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Great article comparing the decline of Roman coins to US coins
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<p>[QUOTE="johnmilton, post: 7824163, member: 101855"]The idea of the U.S. Government selling bonds to the Federal Reserve to create money to fund its projects is a new one. In the past the Government sold U.S. bonds and T-bills to private entities to raise money.</p><p><br /></p><p>Done in moderation, that is a sound policy. The Federal Reserve bought and sold those securities through its open market operations to regulate the money supply. It did not act in the way it does now.</p><p><br /></p><p>The current system of selling bonds to the Fed is a road to ruin in my opinion. It results in uncontrolled increases in the money supply which will lead to massive inflation. History has taught us that, but some people never learn or just ignore the lessons history has to teach us.</p><p><br /></p><p>The Federal Reserve was not created to operate this way. When I was taking a money and banking economics course in undergraduate school in the late 1960s, the professor, who was advocate of Keynesian economic theory, laid out the sale of bonds to the Fed scenario. He said that it had not and should not ever happen. He would be turning in his grave if he knew what is happening now.</p><p><br /></p><p>All advanced countries need a central bank to regulate their currency. This has been proven time and time again. If you will want an example of how an economic system can be made unstable by the alternative, study the history of the United States before the Civil War. Abraham Lincoln started the National Bank System, and the monetary system grew from there until the Federal Reserve was formed circa 1913.</p><p><br /></p><p>You make a lot of valid arguments about instances when the Federal Reserve enacted the wrong policies, but ague that it should not exist is folly.[/QUOTE]</p><p><br /></p>
[QUOTE="johnmilton, post: 7824163, member: 101855"]The idea of the U.S. Government selling bonds to the Federal Reserve to create money to fund its projects is a new one. In the past the Government sold U.S. bonds and T-bills to private entities to raise money. Done in moderation, that is a sound policy. The Federal Reserve bought and sold those securities through its open market operations to regulate the money supply. It did not act in the way it does now. The current system of selling bonds to the Fed is a road to ruin in my opinion. It results in uncontrolled increases in the money supply which will lead to massive inflation. History has taught us that, but some people never learn or just ignore the lessons history has to teach us. The Federal Reserve was not created to operate this way. When I was taking a money and banking economics course in undergraduate school in the late 1960s, the professor, who was advocate of Keynesian economic theory, laid out the sale of bonds to the Fed scenario. He said that it had not and should not ever happen. He would be turning in his grave if he knew what is happening now. All advanced countries need a central bank to regulate their currency. This has been proven time and time again. If you will want an example of how an economic system can be made unstable by the alternative, study the history of the United States before the Civil War. Abraham Lincoln started the National Bank System, and the monetary system grew from there until the Federal Reserve was formed circa 1913. You make a lot of valid arguments about instances when the Federal Reserve enacted the wrong policies, but ague that it should not exist is folly.[/QUOTE]
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Great article comparing the decline of Roman coins to US coins
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