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Land of Freedom
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Why does the Fed control interest rates? Should the market decide
Dec 5th, 2018 at 3:23pm
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Why does the Fed control interest rates? Should the market decide what rates are?
  

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Jeff
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Re: Why does the Fed control interest rates? Should the market decide
Reply #1 - Dec 5th, 2018 at 4:47pm
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Land of Freedom wrote on Dec 5th, 2018 at 3:23pm:
Why does the Fed control interest rates? Should the market decide what rates are?
The Fed controls interest rates because Congress likes an economy they control better than a free economy.

Market control of interest rates is one way markets are self regulating, which is why they work, because they are free of bureaucratic regulations and laws intended to help cronies get rich or stay in business etc. Artificially controlled interest rates remove necessary signals from financial markets, which results in market distortions. Market distortions can have bad results, especially in heavily regulated economies.
  
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The Opposition
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Re: Why does the Fed control interest rates? Should the market decide
Reply #2 - Dec 5th, 2018 at 9:34pm
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Land of Freedom wrote on Dec 5th, 2018 at 3:23pm:
Why does the Fed control interest rates? Should the market decide what rates are?


The Federal Reserve is a private business. Of course they can control their own product.

Consider it a ToS or Terms of Use on every dollar. There's no force involved.
  

This moral relativism of yours is exactly what lets government take this freedom, then that freedom, until we have lost them all.
-SnarkySack
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Re: Why does the Fed control interest rates? Should the market decide
Reply #3 - Dec 6th, 2018 at 8:46am
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The Opposition wrote on Dec 5th, 2018 at 9:34pm:
The Federal Reserve is a private business.
No it's not.

From Wiki-

"The Federal Reserve Act (ch. 6, 38 Stat. 251, enacted December 23, 1913, 12 U.S.C. §§ 221 to 522) is an Act of Congress that created the Federal Reserve System (the central banking system of the United States), and which created the authority to issue Federal Reserve Notes (commonly known as the US Dollar) as legal tender. The Act was signed into law by President Woodrow Wilson."

https://en.wikipedia.org/wiki/Federal_Reserve_Act

The Fed is a creature of government, not a private business. Congress created it, and Congress can close it down.
  
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SkyChief
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Re: Why does the Fed control interest rates? Should the market decide
Reply #4 - Dec 6th, 2018 at 10:49am
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Jeff wrote on Dec 6th, 2018 at 8:46am:
The Fed is a creature of government, not a private business. Congress created it, and Congress can close it down.

Not arguing this, just want to clarify something:

There is no Federal oversight of the Federal Reserve. 

They are completely self-governing and immune from any remedial acts of Congress (other than a  disbandment).
  
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Jeff
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Re: Why does the Fed control interest rates? Should the market decide
Reply #5 - Dec 6th, 2018 at 4:08pm
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SkyChief wrote on Dec 6th, 2018 at 10:49am:
Not arguing this, just want to clarify something:

There is no Federal oversight of the Federal Reserve. 

They are completely self-governing and immune from any remedial acts of Congress (other than a  disbandment).
Congress can change the law that created the Fed  any time they want to. How many soldiers does the Fed control?

What if everybody pressured Congress to end the Fed?

OK, Nancy Pelosi can control things so that the Fed won't be eliminated, so we're screwed.

Is Pelosi actually aware that she will screw us all while the Obama's and Sander's and Biden's will get even richer?
« Last Edit: Dec 6th, 2018 at 5:34pm by Jeff »  
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Re: Why does the Fed control interest rates? Should the market decide
Reply #6 - Dec 6th, 2018 at 5:37pm
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SkyChief wrote on Dec 6th, 2018 at 10:49am:
There is no Federal oversight of the Federal Reserve. 

Talk like this has always blown my mind.

It's right in there with claims that bureaucratic rules  can't be eliminated unless the courts approve. Grin

In that matter, crappity smack the courts.
  
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The Opposition
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Re: Why does the Fed control interest rates? Should the market decide
Reply #7 - Dec 6th, 2018 at 8:38pm
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The Federal Reserve Act created a private business.

The Federal Reserve is not a branch of government.

If the Act gave permission to the Federal Reserve to print dollars, then it gave permission to do something everyone should have the right to do.
  

This moral relativism of yours is exactly what lets government take this freedom, then that freedom, until we have lost them all.
-SnarkySack
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SkyChief
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Re: Why does the Fed control interest rates? Should the market decide
Reply #8 - Dec 6th, 2018 at 10:34pm
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Jeff wrote on Dec 6th, 2018 at 5:37pm:
Talk like this has always blown my mind.

It's right in there with claims that bureaucratic rules  can't be eliminated unless the courts approve. Grin

In that matter, crappity smack the courts.

Sorry, Jeff....with a stroke of a pen, it [the Federal Reserve Bank] can be gone.

We're anxiously waiting for that magic stroke.... Grin .....  Smiley
  
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Land of Freedom
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Re: Why does the Fed control interest rates? Should the market decide
Reply #9 - Dec 6th, 2018 at 11:26pm
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The Opposition wrote on Dec 5th, 2018 at 9:34pm:
The Federal Reserve is a private business. Of course they can control their own product.

Consider it a ToS or Terms of Use on every dollar. There's no force involved.

Run by those picked by government. Fed Chairman. Thats not private.
  

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