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the US government isn't in control of the dollar rate - the central bank is private.
by beaconstudios 5y ago
the US government isn't in control of the dollar rate - the central bank is private.
- kelnos 5y agoRight, but the US government is in control of who gets to run its central bank. Certainly it would take longer to change policy than in a country where the central bank is run directly by the government, but it's more than possible to do.
- sudosysgen 5y agoWe both know that this isn't true. First, the US government gets to run an arbitrary deficit, which is essentially the same as printing money. Secondly, the Fed's board is appointed by the government and can be recalled by the government. Thirdly, if the US government wanted they could change all of the rules governing the fed. It has nothing to do with not being able to. The US just decides it's more profitable to have the reserve currency. You can't have it both ways, and it's senseless to complain about not being able to have a cake after eating it.
- beaconstudios 5y agowho said they wouldn't be able to take absolute control of the fed? My point was only that they aren't currently. They'd have to make some serious changes in order to do so!
- sudosysgen 5y agoThey currently have more than enough control over the fed to be able to plan this kind of policy. They simply need to choose the next head of the fed to be one that agrees, as they already do.