What is this guy talking about

Discussion in 'Bullion Investing' started by JCB1983, Apr 29, 2012.

  1. fatima

    fatima Junior Member

    It's not just you. It always works this way in history after a currency collapse. Fiat only returns after the people forget their history and believe "it will be different this time". The framers of the US Constitution were adamant the new republic would only use gold and silver coin and there are several clauses in it to this effect. They knew all too well what fiat would do having lived through a failing economic system based on fiat colonial script and which the BofE was using to punish the colonials. Yet here we are now, people are in total disbelief, as demonstrated by comments right here in this forum, happy to vest themselves in money created by a few unelected men in a system that rewards the issuers for expanding a debt fueled consumption economy.

    It's the ultimate folly of fiat. Production ceases to matter because everyone starts to believe that an economy can only exist by consuming. Don't have money to consume? No matter, we will print some more.

    Anyone looking at it from the outside can immediately see what's wrong with that picture. Those inside will defend it at any cost and will deny there are any problems.
     
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  3. JCB1983

    JCB1983 Learning

  4. Cloudsweeper99

    Cloudsweeper99 Treasure Hunter

    It isn't the function of the Fed to make operational decisions for the member banks and their counterparties. The senior leadership of the financial institutions got themselves into trouble, and the Federal Government enabled them with the appropriate legislation. The central bank did their job. If they hadn't the situtation would no doubt have gotten worse than it did. As you alude, the Fed is only a tool. Their existence doesn't mean that irresponsible people won't hurt themselves.
     
  5. fatima

    fatima Junior Member

    The Federal Reserve has a vast hand & power to regulate what these banks are able to do. This is why it's called central banking.
     
  6. Cloudsweeper99

    Cloudsweeper99 Treasure Hunter

    The FR conducts examinations to assess risk management systems, financial condition, capital adequacy and compliance with laws and regulations. They share this responsibility with a number of other federal and state agencies. But they have no power to pass laws, decide what lines of business or products banks offer, who their customers are, or any of the other things you believe are part of your "vast powers" imaginary world. You're a pice of work, fatima.
     
  7. fatima

    fatima Junior Member

    I never said they had the power to pass laws. Go look up the definition of the word regulation. It doesn't mean law enforcement either. Every bank has to join the Federal Reserve by law and yet the rules for membership are those of the Federal Reserve and are not subject to review by congress or anyone else. The TBTF banks could have never enabled the real estate disaster without direct support of the Federal Reserve.

    If you think I am a piece of work, that is your issue as it has nothing to do with the discussion. It is you who claims the Federal Reserve is doing a fine job, so be it. BTW, I didn't say the US President bailed out the central bank which you shifted this discussion to. I said the President asked that the central banking system[/s] be bailed out. Next time try to get the context.
     
  8. Cloudsweeper99

    Cloudsweeper99 Treasure Hunter



    If you don't understand my posts, feel free to ignore them or ask for clarification instead of trying to turn my posts into your favorite topic. Everyone here knows by now that you are a one-trick-pony with a single answer to every question. But like the public figures who have done that, you discredit yourself the same way those who talked about "lock box," "flat tax," and "999," as solutions to every problem turned themselves into jokes.
     
  9. fatima

    fatima Junior Member

    Oh I completely understand them. That is why it's so sad.
     
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