Ron Paul, author of 'End the Fed', to lead Fed oversight panel

Discussion in 'Politics, Religion, Social Issues' started by fivepoint, Dec 10, 2010.

  1. fivepoint macrumors 65816

    fivepoint

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    #1
    Awesome, although I don't see what everyone is so upset about... clearly the FED isn't printing money. ;)

    Should be interesting.
     
  2. eawmp1 macrumors 601

    eawmp1

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    #2
    In essence, the Fed, which has few tools left to stimulate banks lend, is, in effect, devaluing the dollar.

    However, Bunning doesn't acknowledge that years of deregulation/poor enforcement, and poor budgetary dcision by years of self-serving legislators is the cause of the pickle we are in.
     
  3. mcrain macrumors 68000

    mcrain

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    #3
    I like that the GOP chose someone who has an interest in the subject matter, but I think the reason people are upset, and the reason I'm concerned, is that Ron Paul's stated intent is to eliminate the organization he is supposed to be overseeing. GWB and the GOP have a history of putting people in charge of organizations that have no desire to make the organizations better or run more efficiently. In fact, many of those people wanted to eliminate or make less efficient the very organizations they were supposed to be running for the American people.

    So long as Ron Paul uses this new position to make the Fed run better, then great! If, on the other hand, this is merely a way for Ron to destroy that which he is in charge of, I personally think his appointment is a mistake.

    (We already know what happens when you put people in charge of agencies they want to destroy - Gulf Oil Disaster?)

    (edit) Sorry, I reread that and wanted to clarify. Just because someone wants to reform or reduce regulations or do things differently than the way they have been done doesn't disqualify them in my mind. Ron Paul may be the perfect guy for this post.
     
  4. leekohler macrumors G5

    leekohler

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  5. mcrain macrumors 68000

    mcrain

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    #5
    Oh, I don't know. Ron Paul at least has some history of independence from the right-wing uniformity that's been plaguing Washington, even though he seems to have been walking lock-step with them lately.
     
  6. chrmjenkins macrumors 603

    chrmjenkins

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    #6
    I'm inclined to agree with you here. I just don't have a whole lot of hope that his criticism will be constructive in any way to how the Fed operates.
     
  7. leekohler macrumors G5

    leekohler

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    #7
    No- he'll intentionally try to screw it up to "prove" it needs to go.
     
  8. fivepoint, Dec 10, 2010
    Last edited: Dec 10, 2010

    fivepoint thread starter macrumors 65816

    fivepoint

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    #8
    It hardly needs further proof. Look what the federal reserve has done to the value of the dollar since it was created in 1913.
    For those of you who want to dig deeper... Read This

    [​IMG]



    Glad you added that part. Logical. I'd suggest someone who questions the very existence of a given program might have much better luck at making fundamental improvements to something than someone who's unwilling to barely scratch the surface and see what the real problem is.
     
  9. mcrain macrumors 68000

    mcrain

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    #9
    True, except should that person be in charge of the program? If you don't think NASA has a purpose, you are probably not the best person to be in charge of the next space program. On the other hand, if you are a critic, you might be capable of running a good space program AND fixing some stuff.

    Your chart is famous, but it really only shows about a 3% rate of annual inflation. That's pretty mild considering the various times of hyper-inflation and deflation that have occurred in the last 97 years. Not to mention, while the value of a dollar bill may have deflated over time, the things you should have invested in using those dollar bills have not.

    [​IMG]
     
  10. paddy macrumors 6502a

    paddy

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  11. skunk macrumors G4

    skunk

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    #11
    He's the only Austrian in the village.
     
  12. leekohler macrumors G5

    leekohler

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    #12
    Yeah, econ 101. He keeps repeating it though. :)
     
  13. paddy macrumors 6502a

    paddy

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    #13
    Nothing like a bit of flawed, unsubstantiated 'logical' deduction!
     
  14. skunk macrumors G4

    skunk

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    #14
    Is there any other kind?
     
  15. NT1440 macrumors G4

    NT1440

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    #15
    Nope, but he's got a PHD in spurious correlations.
     
