1) The Fed should create the outcomes such that their predictions were wrong
2) While also just having a bad interpretation of data to begin with
3) The Fed is only imagining that its toolkit can cause a specific outcome for economic growth, but it cannot cause humans to transact a certain way or predict what a large group of humans (or large pool of capital) will do. No economist can, and the other economists don't have an infinite balance sheet to try to influence it either.
4) The Fed was never asked to or mandated to do the things it does to stimulus the economy. (Caveat, the stimulus bills in 2020 are a major exception). The Fed just notices that nobody can stop it. Similar to the Supreme Court realizing that and testing it in Marbury v Madison. Congress lacks consensus on it and everyone is afraid of the alternative (Congress having to deal with monetary policy themselves, politically).
The Fed chair saying "we're fucked" is, on its own, enough to cause a credit crisis. (This is why the Fed doesn't tend to make blanket forward-looking statements like "everything is just fine.")
Either the fed is powerless to stop the economic crisis we've suffered, or they're too incompetent to manage them. Either way it looks like they need dissolved.
Also note [2]:
"In 1913, this problem was addressed by the creation of the Federal Reserve System (Fed).33 The Fed was to remedy the situation in a two ways. First, it would provide a means by which banks could borrow in times of stringency to satisfy their customers’ demand for cash. Second, it could create a new form of money, Federal Reserve notes, which could be expanded or contracted in quantity to respond to the need for more cash."
"The creation of the Federal Reserve had little if any effect on the gold standard. The dollar was still defined in terms of gold. Federal Reserve notes were redeemable in lawful money. The Fed not only operated under the gold standard, but was charged with maintaining it, and kept a percentage of gold cover for its notes. Gold still dictated the value of the dollar. "
[1] https://www.federalreservehistory.org/essays/great-depressio....
“ Because the international gold standard linked interest rates and monetary policies among participating nations, the Fed’s actions triggered recessions in nations around the globe.”
That’s what I was alluding to, sorry for not being clear :)
>the Fed's actions triggered recessions
I don't think this strengthens the case for justification of the fed.
It's like people who ask why they need to be vaccinated for polio now that there's very few cases of it.
False, false, and false.
"Despite the creation of the Fed, a wave of bank runs resulted in massive bank failures over the period 1930-1933."
People are going to manipulate things in their favor as much as they have the power to do so. Oligarchs in America and elsewhere have the most power, and thus do the most manipulating. Also, it's no secret that the vast majority of wealth is concentrated in the hands of a few oligarchs.
That's the easiest way to dismantle that particular grand conspiracy.
The most pragmatic approach is to understand that they don't rely on voting to get their way. But they absolutely compete for resource appropriation and their special interest. It is better if they act like gods of their particular domain or sector, so they can exert control over just that and not compete. But it also reinforces that they cannot and do not coordinate much together.
When I was in France, there were people super passionate about being sure I knew about the fraternities that control the world and the supporting conspiracy documentaries with ominous music for 2 hours, except these ones were french ones based in Paris
So are these greater or less than Bilderberg
What about the Trilateral Commission
ALEC
Fuck, the Lizard People