Wouldn't the Fed have a lot more to do with it than BHO? Hasn't the policy of the Fed been pretty much the same since 1987? I know it's easy to blame Obama, but the policies has been in place for decades. The weakness of the dollar alone does not account for the rise in oil prices. Look at charts for $WTIC and $USD.
Gas Prices
- Thread starter moreluck
- Start date
Wouldn't the Fed have a lot more to do with it than BHO? Hasn't the policy of the Fed been pretty much the same since 1987? I know it's easy to blame Obama, but the policies has been in place for decades. The weakness of the dollar alone does not account for the rise in oil prices. Look at charts for $WTIC and $USD.
UPS Lifer
Well-Known Member
We see what we want to see on the left - middle and right. I blame BO because - as president, he is the "leader" of his party. Failure to get a budget and reduce spending has created the need to print more money. The Fed does not print money. The Treasury prints money which is run by Timothy Geithner who works for BO and runs the Treasury for BO. The Fed creates distribution policy. My quote says "one of the chief components" not the only component. If we reduced our spending and deficit we should be able to pay our debt without creating more money which is inflationary. Oil and interest rates are the first areas affected by printing more money. The Fed is keeping interest rates artificially low because of the fragile economy but oil is not regulated by BO.
1200 days and counting without a budget. The Senate led by a BO kool aid drinker won't bring a budget to the floor. BO does not know how to make Congress work together. He is more concerned about driving the parties and ideologies apart.
The evidence is in the posts on this website. The right and the left are tearing each other apart instead of working together. It is a complete blame game on both sides. On the Hill, it takes LEADERS not talkers or campaigners to work together.
wkmac
Well-Known Member
Lifer,
In one respect, it is true that the Treasury and not the FED prints money but paper money in some respects is not the greater portion of the money being created. Most money is nothing more than a book keeping entry as a result of fractional reserve banking. Some economists argue while others fully admit this money is mostly a fiction, why some like economist Murray Rothbard advocated ending the privatized monopoly of the Federal Reserve and nullifying this book entry debt. Although I agree with Rothbard I don't see this happening for a variety of reasons but in the meantime, it would do well for the public to understand what the real process is when the Federal Reserve actually creates money which in truth is nothing more than monetized debt. A great read towards that end IMO is the Federal Reserve Bank of Chicago's booklet, Modern Money Mechanics. Regardless of what one thinks of the FED or what should be done with it, this booklet educates the reader on how most money is really created and the Treasury has little to do with it.
Page 3 under the title, "Who Creates Money"
Now read the rest if you dare!
In one respect, it is true that the Treasury and not the FED prints money but paper money in some respects is not the greater portion of the money being created. Most money is nothing more than a book keeping entry as a result of fractional reserve banking. Some economists argue while others fully admit this money is mostly a fiction, why some like economist Murray Rothbard advocated ending the privatized monopoly of the Federal Reserve and nullifying this book entry debt. Although I agree with Rothbard I don't see this happening for a variety of reasons but in the meantime, it would do well for the public to understand what the real process is when the Federal Reserve actually creates money which in truth is nothing more than monetized debt. A great read towards that end IMO is the Federal Reserve Bank of Chicago's booklet, Modern Money Mechanics. Regardless of what one thinks of the FED or what should be done with it, this booklet educates the reader on how most money is really created and the Treasury has little to do with it.
Page 3 under the title, "Who Creates Money"
Now read the rest if you dare!
UPS Lifer
Well-Known Member
Wkmac,
I wanted to know how the FED worked so I did research some years back to get a better understanding. It is fascinating as to how it works and very complicated. Most people don't really understand the Fed and how it works and I think that is a conversation better left to the financial and economic geniuses.
On that note, I agree entirely with your post and you did a good job of explaining it. Thank You.
BUT - The primary role (very simply) is the Fed is an entity used as a buffer and to keep our monetary system, economic system and employment stable to eliminate panic which could create runs on banks as well as uncontrollable inflation. Because Fed interest rates are virtually 0 (.15%) - It is my opinion the buffer has been reduced dramatically. They are weaker because they can't really adjust the interest rate much right now which reduces the Fed's ability to control the monetized debt.
My opinion is that if you throw too much US money into the system it weakens the $ and creates a higher international oil price because oil is traded in US $.
It is also my archaic opinion that paper money should be backed by gold and silver. This is pie in the sky thinking! Unfortunately, we have long past that threshold.
I wanted to know how the FED worked so I did research some years back to get a better understanding. It is fascinating as to how it works and very complicated. Most people don't really understand the Fed and how it works and I think that is a conversation better left to the financial and economic geniuses.
On that note, I agree entirely with your post and you did a good job of explaining it. Thank You.
BUT - The primary role (very simply) is the Fed is an entity used as a buffer and to keep our monetary system, economic system and employment stable to eliminate panic which could create runs on banks as well as uncontrollable inflation. Because Fed interest rates are virtually 0 (.15%) - It is my opinion the buffer has been reduced dramatically. They are weaker because they can't really adjust the interest rate much right now which reduces the Fed's ability to control the monetized debt.
My opinion is that if you throw too much US money into the system it weakens the $ and creates a higher international oil price because oil is traded in US $.
It is also my archaic opinion that paper money should be backed by gold and silver. This is pie in the sky thinking! Unfortunately, we have long past that threshold.
moreluck
golden ticket member
I had no idea that our monetary infrastructure was under the eye of Secret Svc.
The mission of the United States Secret Service is to safeguard the nation's financial infrastructure and payment systems to preserve the integrity of the economy, and to protect national leaders, visiting heads of state and government, designated sites and National Special Security Events.
The mission of the United States Secret Service is to safeguard the nation's financial infrastructure and payment systems to preserve the integrity of the economy, and to protect national leaders, visiting heads of state and government, designated sites and National Special Security Events.
wkmac
Well-Known Member
Secret Service was created by Lincoln in 1865' as a division of the Treasury for the purpose of monetary police. At the time 1/3 of the money in circulation was counterfeit and the role of the Secret Service was to police that. Their role as protecting the President did not come into play until after the McKinley Assassination.
Lifer,
I'm not a bullionist per se but I do agree a currency should be pegged to a backing commodity of value and historically gold and silver has served that task and quite well.
wkmac
Well-Known Member
Oil is backing the dollar and that's not working to well!
Exactly. And there's is ample reason gold and silver no longer back the dollar.
wkmac
Well-Known Member
Yeah, the first world nations realized that most of the world's gold was located in 2nd and 3rd world nations!
moreluck
golden ticket member
Still over $4 here.....do I start cheering now ????
You can in about 14 days when its under 4 bucks, cling on to hope MORELUCK, you got 14 days left of 4 dollar gasoline!
Peace
TOS
Gas is dropping in my locale. Those of you who choose to live in States that have their own unreasonable tax structures have no one to blame but yourselves. You voted them all in.
GAS at the pumps DOWN again! The OC is ever so close to sub 4 bucks! Only about 12 days to milk the pain of 4 bucks!
Gee, what happened to 5 buck a gallon gas FOX SPEWS was saying was going to happen??
Looks like I was DEAD ON back in January. I said gas will spike in the 1st quarter, then retreat after earnings. Sometimes its tough being right.
PeAce.
TOS
Gee, what happened to 5 buck a gallon gas FOX SPEWS was saying was going to happen??
Looks like I was DEAD ON back in January. I said gas will spike in the 1st quarter, then retreat after earnings. Sometimes its tough being right.
PeAce.
TOS
