Why do we need all these centralized institutions?
Absorb any physical currency functions into the treasury dept, require banks to store their own reserve currencies, and states can regulate the policies of the banks that operate within their borders.
The rate of unemployment shouldn't be a concern of the federal government.
If the executive had more control you'd have a situation similar to Arthur Burns or Jpow with Trump. Congress would be even worse considering they are split.
Or just leave it autonomous like it is and slap Jpow so he'll be more heavy handed.
You guys have only had a Federal Reserve since 1913.
Before that you had individual banks exposing themselves and collapsing - since then, the Fed has worked to broaden the risk so that when one goes, everybody goes.
I'm not sure that's a better system, personally.
It appears to be the antithesis of making the component parts of your financial system small enough that the failure of any individual one can be tolerated. Since 1913, the US seems to have been diligently working towards a system where the taxpayer - being the only entity in this entire diagram that's allowed to be landed with the bill - is regularly shafted as ever-more parts of the system become "too big to fail"
Humanity has gone eight thousand years without that 'power', and we made it here just fine. I'm not sure the last 100 was anything particularly special that we'd want to replicate.
Doesn't account for when you have to adjust rates to handle different economic cycles.
Who has to adjust which rates?
If we're talking interest rates, that would be something each bank would have to assess for themselves, taking into account that bank's circumstances. Not sure what other rates you'd be talking about...
Dunno. Was playing devil's advocate because I mentioned abolishing the fed to a friend and I don't think I made a good argument, so I wanted to see what this forum would say in response to some of the things he said.
Unfortunately, the Fed probably won't be abolished anyway since no one in Congress views this as an issue.
What would you replace it with?
Statement: Abolish x institution
Why
State rights or something along those lines
Okay, what's the alternative?
Why do we need all these centralized institutions?
Absorb any physical currency functions into the treasury dept, require banks to store their own reserve currencies, and states can regulate the policies of the banks that operate within their borders.
The rate of unemployment shouldn't be a concern of the federal government.
Point to note: banks even used to mint their own notes.
If the executive had more control you'd have a situation similar to Arthur Burns or Jpow with Trump. Congress would be even worse considering they are split.
Or just leave it autonomous like it is and slap Jpow so he'll be more heavy handed.
You guys have only had a Federal Reserve since 1913.
Before that you had individual banks exposing themselves and collapsing - since then, the Fed has worked to broaden the risk so that when one goes, everybody goes.
I'm not sure that's a better system, personally.
It appears to be the antithesis of making the component parts of your financial system small enough that the failure of any individual one can be tolerated. Since 1913, the US seems to have been diligently working towards a system where the taxpayer - being the only entity in this entire diagram that's allowed to be landed with the bill - is regularly shafted as ever-more parts of the system become "too big to fail"
Okay so we go to back to a system of private banks. Doesn't account for when you have to adjust rates to handle different economic cycles.
Humanity has gone eight thousand years without that 'power', and we made it here just fine. I'm not sure the last 100 was anything particularly special that we'd want to replicate.
Who has to adjust which rates?
If we're talking interest rates, that would be something each bank would have to assess for themselves, taking into account that bank's circumstances. Not sure what other rates you'd be talking about...
Dunno. Was playing devil's advocate because I mentioned abolishing the fed to a friend and I don't think I made a good argument, so I wanted to see what this forum would say in response to some of the things he said.
Unfortunately, the Fed probably won't be abolished anyway since no one in Congress views this as an issue.