Are Democrats and Republicans happy now that they have let the Federal Reserve destroy the dollar?
Libertarians told you this would happen. We told you why it would happen. You called us "fear-mongers" and "extremists".
Will you admit that we understand Economics better than you do?
- Anonymous1 decade agoFavorite Answer
You are right...
We have been a sorry bunch of citizens to allow the extremists of the Far Right and Far Left to destroy the prosperity of our nation.
I've never been a "Card Carrying" member of a political party because I see too much hypocrisy and retardation in both...
I can only hope that next election, we let the "Big 2" take the term off and start with LUCID people that are not seeing the world in terms of "Black & White" - "Liberal Vs. Conservative".
I, personally, think we should kick everyone in office out and get a WHOLE NEW BATCH of people in to give everything a new perspective and, hopefully, fix this broken system of ours.
What is sad is that I am STILL hearing people putting the 'blame' for EVERYTHING happening right now on George W. Bush's shoulders...
Obama has negated my usual statement of "One man can't do that much damage by himself" since he started throwing money at this problem and driving our national debt to reaches never before seen... But it is still pretty true...
This recession was the result of 2 primary things, well... 3 things...
1. Credit Default Swaps.
2. The Housing Bubble.
3.The speculation market driving the cost of petroleum instead of Supply/Demand.
The Housing Redevelopment Act started in the Carter Administration but was tweaked in 1995 by Bill Clinton and the Democratically Controlled Congress. It changed the methods used by banks to determine loan eligibility and started a chain reaction of greed and stupidity that allowed the Banks to snow-ball the situation in to a HORRIBLE mess.
Then you take the fact that the Clinton Administration made Credit Default Swaps legal again and you create, to use a horrible term, a "Perfect Storm" of the elements that drove us in to this horrible recession.
Then you take the Speculation Market driving up the cost of Petroleum, which is used in almost every consumer good and also TRANSPORTS those goods to market and you drive up the price of goods and services while banks fail, the housing industry goes bust, and we transition in to a new presidency.
This, almost, seems planned for all of these things to happen simultaneously...
Then you take the bickering of the two parties, making EVERYTHING that our government tried to do to stop the snow-ball effect stagnate in debate and finger-pointing and you end up with what we have right now.
It is VERY VERY sad that we have allowed history to repeat itself and cause a repeat of the Recession of 1907.
It was right there, for all to see, if we would have taken the time to STOP SHOUTING INSULTS across the isle and look at the past as a guidebook to the future.
It is pathetic how apathetic and ignorant our populous has become.
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☀20/20 - Politically Incorrect Guide To Politics - 1 of 6
☀20/20 - Politically Incorrect Guide To Politics - Pt. 2 of 6
(Find the rest on your own)
☀Community Reinvestment Act
Economic Reality always follows Economic Policy by 8-12 years. What we're seeing now is the failure of the Subprime Mortgage Market (AKA Subprime Mortgage Crisis), which was a direct result of the Community Reinvestment Act of 1995 (CRA1995) that was signed into law by President Bill Clinton.
CRA1995 forced banks to use a point based system to determine the eligibility of applicants for home loans, with the three biggest points values coming from their area of residence, their race, and their income.
The Community Reinvestment Act (or CRA, Pub.L. 95-128, title VIII, 91 Stat. 1147, 12 U.S.C. § 2901 et seq.) is a United States federal law designed to encourage commercial banks and savings associations to meet the needs of borrowers in all segments of their communities, including low- and moderate-income neighborhoods. The Act was intended to reduce discriminatory credit practices against such neighborhoods, a practice known as redlining. The Act requires the appropriate federal financial supervisory agencies to encourage regulated financial institutions to meet the credit needs of the local communities in which they are chartered, consistent with safe and sound operation. (See full text of Act and current regulations.) To enforce the statute, federal regulatory agencies examine banking institutions for CRA compliance, and take this information into consideration when approving applications for new bank branches or for mergers or acquisitions.
