Is the Federal Reserve an Evil Secret Banking Cartel?

Question

I believe the Federal Reserve prints paper money at rates which far exceed the increase in wages and investments, thus stealing wealth from us via inflation (i.e. causing prices to rise faster than our wages & investments). Give you a money printing press and you will steal wealth and be put in jail for counterfeiting. Why allow bankers to?

My main sources:

http://answers.yahoo.com/question/;_ylt=AglxAiMq6pxZiVHj7sGuQPlIzKIX?qid=20060620132028AAlHLz8
http://www.kitco.com/ind/Fekete/jul262006.html
http://worldnetdaily.com/news/article.asp?ARTICLE_ID=50935

My related sources:

http://answers.yahoo.com/question/index;_ylt=AvkqcuPfKpYVQETF222Ivv_sy6IX?qid=20060801100650AA97zce
http://answers.yahoo.com/question/index;_ylt=Avk1ES6aHmMqcV9fnb_M2b3sy6IX?qid=20060801090740AAVq3t4
http://answers.yahoo.com/my/profile;_ylt=AuQG_2kWS7N_LYDn0BqHaMbsy6IX

If you disagree, please provide some factual sources which clearly prove that the Federal Reserve is not what I say it is.

Did you know the evil bankers were even emboldened to put their evil intentions on the backside of the $1 bills?

http://jasonhommelforum.com/forums/showthread.php?p=1301#post1301

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Giggly Giraffe, the phrase "print money" isn't restricted to the literal interpretation, as the Fed can create all the derivative forms of electronic money that are embodied in M3 through direct and indirect means under their control. Try again.

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The Federal Reserve lies about CPI. The true inflation is running about 7 - 10% per year:

http://kitco.com/ind/Willie/jul282006.html
http://www.kitco.com/ind/benson/jul312006.html

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crbeach,

You seem to ignore what I wrote before:

"...the phrase 'print money' isn't restricted to the literal interpretation, as the Fed can create all the derivative forms of electronic money that are embodied in M3 through direct and indirect means under their control. Try again..."

Using M1 as total supply of fiat is rediculous. Try using the total value of all derivatives, which is approaching $400 trillion.

Yes it would be nice to gain some new information, but so far all answers are pitiful arguments that have to be dismissed as ignorant of the question.

Answer 1

Congratulations, Robot, you've found me.

It is of little consequence that you've been successful. Vertitatum is "truth", and nominative truth at that. You have found me. And far too late to stop anything.

The Federal Reserve is not the problem - it's filled with academics and financial minds, minds too brilliant to allow to decay on Wall Street. Here they are, doing their work producing charts and data to make the financial world ever more complex. No one understands how much of an illusion it all is.

That's right, the 'Fed' as Robots love to moniker it, is nothing more than a distraction.

But we're ahead of schedule. By the time the masses believe it, it will all be too late.

I'm delighted that we've played our game this far. But tell me, who REALLY has the power to make money.

I don't say print. Printing money is of no consequence. It merely represents the true currency - the idea that is behind money.

There is more currency whenever the amount incinerated fails to meet the amount printed in a given day.

The Federal government only PRINTS money. Who makes the REAL money?

Think about it, little one. Think about who can take $1,000 and within minutes make it $1,960.

Think about who REALLY owns the property that so many Robots live in.

There you will find your answer.

And if you find it, I'd be happy to answer a question for you.

Answer 2

The feds mandate is to maintian economic growth while ensuring a stable price level. Now, inflation is 'natural' and considered a good thing at low levels (2-4%) you don't want the opposite which would be deflation a la the great depression. Now above 4% and you may have a problem. But consider the alternative, the fed does not generate enough M. High interest rates result, interest sensitive consumption falls, eventually buisness investment falls, and bam you end up in a depression. The Fed may be robbing you of 2% as inflation rises but thrown into a depression I am sure you have a lot more to lose.

Answer 3

Three Definitions of Money:

M1: Currency outside banks + demand deposits at banks + other checkable depostis at banks + travelars checks.
The Federal Reserve Board can only control M1 through the printing process. M1 less than 10% of the USA money.

M2: Add small-denomination time deposits + money market deposit accounts + passport savings + money market fmutual funds shares + bank overnight repurchase agreements + Eurodollars. Of this equation, the Fed can only control the "Bank overnight repurchase agreements" by increasing or decreasing the interest rates ... contrary to popular belief, this interest rate increase/ decrease does not influence mortgate rates or credit card rates ... just simply what the banks can charge each other for floating $$$. M2 is about 40% of the money supply.

M3: Add large-denominations ($100,000.00 USD) time deposits at all depository institutions + bank long-term repurchase agreements. The Federal Reserve has little to no powers to influence M3 ... M3 is about 50% of the money supply.

So, that blows you're theory out of the water since M1 is less than 10% of the USA money supply.

Answer 4

Its clear your question is motivated by an agenda and a desire to debate, rather than a genuine interest in acquiring knowledge.

So be it...

Let's check your arithmetic comparing the printing of money to household income.

Total currency in circulation: $792 Billion
Total Income: $5,091 Billion (2004)
Rate of increase in the Money supply (M1 delta from July 2004-July 2005): +$26B
GNP: $11 trillion

Note that the currency in circulation is about 15% of total household income, hardly what you would expect if the printing of money far exceeded wage increases.

Or that the increase in the money supply last year was less than 1% of the GNP.

More fundamental is your misunderstanding of how the money supply increases, and the role of paper money..

In our economy, the money supply is not increased by the printing and distribution of money. When the Fed sends currency to a bank, it is because the bank is drawing down on its Fed deposits of equal amount, or replacing worn out bills. There is no net change in the money supply by that action.

The primary action of the Fed that affects the money supply is the buying and selling of securities by the FOMC. Other actions include adjusting of the Federal Funds rate, and bank reserve requirements.

The Fed has lots of ways to adjust the money supply but 'printing of money' is not one of them.

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Amendment:

You may want to consider changing venues.

Your desire to debate this issue would best be served at one of the many discussion forums on the web. Example: http://groups.google.com/groups/search?hl=en&lr=&safe=off&num=100&q=Federal+Reserve&safe=off&qt_s=Search

Answers.yahoo.com is not stuctured for the give-and-take interaction you seek. It is more appropriate for posting of specific questions looking for concise answers.

Answer 5

Didn't your parents ever tell you money is no longer real? Wow! you probably believe in Santa and the Easter bunny too.