Should the US give more than 50 billions to Egypt when Egypt can't create economy?

Do your share, dump dollar. Good for your financial wellbeing too

 

So who exactly is in charge of monetary policy?

So where did this additional money come from? Who "created" it? How did it get into the system?

Remember that a dollar is a fixed unit of measurement, that fluctuates it's value and buying power by a number of affecting factors. But more money, that's the mystery my friend. If real GDP is up, where are these "new" dollars coming from? We both know that as the money supply increases, it dilutes the value of a dollar, which would correspond with the growth in "real" (sic) GDP. The GDP increase is a red herring.

Bogart, feel free to chime in.

 

The Fed is which is independent of politics.

There are essentially two ways that money is directly created:
1) Outright purchases done in open market operations by the Fed
2) Commercial banks making loans
The adjustment of discount rate and required reserve ratio affects the banks' lending decisions and are not components of the direct creation of money.
In any event, GDP has outpaced inflation in the long run.

 

How is the chairman of the Fed selected?

http://en.wikipedia.org/wiki/Federal_Reserve

This is incorrect.

I recommend you do a little more reading on the topic.

http://en.wikipedia.org/wiki/Money_supply#United_States

 

The decisions made by the Fed are still independent of politics.
Are you one of those people who state that the Fed is privately owned? You'd better make your stance clear.

How is that inconsistent with what I said? I suggest that you do some real reading, and not cherry pick from wikipedia articles.

Put it in your own words. How am I wrong?

 

Do you know who owns the Fed? If you do, please let the House Committee on Finance know. They would love to have that info.

Do you or do you not agree with the following?

http://www.mises.org/story/2728

 

No one owns the Fed, so there's your answer.

When the Fed buys government securities, it credits the primary dealer's account. Sure, that's an outright purchase in an open market operation. I already made that point.
Commercial banks can create money by making loans. I covered this as well.

So show me where I'm wrong again? Can't you make arguments in you own words?

 

Hmm, I hope the intention of this thread wasn't to show that the DP population wants to cut Israel's funding but keep funding Egypt. If that is so, your clever thread has failed, because it's not just Israel we don't want to fund, it's ALL these countries. The votes clearly explain such.

Perhaps this thread was created with different intentions than that; I can't imagine what they were though.

 

Indeed you did, and made my point in the process. The creation of money by banks, is fiat currency. It is done arbitrarily, on a for profit basis, with numerous ways to circumvent the need for adequate reserves. This leads to a devaluation of dollars in the system. We're in such a cycle right now. Look at exchange rates and REAL inflation, not the bogus numbers they provide that does not include energy or food costs. We all know that food and energy have skyrocketed since the war.

Again?

 

My sarcasm detector isn't working this morning, so you'll have to tell me whether or not any existed in that comment. If not, you better look at the numbers. The oil reserves in ANWR and the Gulf of Mexico will not come close to lasting us hundreds of years, especially if we're pumping at full capacity.

 

The stock holders would probably disagree

 

The US has been sending aid to Egypt to keep them from being a provocative force in the Middle East.

Essentially, it has worked over the last number of years. Egypt is one of the least provocative middle eastern nations.

It is a dangerous and risky deal, no doubt. The nation is a despotic tyranny. It is typically controlling of its population. It is a breeding ground for terrorists from within the population. It is potentially stronger and more dangerous.

As the US makes its moves in the middle east, Egypt doesn't move in lockstep with the US. None of the Islamic nations that receive US aid move in lockstep with the US.

It is another miserable element of the middle eastern condition.

The primary non-government alternative throughout the middle east is toward radical fundamentalist Islam. The result of that is ever more radical Islamics.

I'd suggest that our financial efforts should go toward creating more education, more general widespread economic benefits that would create a more solid, financially sound, less radical population.

That probably would scare the existing governments though.

Its a sh1tty alternative however you look at it.

 

I completely agree.

 

Commercial banks were able to create money before 1913, so your point has nothing to do with the Fed.

 

The shareholders are the member banks, and Federal Reserve stocks are not like stocks issued by corporations. You can't sell them, and they don't go up in value.
Federal Reserve stocks only represent membership and not ownership.

 

I don't believe we should give to either Egypt or Israel

 

Who created money between 1836 and 1913?

They do however earn dividends based upon volume of "business".

 

Cool, so you were able to interpret the HUGE hint I left about this being a parody? Because up till that point, people were pretty silent. Then when they realized it was a simple test of hypocrisy, everyone started rushing over to be heard.

I found it flattering, myself. Quite revealing too.

I'm also very impressed with how RTG is taking guerilla to task on the Federal Reserve System. It's refreshing to see someone debate on pure facts, rather than biased assumptions for a change. Nicely done, RTG!

 

I just told you that banks were able to create money prior to 1913.
Here, if you must know, I'll give you a brief overview:
After 1836, free banking system was in place. Then there was the Civil War where Lincoln issued greenbacks. This is in relation to the National Banking Act.
Banks were unstable, and the 1907 panic occurred, so the Federal Reserve was put into place in 1913.

No, they earn a flat dividend of 6%. This is stated in the Federal Reserve Act.

 

ya, the US dollar is getting weaker and weaker everyday here in Russia too.

In the beginning of the year one dollar was around 30 roubles, now it's even under 25 and going downwards.