Yotetrapper30, not directing it to anyone directly. I was just making a point/fact because it is easy to blame one for the other. I hope no harm to anyone just wanted to point it out because when a thread is started on these subject there shouldn't be that confusing. Sorry if I spoke out of line.

Unpopular opinion,,

The welfare state started in the 1910’s,,,,, beginning with pensions

The same time as the fed was created

The beginning of the downfall,,,to much government,,,,Keynesian economics

And it’s still preached today

It’s not a coincidence,,,,

,

Why would you think that gold is finite ?

In order to believe that , one would have to reject one of the basic principles of geology.........Uniformitarianism..........The processes that have operated in the past are still operating today in a uniform manner. IOW.....there is gold (and everything else) still being created in the earth today just as there was in the past


Returning to some degree of gold standard might stabilize the dollar but it could also cause a severe contraction in economic activity world-wide because gold would have to be re-valued massively.

Also, I don't think we should put our country in a position where we can't spend or borrow money to deal with an unforeseen crisis like a war or a natural disaster....or some other unknown unknown.

To eliminate inflation completely could also eliminate economic growth simply because there isn't sufficient capital to borrow or because a gold backed currency may create higher interest rates.....making it more difficult and more expensive for businesses to borrow. It could lead to deflation eventually.

Recall that one of the major problems that led to the creation of the Fed was that there were thousands of banks in the US that were issuing their own currencies............clear back to the 1860's this was a problem.

How do you value a currency issued by bank X relative to currency issued by banks Y & Z ?? And don't forget we were on a gold standard at that time.

There was also the social phenomenon of bank runs and failures that were caused by farmers needing currency/credit in the spring....for seed and equipment but not paying back those loans or deposits until fall when they sold their crops. It created a tremendous imbalance of available cash over disparate geographies. It was the classic rural-urban divide.

So IMO this is not a simple subject with a simple solution.

Bottom line for me is I do not want politicians of any stripe setting interest rates.....Talk about chaos ! There would be almost no continuity or ability for households or businesses to plan, save, invest, or grow.

To those who think Powell is at fault here for something remember.......there are 12 people voting on the FOMC where rates are concerned. Powell is just one vote. How is it logical to think he is calling the shots on rates ?

Rates ,......IMO, are too low at this point. They never should have cut at the last two meetings. Hopefully they will not cut again at the end of this month.

Not at all!!



I don't think it's that unpopular of an opinion. Well, at least not on here.

The two ingredients that can dictate Fed Rate decisions is Inflation, Job Numbers. Considering those two number is why their decision was made in every Fed Gathering on rates. Their decision is basically followed those numbers.

Perhaps finite was the wrong term. Would limited be better?

In camparision to paper which is literally growing in trees gold is infinitesimally rarer and harder to source.

I’m completely not an economic expert of any kind like a number of you on here are. But I think a lot of what you said is on point with just how I feel. Anything short of FED independence as it has been to this point for the most part will not do us any favors. Happy trapping! ScottW

Yes! I do not think they will cut again this month... I would be very surprised if they do.





Yes... the Fed has a dual mandate. They must consider both unemployment and inflation. Some think inflation should be given more consideration than unemployment. At any rate... unemployment is 0.4% higher than the target currently, while inflation is 0.7% higher than the goal. Inflation has been higher over the target (I believe) than unemployment has been for the last two meetings in which the Fed has cut rates.... if they were going solely by the numbers, they wouldn't have cut. There are other things besides just the numbers they take into consideration. But IMO they've been cutting too fast.

and poorly distributed too

IDK,,, seems like a lot of folks thinking the government(or a group of bankers) should solve their problems, and carry them thru to the end

I think the Federal Reserve is necessary to control inflation. There is no greater threat to a retiree than to have run away inflation while stuck with a fixed income.

Why do we need to stimulate the economy with lower interest rates when all.we hear from the administration is that the economy is booming?

Trillions of debt is coming due this year,,,

Lower interest rates are critical

Punishing savers,,,,,,

Inflation is a persistent economic happening where the cost of goods and services increases over time. This increase in prices is primarily driven by factors such as rising production costs, wages and benefits, increased demand, and central bank policies aimed at maintaining the economy's money supply.

Inflation costs can go down but in most all products costs go up so inflated prices stay and it becomes the norm.

We don't!



Well........ yeah but..... you're kinda forgetting about the effect of fiscal stimulus on inflation....

There is nothing *Federal" about the F..R. it's a private bank, mostly owned by overseas interests. And there is nothing in "reserve". It's completely contrary to our best interests.

I believe we need a central banking system. I believe need a FDIC type backing for banks. I don't not believe in a debt currency and neither party can be trusted with the ability to create Mom out of thin sir

Ken, gold is being revalued massively. It wasn't all that long ago it was under 900 dollars . Inflation is a good thing when it's organic and created by the normal flow of the free market. That flow also allows for deflation. The FED is more afraid of deflation than inflation.

As far as a country needing to have the ability to create debt backed money to fight a war my question is how did we fight and win 2 great wars?

In case anybody hasn't been paying attention the FED has restarted QE

The primary mechanisms for creating new gold atoms are cosmic stellar explosions and colliding neutron stars. The gold was already present in the cosmic gas cloud from which the sun and planets of our solar system formed. There isn't more new gold being created within the earth and any new gold being deposited on the earth (via asteroids, etc.) is a drop in the bucket. There's still gold being created via processes out in the cosmos, but not on earth.