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Science Forum Index » Economy Forum » Someone with an academic background in economics explain to
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| Guest |
 Posted: Tue Oct 25, 2005 7:23 pm |
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First off, I'll give you my somewhat fuzzy feeling of what the fed
does.
The fed attempts to "control" inflation or deflation by buying or
selling many many bonds in order to control the money supply at any
given time. For there to be inflation, as I understand it, there must
be a state of accelerating money supply. That is, the treasury
department, starts printing money at a faster rate. WIthout this
acceleration in money supply, there can be no true inflation.
The FED's job therefore is to act as a safeguard for a government that
might be tempted to print too much or too little money. What else can
be said about the FED, in plain language? |
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| Lantern |
| Posted: Wed Oct 26, 2005 2:55 pm |
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Guest
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Good, except be careful with the use of the term "money". I think it is
usually meant to be "credit", ie, "the credit supply" not "the money
supply".
I am not an academic (they have it all wrong) they call credit money. |
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| zzbunker |
| Posted: Thu Oct 27, 2005 4:52 am |
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Guest
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xyzer@hotmail.com wrote:
Quote: First off, I'll give you my somewhat fuzzy feeling of what the fed
does.
The first thing you have to understand about the FED
is that it's primary purpose is to make your
question an oxymoron. Since it ignores ALL,
not only economic, academic input that is not a certain kind
called Supply-Side Laffer-Nomics rather than ecoomics.
Quote: The fed attempts to "control" inflation or deflation by buying or
selling many many bonds in order to control the money supply at any
given time.
But the money supply is not money, and the Treasury
don't own it. So the FED idiot resort to adjusting
corporate taxes rather than money, to create the
illusion and convince the public
that their theory isn't vaccuous and stupid.
For there to be inflation, as I understand it, there must
Quote: be a state of accelerating money supply. That is, the treasury
department, starts printing money at a faster rate. WIthout this
acceleration in money supply, there can be no true inflation.
No. Since the FED created that idea to justify
paying money to build new york skyscrapers
to make people believe that non-existent
things like accelerating money supplies exist.
When actually the only thing that exists
in their idiot theory is Foreign aid to Israel. |
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