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Friday, May 16, 2008

 

The Fed messing around with the economy

I used to believe that the Fed was doing more good for the economy than doing it harm. I'm starting to question these thoughts now. How is the the Fed's impact on the economy by changing the money supply and interest rate going to help? It's natural to have times of economic growth and have times of economic recession. That is just all part of the economic cycle. Now the argument has been made that the Fed minimizes the volitility of this cycle to prevent an extreme recession.

Now this is a worth-while goal but can it really be accomplished? When the Fed keeps printing money and lowering the interest rate I just see more problems for us in the future. Many are starting to surface now. I agree with those who would say that money is a commodity and needs to be protected. If the Fed just keeps printing money for all the spending the U.S. does there will be negative consequences in the future. The consequences we are facing now were long coming.

The Fed is unconstitutional and I have even heard some conspiracy theories about the beginning of the Fed. There was never intended to be a power like the Fed in our country. I'm afraid that we will suffer some of the consequences for what the Fed had done in the past. The recession that we have had building up for a while could be coming.

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