Banknoise.com We're talking about your money…

[AUTOMATIC TRANSLATION - SEE NOTE]

In addressing the economic and financial crisis in the U.S. (and especially, to prevent its repetition in the future), many proposals will actually increase the power of the Federal Reserve. This perspective not everyone likes. It is worth mentioning an interesting (and long) article by William Greider, setting out very clearly why the Fed should not be granted more power. Summarize the main points in extreme brevity, the premise that these are issues that need to be studied (the summary is that we carry, in my first, an oversimplification), but it is critical that in any case can not simply be ignored.

We come then to the comments Greider, which believes that increasing the power of the Fed:

1. Press the bankruptcy: the Fed is partly responsible of the crisis that has arisen.
2. Overall, the policy implemented by the Fed has destabilized the U.S. economy.
3. The Fed can not address the problem of systemic risk in an objective, because it has contributed to the structural weaknesses that led to the crisis.
4. The Fed is not trusted to defend the public interest in establishing agreements with banks.
5. Rather than setting aside the policy of “too big to fail”, the Fed should embrace more so, in order to adjust the “systemic risk”.
6. The road leads to the state-company, a merger of public power and private, where you can create a power group that controls the entire economy

SHARE THIS POST:

Related Posts:

1. Why did the Fed increase interest rates?
2. Why consumers should benefit from weekly gas prices?
3. Health: privatize to reduce costs ?
4. (Italiano) Il business plan (perché in USA un fallimento può aumentare la possibilità di avere prestiti)
5. Need to increase supplementary pensions in Italy

Perché dovrebbe diminuire il potere della FED, e non aumentare