Friday, January 30, 2009
End the Fed
The current economy’s crisis is a very large event cascade. Starting with bad subprime mortgages that lead to bank closings to a myriad of other problems, this crisis is a case of, “if it’s not one thing, it’s something else.” People are searching for a panacea-like quick fix to this giant mess.
People in the
The best way to fix this problem is to let the current system fail and let the invisible hand of the free market system, with oversight, recover the economy. The Federal Reserve has been lowering interest rates to near zero and pumping large amounts of cash into the economic system in hopes of getting banks to start lending again. This paper money has no intrinsic value so the more of this fiat money that is put into circulation, the less the value will be. This will inevitably lead to inflation. Actually, the
Federal Reserve is the only reason there is inflation.
I say get rid of the Federal Reserve, or at least put it under government control. There’s no reason that a private bank should control the printing of our government’s money.
Now, substitute the value of a dollar and compare them with flat screen televisions. As we release more and more into a market that is refusing, the value on our dollar is getting lower and lower. In economic terms, it is an inflation tax. And while we are not paying any money directly to the govt, the value of our dollar is depreciating.
And another problem, we outsource everything. Big America and its businesses have only one thing in mind, and that is individual profit. Why rely on Americans workers that would require more than minimum wage pay when you can ship your job oversees and get it done for a fraction of the cost?
That has been the way of American business for quite some time, and now it has caught up with us. Instead of those jobs going to Americans making our economy much more efficient, we decide to outsource and cut our cost.
<< Home
