So I have this one friend from HS that's always posting this conspiracy level shit regarding the Fed on his Facebook. For the life of me, I have no fucking clue what he's talking about. Can someone please shed some light on this shit for me?
they were assassinated for opposing the fed, is the implication
The main points are is that the FED is controlled by private interest and businesses, not by the congress even though the FED officially is audited by them.
>>1132702
Well first off it's important to know that the Fed was founded in 1913 which is half a century after the death of Abraham Lincoln.
So whoever posted that probably doesn't know a lot more about the Fed than you.
>>1132711
This. Lincoln was assassinated 50 years before the fed was established.
>>1132710
How can the fed be controlled by private interests though? I was under the impression that it's a government institution
They're referring to the Ron Paul/gold standard meme (https://youtu.be/tGk5ioEXlIM)
Link him to this where his boy gets btfo https://youtu.be/jEmKIRqz9AI
>>1132727
The FED member of boards are appointed for 14 years, and once they're there they can make independent decisions, much like the supreme court.
Also private banks have stakes in the FED
All in all in this system it'd be extremely easy to influence the monetary system by the private sector.
>>1132727
>I was under the impression that it's a government institution
Nope! That's what they want you to think
>>1132727
>I was under the impression that it's a government institution
No it isn't since the Fed is supposed to be independent and not simply a government controlled printing press. History has shown that governments tend to fuck things up pretty badly if they can simply print money to pay off their debts/wage war.
Of course if the Fed isn't directly govenment operated your gonna have people like your facebook friend bitch about how it's run by the ILLUMINATI/REPTILIANS and BIG BANKS.
If you really want to understand how the fed functions from a non-conspiracytard perspective try reading "Secrets of the Temple: How the Federal Reserve Runs the Country", its over 700 hundred pages if you have the patience
>>1132758
Federal debts and borrowing wouldn't exist if the government was directly financing their expenditure by printing cash. There's no real difference between directly issuing currency or bonds besides creating interest payments to private interests.
Fed policy today favours creditor interests and intently follows monetary policies which create unemployement to keep wages low since the public has little say in what goes on.
>>1132732
That first video gave me cancer. Looking at the youtube comments of that film, it seems there is a fundamental misunderstanding of how the federal reserve works.
>>1132776
>keep wages low
So is it safe to say that the disparity between what a CEO makes vs what the bottom level labor makes is unfairly skewed and it's not simply a result of supply/demand?
Because last time I got hit with that argument I got hit with "hurr durr companies pay what they can
>>1132776
>Fed policy today favours creditor interests and intently follows monetary policies which create unemployement to keep wages low
How exactly does an unprecedented multi-year period of free money and 0% interest rates serve the evil NWO goal of high unemployment?
>>1132776
My grandfather wrote that book.
>>1132825
low-unemployment = high-prices is monetarist orthodoxy so to fight inflation you need to generate unemployment.
Alan Greenspan himself said in front of congress in 1997 that the exceptional performance of the 90s was due to "a heightened sense of job insecurity" among workers "and, as a consequence, subdued wages."
http://prospect.org/article/republic-central-banker
>>1132834
All that "free money" doesn't go into real productive investments creating employment for workers but into inflating asset values and transforming the economy into a pre-industrial usury-and-rent economy.
>>1132837
>my mother's husband's mother's husband wrote that book
ftfy
>>1132847
My wife's son wrote that book
>>1132847
I'm serious.
The Fed didn't even exist in Lincoln's time, that pic is dumb as fuck
>>1132896
but you don't seem to have much insight on the matter at hand?
>>1132905
My grandfather wrote that book.
>>1132822
or maybe you're wrong?
I highly suggest you read this book.
>pic related
>>1132906
Post proof.
>>1133243
How? He wrote an inscription to me "FROM GRANDPA WILLIAM GREIDER" but you'll just say I wrote that.
>>1132711
>the Fed was founded in 1913
That's what they want you to think.
