Audit the fed

Lord_Tryzalot
Lord_Tryzalot

Rand Paul is trying to pass a bill to audit the Fed again, is Veeky Forums for it or against it?
If it passes what do you think will be the result?

All urls found in this thread:

money.cnn.com/news/storysupplement/economy/bailouttracker/index.html

girlDog
girlDog

Auditing the Fed would have been great back in 1930 when they didn't do their fucking job.

You had one job, Federal Reserve. ONE FUCKING JOB. LITERALLY A REASON FOR YOUR FOUNDING, TO BE THE "Lender of last resort".

BUT YOU DIDN'T! YOU FUCKING DIDN'T. YOU LET IT ALL COME CRASHING DOWN ON US.

PackManBrainlure
PackManBrainlure

politicizing a central bank by letting flat-earther congressmen from dirt farm districts tell them what to do is beyond retarded.

and the fed is already audited.

Booteefool
Booteefool

This right here. I fucking hate redneck Cletus's tell me how something should be done when they can't even get a handle on getting more than 80% of their high school students to graduate.

5mileys
5mileys

There should never be a lender of last resort. It gives the banks a cartel like position.

If a business is in dire straits and deemed critical, the Fed should step in to buy the failing business at an extremely low price.

It can then be kept, with profit returning to the taxpayer, or its shares sold again in the future at profit.

The current mechanism of guaranteeing loans is terrible.

askme
askme

to further add to this,

The Fed should only by a critical business AFTER it has been officially declared bankrupt.

Creditors should then accept their losses.

VisualMaster
VisualMaster

Get out of my country you fucking socialist

Snarelure
Snarelure

haha

Im definitely no socialist.

What the Fed does just now is far more socialist than what i proposed.

The Fed basically uses tax payers money to prop up failing businesses - a capitalist would allow those businesses to fail and create huge opportunity for others.

Effectively you have lots of major US businesses dependant upon the government nipple

TurtleCat
TurtleCat

everything centraliced is related to politics

CodeBuns
CodeBuns

The Fed basically uses tax payers money to prop up failing businesses
u do know fed just loans the money right? and that taarp wasnt fed's doing?

and you do realize if the fed's role is to provide liquidity to the system, it failed massively if banks become insolvent?

and what do you think would happen if the ffed let the banks fail? do you want another great depression? owait i bet you do

Nude_Bikergirl
Nude_Bikergirl

It's retarded, the fed is doing just fine.
The only people that throw bullshit like this around are people too dumb to know what the fed does.

Ignoramus
Ignoramus

u do know fed just loans the money right? and that taarp wasnt fed's doing?

It (well, the US taxpayer) also acts as guarantor for the debt.

The great depression came AFTER the Fed was formed. Before then lots of banks failed. Its now effectively a cartel that means if failure does happen, then they all fail at once.

The Fed is just another weapon to centralise power to the government. If you control the money supply, you control the people. It is one of the main tools to move towards a bigger state and more socialism

Deadlyinx
Deadlyinx

Look at this page to get an idea where lots of this money goes:
money.cnn.com/news/storysupplement/economy/bailouttracker/index.html

It is trillions of dollars (I think a recent figure was $10 trillion) and lots of it went to foreign creditors.

The issue is that in the future, these creditors will need paid. Printing money will only go so far - taxes will, unfortunately, need to be raised

Emberfire
Emberfire

The issue is that in the future, these creditors will need paid.
They are being paid. All the time. That's how a loan works.

RumChicken
RumChicken

It (well, the US taxpayer) also acts as guarantor for the debt.
yes, mainly to prevent run on banks. It's hard to argue that that's a bad policy, since run on banks is a tragedy of commons-type problem.
. Its now effectively a cartel that means if failure does happen, then they all fail at once.
thats not what a cartel is thought. Cartel is an organization of companies/countries to seek market power over a commodity/industry and control their own prices by adjusting production.
Too big to fail is a seprate issue which I think should be addressed more, and as far as i know commercial banks since 2008 have much more oversight as to their financial stability and liquidity.
If you control the money supply, you control the people.
this aint 1800s anymore. Central banks dont collect government revenues in any significant way anymore like they did before. Fed has 2% inflation mandate, which it roughly hits almost every year, if you really wanted to control the people you would have unpredictable interest rare so it wouldn't just get absorbed into the nominal interest rate(fischer's equation)

BinaryMan
BinaryMan

Yes, but new debt has been accumulating at a vastly faster rate than the economy has been growing. A greater and greater percentage of government spending will go to service debt.

Its the same for most Western economies.

Soft_member
Soft_member

auditing the fed would be a decidedly bluepilled action

Sir_Gallonhead
Sir_Gallonhead

100% for regular, in-depth audits. Transparency into the actions of central banks is a must.

any other position is simply asinine

askme
askme

Banks can only gets loans from the Federal Reserve if they are member banks. They are subject to strict regulation to ensure the Fed is not just propping failed banks.

Purchasing bankrupt businesses is not necessarily a reasonable business strategy, especially with banks. Upon realizing that a bank is in the financial grave, most depositors will withdrawal funds furthering the issue. You would need to prove that this model is viable.

The U.S. taxpayer does not guarantee the debt, the U.S. government does. Just because taxpayer fund the government, it doesn't mean they are responsible for the debt. The bonds the U.S. sells are debentures, which means that upon default, the creditor gets nothing. It is kinda like an LLC. I may fund my LLC, yet creditors can not seize my assets, only those of the business.

The Fed does not print money, the treasury does. They maintain the physical currency supply at a relatively constant level, only replacing old bills. The changes in the money supply are due monetary policy, not printing.

The debt issue could be solved by simply closing the deficit and waiting 30 years or so. This is because the money spent on the debt by the federal government is for interest and bond redemption (payment of principle). Thus, closing the deficit makes the debt extinct in a period of time equal to the longest maturity.

BlogWobbles
BlogWobbles

I'm personally against it. The fed is already routinely audited. The Fed is seperated from the rest of the government for a reason. They are politically neutral and only care about inflation and employment. Why would you want politicians who don't understand economics to start sticking their noses where they don't belong.

AwesomeTucker
AwesomeTucker

ron paul is from Jacksonville texas which is one of the most prominent suburbs of houston.

you dolt.

Crazy_Nice
Crazy_Nice

Unless your position is inline with that of the banks being audited. Failing to realize that perspective is naive and retarded.
Banks make more money than I do because I'm retarded and poor
Therefore the banks should be getting fingered by the Gov every quarter to make sure they don't keep making more money than I do.

You're a sucker.

King_Martha
King_Martha

the fed needs to be audited because they are tasked with keeping the economy running smoothly, not enriching the owner banks

SomethingNew
SomethingNew

politicizing the fed

Evilember
Evilember

You are projecting, I'm not poor.

I believe regular audits are a hedge against shady practices. What are you so afraid might found during an audit?

MPmaster
MPmaster

auditing is never a bad thing sure it slows shit down but it can also help catch mistakes

Soft_member
Soft_member

auditing companies are kind of a joke, i tried reporting robinhood at one point and they didnt give a shit.

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