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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: BGR who wrote (72287)	12/23/1999 3:59:00 PM
From: Freedom Fighter	Read Replies (2) \| Respond to of 132070

BGR, >>That the economy has almost always prospered under this Fed is something that you ignore.<< I believe the story of "this" Fed is still being told. There is a lot of ruin in an otherwise great country filled with hardworking people. In the mid 80s they thought the BOJ was great and in the mid 20s they thought the Fed had concurred all. Time will tell about AG.com. Personally I think he will be judged extremely harshly when it's all said and done. >>So, let me ask you this: what IYO would be a better monetary system and why?<< It would have these general features. The amount of credit extended would be roughly equal to the amount of savings available. Savings could take various forms. (risky and not) The increase in the money supply would be related to the increase in production via some free market control. (no Fed or fiat bank credit) This would eliminate the significant misallocations of credit that have caused booms and busts of various sizes and types and subsequently caused the bank runs of the distant past. Non-risk Savings would be backed, misallocations would be kept to a minimum, capital would be available, inflation would be relatively stable, recklessness would be punished etc... It won't happen because under this system the government can't inflate instead of tax and Wall St and Bank profits would have to be earned. Wayne