My Rep., The Honorable Kevin Brady, has already signed on long ago.
I wish Representative Paul the very best in this endeavour.
I wish Representative Paul the very best in this endeavour.
Do you support H.R. 1207: Federal Reserve Transparency Act of 2009?
- Thread starter monty21
- Start date
Gold is not a viable solution.
But why not allow (non-collusive) banks to set interest rates as they deem fit to both each other and to businesses and governments?
Why can't we just have reserve requirements on banks (to reduce agency costs of imprudent lending), but otherwise allow them to lend to each other at whatever interest rate they deem fit?
Sure, sometimes the rates may be too high or too low for political likings, but at least they will be guided by market forces and therefore not cause bubbles the way the fed does by artificially forcing the inter-bank lending rates low.
Basically, just have a fiat monetary system without fed manipulation of interest rates and the ability to "create" or "print" reserves for the banks?
But why not allow (non-collusive) banks to set interest rates as they deem fit to both each other and to businesses and governments?
Why can't we just have reserve requirements on banks (to reduce agency costs of imprudent lending), but otherwise allow them to lend to each other at whatever interest rate they deem fit?
Sure, sometimes the rates may be too high or too low for political likings, but at least they will be guided by market forces and therefore not cause bubbles the way the fed does by artificially forcing the inter-bank lending rates low.
Basically, just have a fiat monetary system without fed manipulation of interest rates and the ability to "create" or "print" reserves for the banks?
Yet gold still holds onto its purchasing power. It is not meant to be an investment it is just meant to keep the same value over time, when foreigners hold their foreign exchange reserves in a single currency or government backed bonds it is based on the faith of that government alone.
In the democratic capitalist system there is a little known trick called lobbying, also the large banks can in a similar fashion to the cable companies create industry alliances to squeeze out smaller competitors. In authoritarian systems like China the government only cares for stability so they will fix rates at a certain point and be hesitant to change them. In totalitarian systems, well the government simply has absolute control over everything.
Perhaps I shouldn't have added 'non-collusive' to what I wrote since this is tangential to what I was saying.
As of now, banks can borrow at the fed-specified rate and then loan out to consumers.
I don't see what is wrong with removing the 'fed-specified rate' part of the equation and allow banks to lend to each other at whatever rate they see as fit... That way you wouldn't get excessively low rates year after year and create asset bubbles that are bound to deflate the moment the debt cycle is unsustainable.
The value of $1 over time, in 1776 dollars.
Weeeeeeeeeeeeeeeeeeeeeeeeeeeeeee.
Worthless paper.
If a crisis arises, 20th century banking at the Fed: "When in doubt, print it out."
That graph's pretty useless since it doesn't show average (or sub-average) quality of life or purchasing power...