eats into their wealth and elevates the poor and the middle class. Well done! You just can’t make this stuff up folks.
Interestingly enough, the Fed actually wants there to be more inflation… and our somewhat dismayed that there isn’t yet. Now think about this for a moment…. price inflation through monetary inflation amounts to a tax, a tax that effects the poor far more than the rich. Lower and fixed income folks cannot make ends meet now, and you think inflation is good?
Most rich people do not care anything about the Fed one way or the other. The Fed always works for the rich and only for the rich and nobody else. Alan Greenspan described himself as a Libertarian and was a lifelong follower of Ayn Rand. Under Greenspan, the Fed engaged in a long process that was proven to be intended to reduce the income of the US middle class by 1/3 and transfer all of that money to the rich. The Fed is usually all about class war – take from the poor and the middle class and give to the rich.
Well, anyway, that is what Libertarianism will always boil down to anyway because if you leave a relatively free market alone long enough, the rich get richer and the poor get poorer until eventually you end up like the conservative dream state of El Salvador, where 14 families owned almost all of the arable land in the country, 2% of the population was rich, 8% was middle class and beaten down and 90% was poor, usually without work, often without food, decent shelter or even shoes on their feet.
The only thing that prevents this natural state of affairs from occurring is the intervention of a state.
Some conservatives hate the Fed and they want to abolish it. These people are frankly lunatics who belong in an insane asylum. These same wingnuts also usually want to go back on the gold standard. Nearly every significant economist in the US agrees that elimination of the Fed and going back on the gold standard would be horrible ideas.
The Fed generally is paranoid about inflation, at least it was under Greenspan. This is because Greenspan ran the Fed for the rich and only for the rich. It is the rich who are truly paranoid about inflation. Working people know that giving workers a raise is somewhat inflationary but they do not care. Inflation is devastating to the idle rich (most of them are in fact idle) because the idle rich sit on their asses all day and collect rents from land, real estate, stocks, bonds and other investments.
Inflation is very low now. In fact, we are actually risking deflation. The Fed is not worried about inflation right now so it has been printing money like crazy to stimulate the economy, but the economy is so dead that even all this money printing is not causing inflation.
It has been proven that normal inflation effects the rich worst of all the workers least, as workers often get cost of living raises. Since most workers would love a raise, and giving workers raises has been proven to be inflationary, why would the average worker give too figs about inflation? Fixed income people usually get cost of living raises if inflation occurs.
Why are you worried inflation suddenly? There has been no significant inflation in the US in 20-30 years. What’s the worry?
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