>>1132707
>lincoln
>assasinated for opposing the federation
Good lord
>>1132702
go to the wiki on money supply and start reading
>>1133156
I'm good man. I try to stay away from conspiracy theories.
>>1135092
lol
>knows its a conspiracy without reading the book
nice one reddit
>>1135092
it is by far the most eye opening book i have ever read
>>1135092
>looks at author
Knows it is written by a conspiracy theorist who believes HIV and AIDS do not exist.
I also have a copy of the book because it was supplemental reading for a class I took. You can find it online for free.
The biggest problem I have are the chapters on money creation. The book incorrectly assumes commercial banks do not have to hold a required amount of their reserves. They do, it is it is around 10% and it is the reserve requirement.
Next, he states that the US prints Treasury securities "out of thin air". He is correct. Many organization have ability to fund through debt(government or corporations) can issue Bonds. The problem is he assumes that bonds need to be backed up by some sort of commodity(Gold). The fact is bonds are valued on their risk. US government bonds are literally the safest asset you can invest in on earth. The reason is that we are a country that will likely never default on our debt.
This leads to the problem on money creation. The money supply in the US is in many ways controlled by the buying and selling of treasuries. The federal reserve can sell US treasuries in large amounts to decrease money supply. The Fed can also do the opposite and use reserves to increase money supply by buying treasuries. In both of these cases we did not print any money we just moved around reserves.
I hope you understand why I personally do not take it very seriously.
>>1135352
whatever, he is an author who wrote a extremely lengthy book on the federal reserve and why central banking is the biggest scam in humanity (which it is).
and u r just anon,
so i choose to trust the book way more
None of you fucks have mentioned jews yet..Fed is always led by a jew...and the jews own most of global banking
Do we really need a federal reserve? Am I wrong in believing that the Fed is the reason for every financial crisis due to their easy money and low interest rates? Doesn't this always cause bubbles and a miss allocation of resources away from real production.
I don't want to be some conspiracy nut, but what is wrong about letting the market run freely like Adam Smith's idea of the invisable hand?
>>1135409
You shouldn't trust anyone, ever. Which is what always baffles me about conspiracytards. You're so skeptical of anything mainstream, the barrier for dismissal of any conventional wisdom is incredibly low. But you're simultaneously hyper-receptive to any contrasting theories. You actively seek out fringe ideas and then latch onto them like they're more "logical" than the mainstream ideas that you don't even attempt to fully understand.
>>1135618
I kinda agree with this... but a pure free banking system would allow private bankers to create bank notes out of thin air in any magnitude they want without any connection to the real economy or increasing earnings potential. Money creation should be one of the most heavily regulated parts of the economy. The institutions that generate and distribute investment funds and the institutions that handle consumer credit should definitely be separated by law.
A lender of last resort allows unrecongized deprecation costs to accumulate as potential illiquidity throughout the entire economy. Forcing old firms to have to "write off" their past investments would make new firms more profitable.
>>1135618
Speaking of Smith this is what he had to say
>It is not by augmenting the capital of the country, but by rendering a greater part of that capital active and productive than would otherwise be so, that the most judicious operations of banking can increase the industry of the country. That part of his capital which a dealer is obliged to keep by him unemployed, and in ready money, for answering occasional demands, is so much dead stock, which, so long as it remains in this situation, produces nothing either to him or to his country. The judicious operations of banking enable him to convert this dead stock into active and productive stock; into materials to work upon, into tools to work with, and into provisions and subsistence to work for; into stock which produces something both to himself and to his country. The gold and silver money which circulates in any country, and by means of which the produce of its land and labour is annually circulated and distributed to the proper consumers, is, in the same manner as the ready money of the dealer, all dead stock. It is a very valuable part of the capital of the country, which produces nothing to the country. The judicious operations of banking, by substituting paper in the room of a great part of this gold and silver, enables the country to convert a great part of this dead stock into active and productive stock; into stock which produces something to the country. The gold and silver money which circulates in any country may very properly be compared to a highway, which, while it circulates and carries to market all the grass and corn of the country, produces itself not a single pile of either. The judicious operations of banking, by providing, if I may be allowed so violent a metaphor, a sort of waggon-way through the air, enable the country to convert, as it were, a great part of its highways into good pastures and corn-fields, and thereby to increase very considerably the annual produce of its land and labour.
