Obama wants to INCREASE the Federal Reserve's power?

Discussion in 'Politics, Religion, Social Issues' started by fivepoint, Jun 18, 2009.

  1. fivepoint macrumors 65816

    fivepoint

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    #1
    WOW. This is getting ridiculous. Now the big-government Obama wants to increase the Fed's powers. A move most economists and apparently the congress, isn't happy with:

    http://www.npr.org/templates/story/story.php?storyId=105541292&ft=1&f=1001


     
  2. fivepoint thread starter macrumors 65816

    fivepoint

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  3. skunk macrumors G4

    skunk

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    #3
    Oh no, you're going to end up like Sweden!
     
  4. leekohler macrumors G5

    leekohler

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    #4
    From the article, this whole thing appears to be nearly dead out of the gate.
     
  5. jav6454 macrumors P6

    jav6454

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    Bad move. In my opinion, I don't why on Earth is the Fed making the money when according to Constitution Congress has the right to.

    Isn't allowing the Fed to make money paying someone else for a service the country can do free of charge? I mean, I'm no economic expert, but according to what I've read, the Fed is like a private institution that should not be.

    *head explodes due to many variables in economics*
     
  6. Iscariot macrumors 68030

    Iscariot

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    #6
    INCREASE the POWER?

    Is it true? Is Obama the legendary Super Saiyan?

    SHOW ME YOUR TRUE POWER!
     
  7. rhsgolfer33 macrumors 6502a

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    #7
    We should audit the fed, but since it is technically part of the government we need an outside organization to do it (you wouldn't let one part of a company audit the other part would you?). I vote we allow one of the Big 4 accounting firms to do it, not that I have a stake in this or anything. ;)
     
  8. CalBoy macrumors 604

    CalBoy

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    #8
    Congress has established our national currency and is in charge of its production. The Federal Reserve does not print money (the Bureau of Engraving and Printing does this).

    The Federal Reserve is not completely private; it is quasi-governmental. It retains a great deal of autonomy relative to other agencies, yes, but it is no way costing us money. In fact, the Federal Reserve perennially returns a rather nice surplus to the Federal Treasury. It's autonomy has also produced an economy that generally experiences lower inflation and shocks in the money supply when compared to other nations whose central banks are more directly controlled by the elected brach(es) of government (this is true even amongst developed nations).

    Maybe you should know about our monetary system before you throw stones at it.

    Perhaps we should audit the Fed, as the old adage "a fool and his money are soon parted," would remind us. However, if we are going to audit government agencies, why not start with the ones that drain our budget first? Might I suggest the military, entitlement programs, etc? Auditing the Fed right now seems more like political targeting than it does genuine good policy.
     
  9. MacNut macrumors Core

    MacNut

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    #9
    I say we audit the fed and big business, lets see where every piece of money goes and how it is spent. If the IRS can at will audit any person they choose then we should get the same right as tax payers to audit those that spend the money we give them.
     
  10. bobber205 macrumors 68020

    bobber205

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    #10
    Won't auditing the whole Fed Government cost alot of taxpayer dollars? The irony. Let's waste money to see how much money we're wasting.
     
  11. MacNut macrumors Core

    MacNut

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    #11
    I don't see how, everything should be kept in records. Just post them.
     
  12. SactoGuy18 macrumors 68020

    SactoGuy18

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    #12
    I don't think President Obama's idea will fly, not when even more oversight by the Federal Reserve could have pretty bad consequences of over-regulation.

    If we want to fix our financial system, here's my four-point plan that will go a LONG way towards fixing our economy:

    1. Change our taxation system so it encourages personal savings and capital investment in the USA. We have somewhere between US$12 and US$17 TRILLION in liquid assets owned by American citizens and businesses sitting in offshore financial centers for tax reduction reasons; this gigantic amount of liquidity returning to flow in the US financial system would go a LONG way in curing our economic ills.

    2. Tighten regulations on modern "exotic" investment instruments like hedge funds and credit default swaps. There are just too little regulation of these new investment instruments, and as a result if things go wrong the result is gigantic financial losses.

    3. Increase the minimum marginal requirements on trading commodities and stock futures to 15%, with the minimum margin requirements on crude oil, certain foodstuffs, certain industrial metals and precious metals to 25%. This right there gets the "make a quick buck" speculators out of our financial markets and will result in vastly more orderly and far more mild up and down pricing of stock futures and commodities, especially criticial commodities like crude oil, industrial metals and foodstuffs.

