Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: George Acton who wrote (85820)	11/24/2000 8:55:26 AM
From: Freedom Fighter	Read Replies (1) \| Respond to of 132070

George, "My view" that Central Banks, the IMF, etc... are socialist institutions is an extremely long conversation. I'll try to sum it up. I hope I don't leave too much important stuff out. I understand your point about the role of the Fed in not allowing the excesses of capitalism to bring down banks and hurt innocent bystanders. But in general, I think the excesses we are talking about are in large part due to weaknesses in the monetary system to begin with (The Fed's role). Money and credit essentially come from "thin air" and are not necessarily closely correlated to the growth in economic activity and the increase in capital. (I don't have a solution in mind) Bailouts (either direct via the IMF or indirect via the Fed) spread the risk of loss throughout society instead keeping it with those that made the bad economic decisions. Taxpayers fund the IMF. Printing money in excess of economic needs results in a sort of backdoor wealth transfer. IMO this sort of risk spreading is a socialist activity. Aside from its wealth transfer role in terms of bailing out Wall St., the Fed is also a wealth transfer mechanism for Government. Traditionally, during a war effort, the Federal Government is unwilling to raise taxes to the level necessary to fund its activities. So it prints the money. There are capitalists out there that love capitalism when they are winning, but enjoy a little socialism when it helps them too. :-) All this ecourages reckless behavior. I think the whole system is very flawed, but we would have to reform the monetary system before we could get rid of the bailouts. Wayne