Why I don't take anti-Federal Reserve propaganda seriously
Post Reply
 
Thread Rating:
  • 0 Votes - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
05-04-2012, 08:51 PM
Why I don't take anti-Federal Reserve propaganda seriously
One, the people who spread these wild claims say demonstrably wrong things;

For example:

The Fed never gets audited, except that it does, regularly and in several different ways. For an example:

http://www.federalreserve.gov/monetarypo...mt2011.pdf


The Fed keeps the interest from the Treasury bonds it buys, except that by law it has to reimburse most of its earnings back to the Treasury, and it tells us how much:

http://www.federalreserve.gov/newsevents...10110a.htm

I could go on, but you've probably heard similar nonsensical, checkable assertions from people who should know better. No doubt they have acted upon the ignorance and urban legends about money promoted by "Austrian economists."

And two, the Fed's way of doing things, which has a theoretical justification called Chartalism or Modern Monetary Theory, has some interesting arguments in its favor:


SEVEN DEADLY INNOCENT FRAUDS OF ECONOMIC POLICY
WARREN MOSLER

http://moslereconomics.com/wp-content/po...s/7DIF.pdf


Basically Chartalism holds that the state creates money by creating the need for it through taxation. Taxes serve as an economic regulating mechanism instead of a source of founds for the government. Mosler gives the example of a British colony in Africa some decades back, where the colonial government wanted to hire the natives to grow certain crops, but the natives wouldn't take the jobs. So the government levied a tax on the natives' huts which they had to pay with British coins. What do you know, the natives then took the farm jobs to earn the coins to pay the tax. Our Federal Reserve Notes work in basically the same way, and Mosler points out counterintuitive consequences, for example, that deficit spending doesn't deplete savings, but instead creates them, an empirical fact based on straightforward accounting, or so Mosler argues. You should read it and decide for yourself.

In other words, don't take the Fed-hating cranks' assertions at face value without (1) investigating them, and (2) seeing what the other side has to say in defense of its policies.
Find all posts by this user
Like Post Quote this message in a reply
[+] 1 user Likes advancedatheist's post
Post Reply

Messages In This Thread
Why I don't take anti-Federal Reserve propaganda seriously - advancedatheist - 05-04-2012 08:51 PM

Possibly Related Threads...
Thread: Author Replies: Views: Last Post
  Anti-Vaccine argument that I have never heard before Punk Pumpkin 11 314 26-02-2014 07:54 PM
Last Post: Chas
  Anti-vaccination djkamilo 64 2,321 07-02-2014 01:33 PM
Last Post: jockmcdock
  "Anti- vaccine" Chrisinfp 12 661 22-09-2013 09:21 PM
Last Post: evenheathen
  Anti-anti-GMO rant... houseofcantor 25 2,462 30-06-2013 10:23 PM
Last Post: NoahsFarce
  ANTI-CHRIST, ILLUMINANTS TAKING OVER GuiltyAngel 23 1,581 11-04-2013 06:50 PM
Last Post: Revenant77x
  The anti-science on the political left and right. closet.atheist 5 444 12-12-2012 09:33 AM
Last Post: Vosur
Forum Jump: