Chilling Words from Milton Friedman to The Present Federal Reserve

[bodinian]

I agree with what he is saying, but why the asanine audio clip in the beginning attacking this as Obamas issue? The Federal bank is a disgrace and should be terminated immediately. This is coming from a Liberal who knows how economics work. The bailouts, the Fed, all of that is disgusting.

[TheLadyyno]

@bodinian You may know economics, but do you or anyone on this page know exactly WHO the FEDS are and how they operate?

[burgazadada]

Milton Asshole Friedman burns in Hell

[secretbonus]

@burgazadada He was against the fed during the end of his days.

[TheLadyyno]

@burgazadada Why do you say this?

[kriskats19]

I don't support the Fed, but one of the worst things that was done to the Fed was when Jimmy Carter had the Fed look after the unemployment rate instead of just inflation. This means that they are inflating the money to rescue the unemployment rate. This is very harmful to retirees who saved money or are on fixed income. It also leads to these massive bubbles of investment that we have seen that end up causing unemployment all over again.

[AntiSchiff]

Friedman was speaking here about 70s and early 80s inflation, stupid. It hasn't been applicable since then.

[zaal08]

@AntiSchiff he is speaking about the capitalist system and threat of economic turmoil that face it. last i checked we are still using a free market capitalist economy so still relevant.

[AntiSchiff]

@zaal08

No stupid. That's just because you don't know the first goddamn thing about Friedman's monetary policy views.

[stankmaw]

@zaal08 It is not truly a free market when there are forces that effect supply and demand

[berlintreaty]

@AntiSchiff

Are you 9 years old?

[AntiSchiff]

@berlintreaty

Are you an idiot? Mine's a rhetorical question.

[TacticalCitySlicker]

This is blaming the symptom for the disease....

The world never had a great depression or commodity bubble before the creation of the Fed because the free market wouldn't allow the cheap credit which leads to the over investment and the eventual bursting of the bubble. Also no one likes to talk about the immorality of Inflation how it taxes the savings of the middle and lower classes because they get the "new money" last and so have less buying power than at the beginning.

[KevinSheerin]

@TacticalCitySlicker well said spot on analysis

[secretbonus]

@TacticalCitySlicker That's not true. There were a number of banking panics, and periods of economic famine throughout history, you just aren't going back far enough in history. In the United States, economists typically refer to the Long Depression as the Depression of 1873–79, kicked off by the Panic of 1873, and followed by the Panic of 1893, book-ending the entire period of the wider Long Depression.

[TacticalCitySlicker]

@secretbonus Created by European central banks proving yet again my point, thank you...

[secretbonus]

@TacticalCitySlicker Maybe so, but it occurred in the US as well when it did not have a central bank. So if we end the fed we will still be susceptible to central banks around the world. Economic hardships and high taxes were the primary reasons for the revolutionary war before we had a central bank (Hamilton) as well. If you want to look back farther in history, there were famines in biblical times. It's called the solar maximum. Higher temperature, droughts and shortages of crops.

[TacticalCitySlicker]

@secretbonus Do you even get the concept of a central bank? Why governments like to have them? It's because it creates false line credit for that government to in debt their populace. Also it prevents it's population from controlling the value of their own money and so taxing it's population through inflation, and paying off it's debts with inflated currency. "depressions" are merely the symptom of the banks central planning. Please do some research on this not just MSNBC...

[secretbonus]

@TacticalCitySlicker There are plenty of banking panics without federal reserves, and periods of excess (tulip mania). There are plenty of bubbles and busts without a central bank. Run on banks happened in 1929 before the fed had an elastic money supply to increase printing during times of emergency. The fed is supposed to be "lender of last resort" it just doesn't function that way in reality.

[TheLadyyno]

@secretbonus Hi....the banks planned the "Depression" after they had their patsy Woodrow Wilson sign the "Federal Reserve Act" into law,of which Wilsonlater would clasim that he was a very unhappy man and how sorry he was that he had sold his country into bondage! Ain't that a shame?

[secretbonus]

@TacticalCitySlicker Prior to the federal reserve you would have say $1 in the gold vaults for every $10 in circulation. There wasn't enough gold in the vaults if people wanted their money back. We created the fed to loan money to banks to prevent a run on the banks from preventing freezing of trade and depression. Nixon went off the gold standard because Johnson & Kennedy made promises of social security and medicare with no plans to finance them and then we faught in 'nam and korean wars.

[TheLadyyno]

@secretbonus Who is "we" here?

[TheLadyyno]

@secretbonus This is what they said but it was a lie. they duped Woodrow Wilson into signing the Federal Reserve Act into law to cause the Congress to turn over to the Feds the control of all the money in this country, to eventually bring this country and the rest of the world into a One World Government! Read "The Creature from Jekyll Island".

[secretbonus]

@TacticalCitySlicker We owed something like 40,000 tonnes of gold to foreign bond holders in a time when we only had 8000 tonnes in our vaults. Foreigners wanted their payments in gold when spending was out of control, but the government robbed the foreigners, by switching off the gold standard "temporarily". I am very well aware of the central bank's attempt of robbing of bond holders through inflation, although government and economists never understands the global implications.

[secretbonus]

@secretbonus Although the central bankers around the world will hold US bonds and dollars because it's the largest and most liquid market, there simply isn't another market to go to if people want to go to a large and liquid market in times of crisis because it has world reserve currency status that it got when it was on the gold standard. The ECB is limited and lacks the elastic money supply to avoid default, so if global trade slows the dollar will be in demand.

[TacticalCitySlicker]

@secretbonus Look something up for me it's called the "hagalian dialectic" Problem, Reaction, Solution. More often than not the solutions you see are only the ones they want you to pick, after they created to problem to get the desired reaction. If a company is run irresponsibly it deserves to go bankrupt. Same thing with a country, it does not deserve special privileges to rob it's stock holders (citizens). Don't socialize a governments losses on the backs of you and me.

[secretbonus]

@TacticalCitySlicker The problem is systemic. The derivatives created and sold as insurance, but the company selling them could have risked 100 times everything they had on it. i.e. you buy flood insurance only to find the insurance company is built right next to the lake in the valley of your hometown. The "solution" is not if we screw over someone but who? The person who bought insurance, those who finances our debt, the businesses that pay for the jobs, the elderly, or the taxpayer?

[secretbonus]

@TacticalCitySlicker Problem was not created by a "fiat currency" though. Ancient Rome did not have Fiat $, yet it fell into an economic abyss and collapsed. It made promises of unfunded liabilities to their military. US has 110Trillion in unfunded liabilities created on hope future generations would pay it long before nixon closed the gold window. Debt skyrocketed in the 80s after Volker raised rates in the 70s & we did not have enough gold to pay so we postponed collapse by going FIAT.

[TheLadyyno]

@TacticalCitySlicker BRAVO! I AGREE 100%!!!

[secretbonus]

@TacticalCitySlicker The economists fail to understand global implications. Central banks fail to realize they cannot manage a global economy domestically. Euro contagion may not be able to be contained domestically if the event is external and every country has counter measures against another countries measures. '87 crash occurred because the US made statement in G-5(now G20) conference that they would devalue the dollar, so dollar denominated assets were sold heavily by foreign investors.

[TacticalCitySlicker]

@secretbonus I respect your opinion but I vehemently disagree with it. I just hope you buy a gun and some dried foodstuffs so you can survive the next few years and know you were wrong...

Much love.

[TheLadyyno]

@TacticalCitySlicker You are absolutely correct. You have researched and learned very well. :)

[TacticalCitySlicker]

@TheLadyyno You are too kind... =D

[MrROTD]

@TacticalCitySlicker that's right and Canada got fucked the same way in 1930, our money is not even based on real productivity anymore. The Bank of Canada doesn't do it's job, the major banks in Canada issue money and loans on money that doesn't exist. Think about that, there's people getting rich from interest on money they never had in the first place XD

[TacticalCitySlicker]

@MrROTD Although Canada is just as guilty as the rest of the world with their monetary policy. They are by far the least of the offenders. look at the masive appreciation the CD has had against the USD. Unfortunately your nations currency like all other nations are still tied to the value of the USD. So when we go down (and we will) so will you and everyone else. Buy some silver maple leafs and don't put your address on the receipt. And best of luck to ya. Eh.

[unclerocketthe1st]

the huge oil prices that drove the various inflationary cycles were caused by government entities, not capitilism. The opec nations determine the flow of oil for their own purposes so thereby cicumvent the capitilistic means he talks about. Proving the theory of governments ruining capitalism lol. There is an abundance of oil, not a shortage each and everytime the prices spike. Even now our prices are driven by stupid restrictions to allow the drilling for more.

[EdwardWongtheFourth]

@unclerocketthe1st Not that any oil drilled off the coasts of north america would actually go to north america to reduce the cost of gas, and even if it did, it would be insignificant.

"our prices are driven by stupid restrictions"

No. Not the restrictions here.

[unclerocketthe1st]

the huge oil prices that drove the various inflationary cycles were caused by government entities, not capitilism. The opec nations determine the flow of oil for their own purposes so thereby cicumvent the capitilistic means he talks about. Proving the theory of governments ruining capitalism lol.

[TheLadyyno]

@unclerocketthe1st Once they bring us down to our knees by destroying capitalism, they can then join forces with the other planetary parasites, called, globalists and implement their One World Order that George H.W.Bush spoke of , no less than 21 times when he was in office!

[atlasman55]

Friedman ignores the fact that a huge surge in oil prices served to start the inflationary spiral, not an overabundance of money

[sniped101]

@atlasman55 remind me how oil prices cause inflation?

[valmorgan]

End the Fed!

[americaisbacktrump]

Friedman fails to expose the Fed.

[CloverfieldMonster95]

agreed I think Bernanke sold out lol

[2955Kevin]

Its a shame Friedman didn't live longer to give us his views on the 2008 financial crisis and the responses of govts across the world - not least Bush, Obama and the current head of the Federaql Reserve.

When suggesting Friedman would have been opposed to Bernanke's gross irresponsibility of the last few years it has to be remembered that Bernanke himself is often quoted as being a keen student of both the 1930's recession and Friedman's analysis of it.

[PanzerDivisionBOM]

@2955Kevin

I think he's the wrong man for the job.

Friedman granted the fundamental conceit that the state must coercively monopolize and carefully manage the provision of money. He might squabble over details - complain that Bernanke's inflation goes far beyond his own suggested 2% fixed annual rate, or about the variance over time in the rate of inflation - but he could not offer a coherent critique of inflationism or central banking as such, which would not also demolish his own position.

[UngratefulLiving420]

@2955Kevin Well he needs to study harder. Friedman was against the bailout of Chrysler when he was around, and would have been appalled by the actions of Bernanke since he's been in charge of the Fed. From the AIG and bank bailouts, to the conduct of Bernanke and Paulson during the Merrill Lynch-BoA merger (as reported by then-New York Attorney General Andrew Cuomo), we are basically doing the opposite of what Friedman would propose

[TheLadyyno]

@2955Kevin The Federal Reserve is an evil entity!