Do we need end the Fed? -----review of the book “End the Fed” Textbooks always tell us that the central bank of a country has an extremely important position and role, especially in times of economic during evident fluctuations. When I browser the news about Chinese Economics, I find the People's Bank of China which is the central Bank in China is similar with the FED. They need to print the money so crazy for maintaining the speed of increasing the GDP. Quoting the news in the Internet, we know the M2 in China will increase 16% in the future. However, the government only pays the attention on the speed of increasing the GDP, missing the inflation. As we know the FED has the important function of maintaining the stable of American economics. Even so, most of the Media only use the good word to illusion the Fed. They little mentioned the negative side of the FED like Money Press. When you control the right of pressing the money, you are unable to reject to press more money. In this condition, the money is not the money. After the Financial Crisis which happened in 2008, the FED had pressed a lot of the dollar to maintain the improvement of Economics. During the period of the time which there are many banks or other financial institutions will be bankrupt. The Fed changes the role in this capital game from a judge to a player. As another economist Merlin Perry said, the Fed does the same things as the AIG or Lehman Brothers. The difference just is the lower leverage and higher the interest rate. Because Professor Merlin Perry thought when the Fed restarted the TALF to support the AAA level of new securities lending, and then start the mortgage-backed securities, and thus start to freeze on the stock market evidence. The FED transfer itself the role in the capital game. But when we overview the whole world, we will find the role of every central Bank had shift or transferring. All of Central Bank become to a last lender in the economics activities. For example, when the Bank of Bahrain had a terrible mistake of investing in Argentina, the Bank of England, the central Bank of England, lend a lot of money to Bank of Bahrain. Another example is the Fed lend to the Citi Bank and Bank of America after the Financial Crisis in 2008. Even though we find the People’s Bank of China never play the role of Lender. But in the China, they have another institution to lend and maintain the stable of Bank, which is called Central Huijin Investment Ltd. It will buy the bad debt and doubtful from the Bank like Bank of China, ICBC. To illustrate, when the Agriculture Bank of China prepares to list, the Central Huijin bought about 300 billion Yuan to reduce the bad debit and doubtful in Agriculture Bank of China. But as an institution to control the stable of economics, if they buy the bad debt or doubtful, where is the money from? The most of Central Bank will have a solution of pressing more money. Then the inflation is appearing. And then in some years, due to the inflation, the economic will stick to mud because the central Bank can’t keep the balance between in inflation and development. So the Ron Paul thinks the Fed is why we have the Financial Crisis. So the author Ron Paul claims that, we need to end the Fed. Because it will bring many problems like bring Wars, change the sense of value for the American Culture. This book End the Fed explains harmful consequences of our monetary policy and fractional reserve banking. In this system, money comes into existence only through debt and is then used to create more debt. There is an over reliance on debt and too much debt can be harmful to most citizens. Why does the Fed resist telling us where the money went that it disbursed in the early stage of the global financial crisis - when a little liquidity allowed beneficiaries to buy any assets at fire-sale prices? The Fed makes funds available for government spending far in excess of what could sustainably
most-favored nation status (amer no longer discriminated when trade w/ br., allowed limited trade w/ Br. colonies in Caribbean)
When treaty sent to senate, terms shock senate, tried to keep secret, ratified, terms leaked to public, repub attack treaty, accuse fed of pro-br., GW approved treaty
Jay treaty help concessions from Sp., 1795 sp. Join fr. Against br., sp. Fear treaty would make amer & br. join to seize Sp. N amer holdings, sp offered to negotiate issues w/ US
GW sends Thomas Pinckney…
Holy cow, I haven’t eaten any beef or any red meat in over thirteen years. When I first saw the topic of this essay to discuss the primary differences between grass fed and corn fed beef. I had thought to myself hmmm I was thinking all cows had just ate grass. I always thought cow’s were slow food because they ate grass but I wondered how so much beef was being produced so fast, but then I thought about all the chicken steroid stories. Cows are ruminants designed by…
paid foreign debt, tax imports -> later became protective tariff
3. Whiskey Rebellion/excise tax – got repealed
4. Hamiltonian v. Jeffersonian philosophy (numerous questions) – loose v strict constructionism later repub v fed, party ideals, fed = $$$$, republicans – pro-french, fed = pro Britain
5. Loose v. strict construction
6. Federalist Party
7. Republican (Democratic-Republican) Party
8. The First Party System
9. the “elastic clause” – loose construction
10. The “Assumption” Bill – national gov…
providing bank services, and distributing currency to finance the entire country. It's fiscal responsibilities included paying government bills, selling government securities, and distributing currency (McDougal 482-483). Currency is distributed when the Fed makes loans to banks; this gets money into circulation. The primary bank is also able to control how much money is put into the economy using monetary policies.
There are three monetary tools that are used to influence the economy. Open market operations…
Fridman’s “America Needs Its Nerds” argues why it is important to not criticize “nerds” for wanting intelligence rather uplift them through their studies. Fridman uses vivid imagery, heavily connoted words, and a fed up tone to develop his argument. These elements help the essay keep on a straight path to the main argument on why we should not have, “values in a society that has only derogatory terms like nerd and geek for the intellectually curious and academically serious.”
Fridman uses lots of…
slow rear as the President urged the private sector, big banks and investors, to assist in the effort to increase homeownership, especially for minorities. After the dot.com crash of the early 2000's, interest rates were at a record low of 1% per the FED, which down the lineexacerbated the ease of loan procurement, because borrwing was cheap. The potential for profit in the housing market was far too appealing, especially with the ruler of the “free world” plugging home ownership all along his campaign…
a week ago was widely seen as a signal that the Fed is preparing to wean the economy off easy money, perhaps sooner than many anticipated. Global stock markets plunged. The bond market pushed yields on 10-year U.S. Treasury notes close to 2.6%, higher than they've been since August 2011. Rates on 30-year fixed-rate mortgages leapt, hitting 4.6% this week, up from 4.1% the week before, according to HSH Associates. Futures markets are betting the Fed might lift short-term rates from zero as soon as…
Fed Split Over How Long To Keep Cash Spigot Open
By JON HI LSENRATH and VICTORIA MCGRANE
WSJ's Global Economics Editor David Wessel and Chief Economics Correspondent Jon Hilsenrath discuss the Federal Reserve's newest concern: The danger that its easy money policies may fuel another financial crisis.
Federal Reserve officials, uneasy with potential risks springing from the central bank's low-interest-rate policies, are split over an early retreat from the experimental programs created to revive…
Current Economic Analysis
Week 7: Personal Assignment
There are Internet questions with this assignment at the end.
You have just inherited $100,000 from your rich uncle Sam. Being the conservative sort, you rush to your local bank and deposit the entire windfall. The reserve requirement is currently 10 percent. What is the immediate impact on the balance sheet of the bank?
Reserve Account = 10% * 100,000 = $ 10,000
Cash Account = $ 100,000- $10…
Macroeconomics Data Report - Part I
Entering into 2015, the United States has experienced a positive economic upswing after its last recession which took place during the housing bubble and endured from 2008 to 2009. Economic indicators compliment on proof that the U.S. economic has shown growth in 2013 and 2014. Economic gauges such as Index of Leading Economic Indicators (LEI Index), Real Gross Domestic Product (Real GDP), Consumers Price Index (CPI), the unemployment rate, and other supplementary…