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Politics : The Obama - Clinton Disaster -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (26198)	2/16/2010 7:02:42 AM
From: Real Man	Read Replies (1) \| Respond to of 103300

Hard to say objectively. While folks are looking at the Fed in the context of American history, Central banks were created all around the world around that time frame or earlier (late 19-th century/early 20-th century) in order to have greater flexibility in fighting banking panics, which essentially means the flexibility of printing money. Most of the developed globe borrowed the legal system from the Brits at that time, since they were the Empire. Banking crises existed while the globe was on hard money gold standard, but allowing some institution or the government to print money necessarily creates the potential for abuse of the process and corruption. The global problems don't come from the Fed. In some sense they appeared because of the collapse of communist block. The influx of cheap labor to the global markets has resulted in lowering of the standard of living in the developed world, a process that will likely continue. You can call this "depression" in G7 countries, even though the globe as a whole will continue to grow. Capital flows freely to where it's cheaper to deploy it, and borders in the global financial systems were essentially eliminated.