  16. skunk macrumors G4

    skunk

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    #16
    It's a very demanding qualification.
     
  17. NT1440 macrumors G4

    NT1440

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    #17
    I'm sure he's studied under the best ;)
     
  18. Desertrat macrumors newbie

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    #18
    One problem not shown in mcrain's graph comparing the stock market and the buying power of the currency is that of when one invests. Folks who bought dot-com stocks in the early years of the bubble did well, generally. Those who bought at the peak went broke.

    If you buy at the beginning of an up-trend, fine. But what percentage of individual investors do that?

    The stock market did not do very well for Orange County, CA, or for Enron. GM stockholders and bondholders got the queen's elevator: The royal shaft.

    The Austrian School can at least predict business cycles, and can predict the results of Fed policies on interest rates. The Keynesian track record is absolutely horrible. Note that Austrians were predicting today's malaise some five and more years ago. It has come as a total surprise to the Keynesians--and they still don't understand the problem, as evidenced by the ongoing creation of ever more debt.
     
  19. Eraserhead macrumors G4

    Eraserhead

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    #19
    Such is the nature of investments, they go down as well as up.
     
  20. 63dot macrumors 603

    63dot

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    #20
    Wow, I have almost nothing to say. Do you know how simplistic it is to equate the dollar having less buying power to the Fed? I'm sorry but it's a lot more complicated than that, but it does feed into the conspiracy theories some have about the Fed and finding a single scapegoat.

    Reading that graph with the conclusion of blaming the Fed is about as sound as blaming the entire recession on the Fed. A lot of factors out of our control made this happen, but it's true we do have some control and the Fed has not been perfect by any means.

    I say the best thing to do is to also read everything defending the Fed, even to the point of reading the conspiracy theories on the other side which blame everything on the groups that blame the Fed.

    Any group which holds this type of power will be controversial, but even then can never have the power the detractors of the Fed say they do.
     
  21. fivepoint thread starter macrumors 65816

    fivepoint

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    #21
    The Federal Reserve is supposed to protect the value of our money... instead the value of the dollar has crashed due to inflation. Inflation hurts no one more than the poor because every dollar they earn is worth less and less as time goes on. The Federal Reserve has failed to maintain the value of the dollar and has proceeded to continue printing and printing until the rest of the world has begun to question it's security (Russia, China recently agreeing to stop using it for trade).

    Clearly the issue is more complex than just the FED, but I don't think anyone can honestly say it didn't play the primary role in the fleecing of our dollar in the past hundred years. If you have some better information on the topic, let's hear it.

    [​IMG]
     
  22. rdowns macrumors Penryn

    rdowns

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    #22

    Nice job of equating Chinese-Russian trade deals done using their own currencies with "a question of the dollar's security".

    All I want for Christmas is more tin-foil.
     
  23. yg17 macrumors G5

    yg17

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    #23
    And he's also quite the expert in Excel - look at all of the charts he posts!

    Oh, that's right, this is a Mac forum...he's an expert in Numbers ;)
     
  24. fivepoint thread starter macrumors 65816

    fivepoint

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    #24
    You have GOT to be kidding me. It's not just Russia and China. Countries all over the world are talking about getting rid of the dollar as the global reserve currency!!!!

    http://www.telegraph.co.uk/finance/...ts-new-global-currency-to-replace-dollar.html
    http://online.wsj.com/article/SB123780272456212885.html
    http://www.nytimes.com/2010/12/21/world/europe/21iht-politicus21.html
    http://www.marketoracle.co.uk/Article24991.html
    http://www.safehaven.com/article/27...s-as-the-worlds-reserve-currency-are-numbered
     
  25. 63dot macrumors 603

    63dot

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    #25
    The dollar has gone from the currency to just one of them, and maybe not the top one anymore. That I can agree with.

    It's a long stretch to tie that to just the Fed though.

    Fed bashing is in the domain of the conspiracy theory types, many who populate my Greens and Libertarians. The conspiracy theory people who like third parties, just because they are small and for no other good reason, help discredit third party ideas by having the public at large hear those squeaky wheels who should get tinfoil and kool aid.
     

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