|
| No, they control the supply of money. How they do that, however, will determine whether it is obvious (like now) or more "under the radar" where it is not obvious. I think you would be more accurate in saying that currently they are being irresponsible in how they are controlling the money supply. Doesn't money supply need to grow based on economic activity in the country? If it isn't increased, there are problems. The Central Bank controls the supply of money - it's what they do.
You said: "I believe OldMcdonald and I think some day there will be a different system implemented, or at least a reset to the current system so it can go again for a while. I gather from your posts you believe nothing will ever be different than what we currently have as far as the FED and their attempts at control of money supply. It is hard to reconcile thought processes when there are fundamental differences in beliefs of what is possible or probable."
I believe the same. It cannot go on, but it can go on for a lot longer (probably) than we think possible. We haven't even done something like France did in the early 60s yet. If you believe that I think this system can go on forever, I've been doing a very bad job of writing my posts. I just do not think the outcome is as predictable as you and Old Mcdonald make it appear to be. From what I've seen, you take a pretty much linear trend and project it out, and I don't think things behave like that. At some point, the cycle exhausts the current move, and the pendulum swings back. But I'm sure about one thing - it will not be all that predictable. | |
|
The 4.5 trillion dollar balance sheet. Continued QE
