The Federal Reservations

What is the federal reserve? Honestly, most people don’t really know. Most have only heard the name, if even that. Why does such a secretive institution get so much power? I’ll post some good music videos soon, but I must now address this important issue:

This is why Ron Paul is presenting a bill to audit the Fed. The only major reason why we shouldn’t get more info on them is, according to the Federal Reserve’s own representatives, is because it would undermine their “Independence.” Proponents of the bill have said that in this case “Independence” is nothing more than a codeword for secrecy.

So let’s clarify: There’s a difference between wanting information and wanting to make decisions. If the bill was that the Fed’s decisions were subject to congress’ approval, that would undermine their independence, but that’s not what we’re talking about.

The bottom line on this bill: Why not? It’s not going to undermine your independence to just tell us what you’re doing.

In a greater context: Milton Friedman, recipient of the prestigious Nobel Prize in Economics for his work on monetary policy:
“I’ve always been in favor of replacing the Fed with a computer.” (Jim Powell. FDR’s Folly. New York: Three Rivers Press, 2003. p 272.)

So, after analyzing centuries of the Fed’s work, Friedman concluded that a computer could have done a better job. Pretty tough stuff. I agree.

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Gross National debt.

I think the gross national debt is well… gross. I find it disgusting that politicians think it’s ok to spend money on our problems and make our children pay for it. That is just wrong.

Some of you may have noticed that I added a Gross National Debt counter on the top of my page. I am incredibly surprise by the rate that it is growing. I literally see tens of thousands of dollars disappearing right before my eyes. The Gross National Debt is, at this second, .

So, why is borrowing so popular among the Feds? Well, first off, because it’s popular among the people. We need to realize that the first problem with debt lies not with politicians, but with the public. To date, the average American has more debt than savings.

The second major reason that debt has increased is that it is probably the only major way government can create short-term economic growth. Instead of taking money from one area of the economy and giving it to another, government borrows money from the future. It’s not much, but it lasts until the next election.

Now, I’m not all gloom and doom. There is a way out. There are three ways, in fact, to reduce debt and each come with their set of problems. They are to print money, to stop spending, and to start taxing.

I personally propose a three step process. This works for both individuals and governments.

STEP 1: Stop borrowing. It is NOT FAIR to make our kids pay for our mistakes. We ought to live with the consequences and not have a pity party. Ye, it’s harsh; live with it.

STEP 2: Reduce spending. PEOPLE: I don’t care if you’re conservative, liberal, or whatever. I don’t care whether it’s as important as social security, babies without doctors, or terrorists running around in the sand with nukes: IF YOU CAN’T AFFORD IT THEN DON’T BUY IT! Pretty simple.

STEP 3: Pay off the debt. We ought to use surplus money, (some of which will come from taxes, yes, it’s a crisis, Mr McCain.) to pay off this astronomical debt before it gets worse.

Our top priority IS NOT the state of the economy. It IS NOT national security. It IS NOT health care for everyone. It is the future. It is our children. We should stop having a pity party about how high inflation and/or taxes are, and start looking to what kind of mess we’re leaving future generations. STOP THE GROSS DEBT!