>>1135769
>The commerce and industry of the country, however, it must be acknowledged, though they may be somewhat augmented, cannot be altogether so secure when they are thus, as it were, suspended upon the Daedalian wings of paper money as when they travel about upon the solid ground of gold and silver. Over and above the accidents to which they are exposed from the unskillfulness of the conductors of this paper money, they are liable to several others, from which no prudence or skill of those conductors can guard them.
Smith was still a bit of a goldbug [it was 1776 so he had an excuse unlike goldbugs today who should know better]... but you can just replace where he says "as when they travel about upon the solid ground of gold and silver" with any other [current or future] commodity [there's noting special about gold or silver]. The point of paper money is its ability to increase the productive output to pay itself off.
>>1135432
not /pol/ but seriously this
>>1135790
Here is the whole picture:
>Regardless of when, where, who, there are people with a history of large sums of money. How they initially got it isnt important, however it sheds light on their personalities. See Rothchild and his 4 sons. Rothchild after Waterloo.
>when governments have deficits, they issue bonds. Said bonds are bought by investment corporations run by these rich people.
>there is interest on bonds. The larger the debt, the larger the interest. Governments tax people to get money to pay interest. In sum, people work hard to pay taxes which goes to pay interest for these bonds. Countries are milked like cows.
>countries must never ever be out of debt. Politicians spend money left and right (bailouts, humanitarian aid, etc) to keep debt high.
>for countries to keep aknowledging debt. There must be a threat. If they dont pay the debt, the investment babks will just overly fund their enemies with low interest. If there are no enemies, create one.
>fund both sides, milk them
>>1135618
A more moderate idea is Milton Friedman's idea that the Reserve should be operated without human indecision and ideology, basically a printing press that prints out a certain amount of the current money supply every year without interruption or interference.
>>1135618
>Am I wrong in believing that the Fed is the reason for every financial crisis due to their easy money and low interest rates?
Yes you're fucking wrong. The US had much harsher and more frequent (like every 5 years) crises before the Federal Reserve Act. There have been times since then that the Fed has undoubtedly exacerbated certain recession, like the great depression, but those cases are always due to poor policy by the fed, not an inherent issue with the fed's mechanisms.
>>1135618
>Am I wrong in believing that the Fed is the reason for every financial crisis due to their easy money and low interest rates?
No, you're right. But there are many more factors to what the fed does. It is kinda like taking someone of a island who knows nothing about the civilized world and showing him a football game. Paul Warburg was a super genius who perfected the central banking scam.
Obviously you don't have to believe me, but you should at least do your own research into it.
>>1135432
Tru. If you read the protocols of the learned elders of Zion, u will realise the Jews are literally behind everything wrong with the world today.
>>1135669
I could say the same thing about mainstream retards who believe everything mainstream economists tell them, as well as the media. I still am right about the fed.
>>1135880
Arbitrarily pumping a magnitude of money out and handing it out to bankers is a horrible idea. If money isn't actually needed for productive investments it should not be created otherwise you will just inflate asset prices and shift more power to those holding them. You can't really remove human indecision and ideology from economics. Somebodies always gonna benefit and somebodies not from the policies of the fed, you could always just make it more transparent and accountable to the electorate and local banks more accountable to their communities.
>>1135939
J. P. Morgan and friends had to privately bail out wall street after the panic of 1907. That type of a system couldn't go on indefinitely if private capitalists had to pay to keep the system running every couple years so the fed came into existence to essentially privatize profits and socialize loses. You could just as easily implement legislation making it so that when a major corporation goes bankrupt but requires a bail out by the government to prevent a told melt-down it should be nationalized and restructured as a worker self-managed enterprise allowing the market valuation of its assets to shrink.
>>1134410
Laughed way harder than I should have
