Well blades this is saddening really but really it was the response i expected... anyway. Well i attented university for two years accumulated debt and now im going into the air force to pay off said debt, anyway i dont have classes right now so i decided to go to my gfs gov't class with her (community college). Lucky me their was a guest speaker the day i decided to go. Her name was Sue Levy i think, a chair of the democratic party in one of the counties in michigan. START HERE IF YOU DONT CARE ABOUT BACKGROUND Ya lots of useless bakcground lol but this is the question i asked her: What do you think about bernankes announcment of Unlimited bond purchases, about 40 billion a month, and what affect, if any do you think that will have on the strength of the dollar? and her answer was: I've never agreed with bernankes policies, but i think we need to keep our interest low to keep getting cheap money to stimulate the economy, i ask again, do you think that printing that money will have adverse effects on the dollar? her response: no i think it is most important to keep small businesses investing and people purchasing. Then i ask her about the debt, this was the best. Her response, I dont think we should worry about the debt, we need to worry about cheap money and keep small businesses investing. After she said that last response i literally laughed in her face and said We dont need to worry about the debt? then she called on someone else lmfao. I hope that was easy to follow but just goes to show why America is so fucked in the first place, b/c politicians fail to understand basic economic concepts ie printing more money causes inflation..... jeeez! That was kind of a summary, i wish i wouldve taken a video or something, it was awesome watching her try to talk around this question and focus on her not liking bernanke, she said so much more but i have a shitty memory. lol Discuss
I wanted to keep going but class ran out of time, I felt like a dick after i laughed at her but wtf did she expect, she obv didnt expect anyone with any actual knowledge to be in there. I literally lost all respect (the little i had) for this women when she said the debt wasnt a problem my jaw literallly fell open and i just laughed in astonishment that one of the leaders from my community was so ignorant about this issue. WHen i asked the question the prof sat on the edge of his seat and looked really interested in what she had to say lmao, probly the most fun ive had in a while... (i know sad life)
I dont completley understand all of this cheap money shit but if congress were in charge of printing our money rather than a private bank, wouldnt their be no interest at all? jw i'm probably dead wrong.
Here's a good article on it as far as the Congress question, I have no idea. I think they'd probably keep the interest rates low because most of them are retarded. Inflationomics.com - Keeping Interest Rates Low
BUt what im wondering is if our money supply wasnt controlled by a private bank, would there be an interest rate still? as our gov't would be printing money, or would it work the same way, idk
The Treasury could directly print money and spend it into the economy and leave interest rates for the market to decide. I would think a situation like that would tend to raise interest rates somewhat depending on how much money printing is being done. Borrowers would want higher rates to compensate for the debasement.
So you're saying we are buying money??? and I know its not YOU but the government/FED that are saying this. Does anyone else see how stupid this is?
I don't see your issue. Interest rates are a price, the price of borrowing money. If rates are low, the price of borrowing is low, or cheap.
Are you serious.... borrowing money from who?? the FED? how do they have more money than the government? I dont think YOU understand fiat money, in that it comes from no where and has no value... So Im asking again, WHY are we buying money??
I think I misunderstood you. It seemed like you didn't understand why interest exists at all, in the general sense. As far as government goes, to the extent that it spends money, should come only through taxation of some tangible, equitable, obvious sort. It should never spend beyond that amount, either through money printing or by borrowing. It also shouldn't possess the power to print money at all, other than minting coins if it so chooses to compete with other currencies on the free market. That's my ideal, given that a government exists.
Lets dedicate this thread to ppl goin out and asking your local politicians tough questions! do it, post your results i hope ppl actually do this it would be interesting as fuck