Quote from Sandybestdog:
1. You can't have inflation unless there is an increase in the money supply. The Federal Reserve controls the money supply. How are they not responsible?
2. Tim Geithner is a part of the Federal Reserve, which created this problem through artifically low interest rates under Greenspan. Foreclosures would be no big deal if banks were able to sell the house for at least the amount of the mortgage. They canât because people finally realized that 500k for a townhouse is rediculous. So they stopped buying and the market crashed. The Fed created this mess by pumping too much money in the system. Many economists agree this is the chief propblem. Now they are trying to fix the problems they created by doing the same thing again, lower interest rates.
3. Who should get the new money created during a recession? Will it be the little guy? Of course not. They will print money to bail out all of the banks, and the little guy will pay for it through inflation. Fiat currencyâs always fail. Think about this for a minute. Banks can take a $100 bill and go xerox it and it is perfectly legal. What kind of system is it that people can print money out of thin air? Maybe you should turn your brain on.
4. Nothing is wrong with picking people from the Clinton administration. But Obama promised change. That is going back in time. Now we find out he might not pull the troops out of Iraq and heâs keeping Gates. Didnât he also say he might not rollback the Bush tax cuts?
You said so yourself. Inflations is a tax. So why would you want to raise taxes in a recession? Inflation is a tax on the poor to benefit the rich.
1.) In your original post did you not claim that
VOLCKER was responsible for playing a big role in creating INFLATION?
Nowhere did you say anything about the Federal Reserve. Perhaps you should re-read what you actually post and/or be a lot clearer of getting the "thoughts" that you have in your brain down on paper.
2.) Are you actually tying Tim Geithner to Alan Greenspan? He didn't become a member of the NY Federal Reserve until Oct. of 2003. Even then, he was just one of the Fed Governors. Do you even know what his voting record was while he was a Board of Governor?
3.) After the Fed's announcement of finally guaranteeing Fannie and Freddie, did you not see the FACT that mortgage rates dramatically declined by well over 3/4's of a point in a single day yesterday?
How does that not benefit the American homeowner or a prospective homeowner?
4.) President elect Obama is facing an economy that is most likely registering a -5% GDP for Q4.
Why is it that you are unable to understand that the ECONOMY is the TOP PRIORITY with his new Administration?
Why would anyone replace Robert Gates during this time? He has been a tremendous asset to this Country. Obama obviously values what he has accomplished thus far, and wishes to continue with such continuity of leadership.
5.) Yes, he might not roll-back the Bush tax cuts and would simply let them expire at the end of 2010. Obama obviously understands that balancing the budget right now is NOT the prime concern.
Your understanding of some of the most basic economic/monetary concepts that this Country is facing right now is quite poor.
