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The Fed is one of the most misunderstood institutions. Basically, everything you have said is completely wrong, which makes difficult to write a reply, because

The Fed is one of the most misunderstood institutions. Basically, everything you have said is completely wrong, which makes difficult to write a reply, because where to start? In short, the original design of the Fed was correct, where each branch was independent and could set their own interest rate, and they purchased commercial paper to stimulate the economy. This changed during WWII, where the government mandated that they had to purchase government bonds to support the war. Congress is the main problem, where they spend money recklessly with no intention of paying anything back. The Fed is in a position where if they don't raise interest rates, they will be blamed for the bad economy. The Fed is a convenient scapegoat, used by people who assume that Youtube videos are correct.

jocaal 4y ago
I may not know everything about how they operate, but I have seen how qualified their leadership is. The fed is usually run by a bunch of phd's so I have come to trust it a bit more than other government institutions.
- lettergram 4y ago
  1. The FED isn’t a government institution. That’s part of the problem. 2. In my opinion, a PhD doesn’t make your more qualified inherently. How often do candidates fail their qualifying exam or defense and never return? (Hint very few). Take a step back and ask what the alternatives are? Prior to the 3rd central bank of the US the government was effectively fine. But it couldn’t print money, it had to collect it via taxes. This limited taxes and government spending. Now… it’s basically a constant tax called inflation; much of which we export.
boppo1 4y ago
> Congress is the main problem, where they spend money recklessly with no intention of paying anything back This is surely the main problem. But if we simply had a market equilibrium interest rate, they could not spend like they do. Hence, they are junkies and the Fed is their dealer.

jocaal 4y ago

I may not know everything about how they operate, but I have seen how qualified their leadership is. The fed is usually run by a bunch of phd's so I have come to trust it a bit more than other government institutions.

lettergram 4y ago
1. The FED isn’t a government institution. That’s part of the problem. 2. In my opinion, a PhD doesn’t make your more qualified inherently. How often do candidates fail their qualifying exam or defense and never return? (Hint very few). Take a step back and ask what the alternatives are? Prior to the 3rd central bank of the US the government was effectively fine. But it couldn’t print money, it had to collect it via taxes. This limited taxes and government spending. Now… it’s basically a constant tax called inflation; much of which we export.

boppo1 4y ago

> Congress is the main problem, where they spend money recklessly with no intention of paying anything back This is surely the main problem. But if we simply had a market equilibrium interest rate, they could not spend like they do. Hence, they are junkies and the Fed is their dealer.