Ex FED Chair Greenspan says Central Banks not in control

[accursedheretic]

We are fucked. People get dumber and dumber every day. I fuckin see it right before my eyes. How can we explain anything to these idiots nowadays? Education is horrible. The plan is workin fuckin great from what I can see. And these are the people we are depending on to join us? Fuck we can't even get any numbers to stand up against the bankers. These blinded sheople would rather fight against us rather than for us. Blind patriotism is a bitch. Fuck how I hate the Jesuits & the Catholic Church!

[ForTehNguyen]

isnt it funny when we didnt have anywhere near the amount and severity of booms, busts, and inflation when we were on a 100% gold standard?

[RBoon]

As you seem to know, ForTehNguyen, there is a DIRECT correlation between fiat paper money and unstable economy.

And a gold standard and stable economy.

Now all we have to do is convvince the rest of the world - - -

[entro666]

There are far too many variables to draw a direct correlation, but there are certainly advantages and disadvantages to be drawn for both methods.

[DarthKazi]

Bleh. Central Banks of nations are invested in other banks of other nations. The point of central banks, anymore, is the ability to trade with other banks abroad. The Treasury in and of itself is not set up to be a bank. But the Fed COULD be reduced to an underling of the Treasury (like the mint or the IRS) which only has a function (trade with other central banks for liquidity), rather than absolute power of the money supply.

[letsgoforajoyride]

@DarthKazi the irs is the extortionists for the government within our government, i am sad to see all of your heads on so loose

[IExposeMormonism]

This monster is incomprehensibly evil.

[pepsimannampepsi]

It's going to be difficult to raise interest now. Our national debt is so large, the minute we raise interest rates, the more money we have to pay on the debt in interest.

[niamhferris]

Bullshit the federal reserve has little control, today, instead of holding gold reserves, all countries mainly hold low-cost loans to the US (Treasury Bills) as reserves - thanks to nixon's administration for taking the dollar off the gold standard - so maybe this individual country should take responsibility. a superpower can't claim its hegemony and not face its responsibility. well evidently it can... but it shouldn't

[SoLoLaamer]

Well a super power can be a super power without interfering with other nations.

As of the past 40-60 years it seems a bit like we are Interfering when we don't need to .

Just because your a powerful country doesn't mean you need to sling your weight around at some one Else's problem. Secondly im tired of my country using the money i pay in taxes to BRIBE other countries, and then call it charity. That ticks me off, also whatever is sent overseas should be spent right fucking here.

[flyinggeng]

Central Planning in the form of a central bank sucks. Stop trying to screw around with the economy!!! Especially you Mr. Greenspan. You're the number one culprit.

[zimple007]

heaheahhaheah!!! good one alan..

[basiclifej]

guess what...the first chairman of the Federal Reserve Bank of New York is Pierre Jay... memeber the secret society skull and bones!!!!!

[jobedied]

Two dozen nations have swallowed the Milton Friedman ,Allen Greenspan poo poo and now will enslave future generations to bail out the housing contractors and bankers. Just to start the same lending stealing cycle all over again on the very people and their children who bailed the bankers out. Something is very smelly it is called legalized stealing. A common citizen would go to jail for such pyramid schemes.

[letsgoforajoyride]

@jobedied fuck off communist... milton friedman has nothing to do with the corrupt ceo.s his words are wisdom.. you just dont like working do you?

[letsgoforajoyride]

@jobedied and btw greenspan is a shithead fuck that milton talks about those type of evil people getting their hands on the wrong thing. milton friedman wasnt a fed was he..? no.. so shut your stupid dittohead mouth holy shit u sound stupid. friedman even has a video that says Abolish the fed.. why dont u just shut your fucking mouth you offended me with your great stupidity. milton is awesome and belives in true non corrupted bailout bullshit you are trying to pin him too.. idiot.

[libertyeconomics]

The Fed DOES control interest rates through, first and foremost, FOMC operations.

[ogello]

which is the whole meaning.

they create a mess that they cant even control. So actually who can? Nobody.

But who profits..?

guess who

[theCRIMSON12]

it isnt that they CANT control it, its that they WONT, because like you said, they profit from it.

[ogello]

that is correct.

So now the ECB are record low lets see when they go sky high again :)

[skateov]

ECB? not sure what that is lol, i feel stupid cause i bet i know i just cant think of it. hah.

[ogello]

european central bank :) they want everybody to spend spend spend.

[JoeTube27]

Central Banks run everything. BIG SCAM. Blow it up.

[JewX0]

That's very interesting. I wonder if higher federal rates result in lower profit margins or higher civil rates. It seems like either would have caused a collapse. If returns were too low there would be no reason for purchase and further if the rates were too high there would be less returns (in equity). I have no idea where the funds from lenders to pay housing companies comes from in this case. But a run would surely cause FDIC to print money, ironically that money would be worth nothing.

[RBoon]

As you point out, a real tangled mess - - - somewhere it almost certainly has its roots in fiat money.

[JewX0]

True Rboon, but it's important to recall what without fiat money progress would have be severely impeded. Also, without fiat money America would not be the richest nation in the world.

[RBoon]

The Austrian School diaagrees with the assertion that progress would have been hampered if there wasn't fiat currency. Your second proposition is more difficult to untangle -- the USA has been able to print itself rich, but at the expense of the rest of the world. And that's why "it" has also exported most of its manufacturing jobs to other countries.

[JewX0]

Solid argument. Where would you suggest reading about the stance the Austrian School takes?

[RBoon]

Google "Austrian School" and/or "Human Action." That's a heck of a read, but it demystifies a lot of what passes for "economics" these days.

[letsgoforajoyride]

@JewX0 well we shouldnt be.. we are cheating

[4096x]

He's a liar.

Central Banks control the money supply. Like america the UK pumped it's economy fully of money and wey hey, Boom .... and now for the Bust.

[stealthswimmer]

not necessarily a liar. Just saying that it had to do with more than the Fed. Clearly this has to be true if they tried to raise the rate and failed....whether by political forces or supply/demand forces, or(more likely) a combination of those three things.

[4096x]

should have raised rates.

[stealthswimmer]

well ya see he said they tried and they failed. The Fed can't set real interest rates directly because it can't set inflation expectations directly, even though expected inflation is closely tied to what the Fed is expected to do in the future. Also, in general, the Fed has stayed out of the business of setting nominal rates for longer-term instruments and instead allows financial markets to determine longer-term interest rates.

[4096x]

i'm less familiar with the Fed, in the UK the BoE sets rates to control inflation (main mechanism) -- they had their chances, going back as far as 2 yrs ago now. Even at the time commentators said they should have hiked them up.

[brianpadraic]

Agree. He is either a liar or just their front. They have the control of rates! What the hell is he talking about? Is some ghost running the show? Give me a break, Alan!

[nocturnalc]

That devil is a liar. He would've been hanging from the gallows before the 20th century and sent back home. We are too kind!

[SoldierCyfix]

i wish him and his family great harm; slow painfull death, and to all the family owners of the Central-Bank

[brianpadraic]

The family owners, sure, but I think Alan is a puppet, SoldierCyfix, and not a Player. They just robbed Califorina: AGAIN!

[unameitltd]

Greenspan reduced rates to 1% for years and fraduently inflated housing prices, to say central banks that have the most power in the world have little control is just laughable to anybody who knows ecnomics.

[RBoon]

You may have been right --- in the past.