Do High Interest Rates Fix High Inflation?

Re:Do High Interest Rates Fix High Inflation? by netbioserror on Tuesday June 13, 2023 @11:24PM (#36321051)

Broken legislative system? Not only was it designed to lock up in a split-Congress scenario, it was also explicitly given the responsibility of minting coinage and the Constitution was written silent on the issue of a central bank (which via the 10th Amendement thus is prohibited to the federal government and reserved to the states). The debate on the very nature of the country's money goes back to its founding. But here you are making very European assumptions about the role of legislature and central banking.

You're free to advocate for those roles, but don't conflate the circumstances with dysfunction. An active legislature and the Fed's existence are diametrically opposed to the federal government's principal design.

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Re:Do High Interest Rates Fix High Inflation? by adsfgiodsnrio on Tuesday June 13, 2023 @11:41PM (#36321143)

Call me a heretic, but the Holy Founding Fathers were not infallible. Yes, even Lord Washington, praise be unto Him, erred. Perhaps even Jefferson Christus!

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Re:Do High Interest Rates Fix High Inflation? by zeroonetwothree on Tuesday June 13, 2023 @11:44PM (#36321170)

It's a pretty far-fetched argument that the federal government doesn't have the power to create a central bank. Who are you to argue against John Marshall?

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Re:Do High Interest Rates Fix High Inflation? by tastyfreeze on Wednesday June 14, 2023 @12:31AM (#36321483)

The Constitution says they don't. The US government only has the powers explicitly granted to it in the Constitution. Creating a central bank isn't one of those powers.

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Re:Do High Interest Rates Fix High Inflation? by netbioserror on Wednesday June 14, 2023 @12:20AM (#36321411)

It's pretty far-fetched to argue that any person, historical or otherwise, has more claim to authority over federal powers than the Constitution. Who are you to argue against Article I Section 8 and the 10th Amendment? And the 9th for that matter?

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Re:Do High Interest Rates Fix High Inflation? by HDThoreaun on Wednesday June 14, 2023 @03:29PM (#36331301)

commerce clause gives congress the power to set up a central bank. also

> To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;

regulate the value thereof literally describes a central bank.

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Re:Do High Interest Rates Fix High Inflation? by netbioserror on Wednesday June 14, 2023 @09:49PM (#36335443)

"Central banking" is an excessively broad interpretation of regulating commerce between the several states. Further, delegation of enumerated powers is not itself an enumerated power. Just these two interpretations alone are enough to give the federal government near limitless economic intervention power, which it is blindingly obvious the Constitution's authors did not favor (see their extensive writings and the Preamble to the Bill of Rights).

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Re:Do High Interest Rates Fix High Inflation? by harimau777 on Wednesday June 14, 2023 @07:20AM (#36324184)

Assuming, for sake of argument, that the system was designed to lock up in a split-Congress scenario, that still only constitutes a working legislative system if congress represents the will of the people.

However, the combination of gerrymandering, the electoral college, lobbyists, etc. mean that congress no longer reflects the will of the people in a meaningful way.

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Re:Do High Interest Rates Fix High Inflation? by netbioserror on Wednesday June 14, 2023 @10:12AM (#36326272)

I'm sure your definition of "will of the people" and mine are fundamentally incompatible, so this rings hollow to me.

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