    4. Get the banks out of the equities trading business by re-instituting the full provisions of the Glass-Steagall Act as it was passed in 1933. Our banks should be solid, conservative institutions whose assets avoids the ups and downs of the stock market. Remember the 1987 stock market crash? Because banks in 1987 couldn't invest their assets directly in the stock market, banks became a de facto economic "back stop" that held up the economy while the stock market recovered from that unfortunate crash, and as a result the impact of that crash on the economy was surprisingly minimal.
     
  13. rhsgolfer33 macrumors 6502a

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    #13
    I'm all for auditing all of those programs. The fed has been in the spotlight a lot recently and has drawn far more attention from people who don't normally follow its moves, you'd expect a call for its powers to be more transparent.

    We already do audit any publicly traded business. If you want to know something about a publicly traded company's finances all you need to do is look at its audited annual report or audited financial statements. Sarbanes Oxley, which required quite a bit with regards to audits, is called the "full employment act for CPAs" by accountants (both CPAs and non-CPAs).

    I hope this was tongue in cheek. Even if records and figures are properly kept, an audit, especially of an organization with such large scope and monetary endowment as the fed, is quite difficult and time consuming. If we could just post the figures anyone could be an accountant or could have seen the problems that were occuring in Enron.

    I'd be interested in seeing a link with those numbers. Not that I don't believe you, but that is a very large amount of money, in fact, $17 trillion is higher than the GDP of the US. I'm interested in going into the financial arena that helps protect assets offshore and I've never seen an unbiased source with a number for the amount of money involved.
     
  14. opinioncircle macrumors 6502a

    opinioncircle

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    #14
    Maybe these economists should just shut up for a moment and think back on how they missed and didn't see ANYTHING coming...Just my $.02.
    I am not sold on auditing the FED. Sure it looks like it's pretty shady there, but I think the FED has drawn so much attention that people forgets that it is a key in today's economy.
     
  15. jav6454 macrumors P6

    jav6454

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    #15
    Which is why I said I am no economic expert. Thanks for the clear up.
     
  16. Eraserhead macrumors G4

    Eraserhead

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    #16
    Exactly, the British gave more power to the bank of England 10 years ago and it was a brilliant idea, the Euro zone has similar policies too.
     
  17. SactoGuy18 macrumors 68020

    SactoGuy18

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    #17
    I'm in the processing of asking around online to have someone point me to a web page that describes this practice and just how much is currently offshored. The last figure I've heard was around US$14 trillion; that's still so gigantic that bringing it back under better tax circumstances would erase a lot of the budget deficit problems state and local governments are having.
     
  18. That-Is-Bull macrumors 6502

    That-Is-Bull

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    #18
    WHAT?? HIS POWER LEVEL, IT'S... IT'S OVER NINE TRILLION!
     
  19. opinioncircle macrumors 6502a

    opinioncircle

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    #19
    The Euro zone has just given the power to the ECB. I don't think it was a brilliant idea (from an international trade standpoint) but in the Euro zone, the ECB is God in terms of money...
     
  20. pseudobrit macrumors 68040

    pseudobrit

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    #20
    While I agree more with Arthur Levitt's call for independent regulation, and we can look back to the New Deal philosophy of James Landis and his expansion of regulatory agencies as a guiding model, better delineation and cooperation is required to address the very real problems Harvey Pitt sees when he puts forth his idea to solve them with concentration of authority.

    Conspiracy nuts lack the capacity to study or analyze complex systems and so assign agency to chaos and malice to incompetence.

    I don't listen to any theory whose framework sounds like the Wizard of Oz.
     
  21. Desertrat macrumors newbie

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    #21
    The policies of the Master of Obfuscation--aka Greenspan--and of "Helicopter" Ben Bernanke contributed in great part to the financial mess now enjoyed by the whole world. But, what the heck. It's a mere loss of some $40 trillion on paper, right? So 401ks are now 201ks, who cares?

    Sure, give more power to the Fed. Is it not historical that when you create a mess, more of the same behavior will bring you out of it?

    Sarcasm mode off--for now.

    'Rat
     

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