Re: Refuting supply-side economics

From: The Trucker (mikcob_at_verizon.net)
Date: 09/30/04 

Date: Thu, 30 Sep 2004 16:30:27 -0700

William F Hummel wrote:

> On Thu, 30 Sep 2004 08:08:58 -0700, The Trucker <mikcob@verizon.net>
> wrote:
>
>>William F Hummel wrote:
>
>>> The reason the Treasury recaptures its deficit spending is to enable
>>> the Fed to maintain control of bank reserves.
>>
>>Oh trauma if the free market determined intertest rates. Oh horror!!!
>>It is time to "un-enable" the Fed.
>>
> Even allowing the market to determine the overnight interest rate (Fed
> funds rate), the Fed would still have to control aggregate bank
> reserves in the same way it does now.

Why? Why not control the reserve requirement as opposed to trying
to control the amount of reserves? And why not have a zero reserve
requirement for fully collateralized loans? Why is it always "the
same way as now" for you?

> Milton Friedman proposed to
> increase the supply of base money at some fixed rate like 4% per year,
> and leave the overnight interest rate to the mercy of the market.

That is also silly. There may be good reason to control the creation
of money/credit in the banking system so as to keep bankers from
defrauding all of us. But there are better ways to do this than the
current methods; ways that do not automatically reward those of
current wealth and station and/or the bankers.

> The
> fact that no country has adopted such a modus operandi should suggest
> that monetary economists around the world understand the issues just a
> tad better than does Coburn, the Innocent.

Nope. It suggests to some of us that the "monetary economists" are in
the pocket of the people that control all the money. And they, like
you, will try to try discredit anyone who disagrees with them as opposed
to offering any real discussion on the matter. 

-- 
"I know no safe depository of the ultimate powers of society but
the people themselves; and if we think them not enlightened enough
to exercise their control with a wholesome discretion, the remedy
is not to take it from them, but to inform their discretion by
education." - Thomas Jefferson.  http://GreaterVoice.org

Relevant Pages

  • Re: Refuting supply-side economics
    ... >> Even allowing the market to determine the overnight interest rate (Fed ... >> reserves in the same way it does now. ... Why not control the reserve requirement as opposed to trying ... >current wealth and station and/or the bankers. ...
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  • Re: Refuting supply-side economics
    ... >> the Fed to maintain control of bank reserves. ... Even allowing the market to determine the overnight interest rate (Fed ...
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  • Re: Refuting supply-side economics
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    ... RSPB invite you to join and get free entry to over 100 reserves ... done by car and they even provide the car parks, ... It is to control a problem population. ...
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