☀Credit Default Swaps
60 Minutes - Credit Default Swaps <- WATCH THIS VIDEO!!!
☀The Bet That Blew Up Wall Street:
Steve Kroft On Credit Default Swaps And Their Central Role In The Unfolding Economic Crisis Oct. 26, 2008
☀The Price Of Oil
The historic swings in oil prices last year were the result of financial speculation from Wall Street and not supply and demand. Steve Kroft investigates. January 12, 2009
http://www.cbsnews.com/video/watch/?id=4713382n <-Go To The Website And Watch The Video!
☀Did Speculation Fuel Oil Price Swings?
60 Minutes: Speculation Affected Oil Price Swings More Than Supply And Demand Jan. 11, 2009
- Anonymous4 years ago
The reason is that we understand that our success is in our own hands. Democrats have bought into the "victim hood" model. This causes them to be envious and angry that others are more successful. But Republicans realize that no matter where you start in a Free Enterprise, Capitalist System, with a bit of hard work, dedication and good decision making you can greatly improved your lot in life. Republicans realize that this is not a zero sum game. Capitalism, left to its own devices, is a wealth generator. While Democrats believe that if someone gets two pieces of the pie someone else must be going hungry. Republicans know that the size of the pie just keeps growing (note the GDP over the last 100 years). Democrats covet the rich. Republicans seek to become rich. Republicans realize that the wealthy drive the economic machinery that produces prosperity and a higher standard of living. If you believe you are a victim of forces beyond your control you are unhappy. If you believe you are the master of your own destiny, you are happy. Thus, Republicans are happy. *
- lil' autarchLv 61 decade ago
The Austrian economists have been saying this for decades.
For an accurate treatment of the misconceptions about what happened when the USA departed from the classical gold standard, try this:
Most people do not understand that artificial currency inflation is an ongoing tax, a depletion of buying power, on the middle and lower classes. The more you get educated about this, the less faith you will have in the standard arguments put forth (as one answer here does) that the fed "helps stabilize" our economy.
Sure it does -- when the instability is introduced by the same bunch of rascals.
- Uncle PennybagsLv 71 decade ago
I'm a Conservative Libertarian, but I've always believed that this nonsense about the Fed was drastically over rated.
Our country has experienced many recessions, depressions and panics throughout it's existence, many of them prior to the existence of the Fed. I see the Fed as a calming force when it implements the right policies for the times.
Will there be a price to be paid for pumping lots of money into the system to prevent financial collapse? You bet there will. But I'll take that over the financial collapse any day.
Since you are into charts, why don't you chart the price of gold vs. inflation of the US Dollar over a long period of time.
The average price for gold during our last big recession of 1981-1982 was $447 per ounce. Factoring inflation on the dollar from then til now, Gold should be selling at $1,153 this year.
The US Dollar has held up better than Gold!Source(s): http://en.wikipedia.org/wiki/List_of_recessions_in... http://goldinfo.net/yearly.html http://www.westegg.com/inflation/
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- 1 decade ago
I think Thomas Jefferson said it first...
"I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."
3rd president of US (1743 - 1826)
For cripe`s sakes, you let private banks print your money then you borrow it at interest from them thus making the national debt literally impossible to pay off. There is not even enough gold to begin to cover it. You guys are screwed.
- 1 decade ago
well, ya it think they are pretty happy. I am a conservative, but i would have to agree the problem doesn't lye with just one party, they both played a disastrous roll in how the dollar is continuing to fall. Whatever happened to the gold/silver standard?
They are happy because they think it makes the other party look like the bad guys.
- 1 decade ago
They are happy, but we aren't. Their ultimate goal is to control population growth and killing grandma when she requires surgery.
- Anonymous1 decade ago
money is like electricity, same rules apply. the fed reserve should change its name to what it really is. NOT FEDERAL AT ALL
- marzmargs12Lv 61 decade ago
was this cos of Euro?