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Redrocket

Does the recent FED move mean we are leaving a capitalist and moving toward a socialist system?

The FED is printing money as fast as they can and bailing out banks with pour business practices. Since, the paper they print is not backed by anything of intrinsic value, do you feel that this will further devalue the US dollar?
Jack:

ROTFLMAO

MOVING? We already have one, if you haven't noticed.

Armyboy:

The Fed isn't exactly printing money as fast as they can. They are not
growing the money supply directly - though lowering interest rates can be viewed
as the same. It's a fine distinction. Lowering interest rates will, for sure, devalue the US dollar.

What they are doing, however, is bailing out banks to some degree. For
example, they are lending heaps of money to JP Morgan to buy out the doomed
Bearn Sterns.

This actually has nothing to do with a socialist system - China which is
"socialist" (with strong capitalist overtures these days) has a Central Bank as
well.
I think you have some different ideas mixed up in your question.

TruthJunkie:

Very good points, Dennis.

Gemz Star!:

Absolutely! If the Chinese decide to dump our currency on the market, we'll see a panic this country hasn't felt in nearly 80 years.

Gemz Star!:

PS: Right now it's in their best interest not to. But that will all change when a series of agreements end and economic incentives elapse during the first Triple Witching Hour of 2013. Buy Euros now.

Lovely:

Buy Euros and your prophecy will become truth. Support America and we will get through this downturn.

Gemz Star!:

Not with the current mindset. We need to WORK our way out of inflation and devaluation, not spend our way out of it, giving our currency to rogue nations like China and Pakistan. I'll keep my money here when American businesses return to our shores and we reject the policies of depending on an information-based economy. This country is being run by those who want to live like kings in their own third-world.

TruthJunkie:

And living like kings they are, there are too many controlling elements in this country which dictate to our society of what we should buy and how we should live and control factor is evident by what we hear and see in the media (the control factor). Information-based economy is ok if combined with American based production industry .

Lovely:

A country's financial future is only as good as the trust investors have that it will succeed.

America has been the best choice ever, and it will continue to lead the world in financial stability.

Take your money and run to a place that is better, for the brief moment, but you will be back.

TruthJunkie:

It means how can greed still flourish? How much will your dollar today buy you compared to last year, 5 years ago etc., How much has your income and net worth went up or down, we are heading for a collapse of the Banking Industry. But don't worry our government will bail them out just like the auto/airline industry, and the S and L Industry a few years back. Remember as long as there is greed , they will find a way to move the economy.

Lovely:

So your answer is to outlaw greed. That sounds like a great solution to your perceived problem. ;)

TruthJunkie:

Not outlaw have restrictions on what is considered profit. Should our tax dollars support profits exceeding 20% or 200%. Where do you draw the line? Does the american people have to support big business, yes if we are to survive with current economy system. My perceived problem is seeing everyday working class people getting taken advantage of.

Lovely:

Which banks have the feds bailed out?

TruthJunkie:

Every bank is connected to government in one way or another. The 200 million the Feds have put back into economy went to the Banks for re-purchase agreements (a loan) . Board of directors at these corporate Banks you will never find as I pay you to buy stock in your name , who owns the Banks?

Lovely:

That wasn't bailing out the banks so much as it was an attempt to bail out a lot of homeowners who invested in real estate they could not afford in the first place.

It seems as if the government is "damned if they do and damned if they don't" when trying to help the economy.

TruthJunkie:

The banks are stuck with these foreclosures , to sell them they take a loss, in return a loss to their shareholders, in return higher prices from shareholders loss passed to consumer in shareholders business, costing the american people, not the banks, yes the bailout is for the banks to keep their shareholders happy with a good return. Otherwise they will take their money elsewhere.

Lovely:

I look at it differently than you do. The banks lend the money at much lower interest rates to save the poor souls who invested in homes and real estate they could not afford.

You see the banks as winner's and I see the people who will lose their homes otherwise as being the real winners in the debate.

TruthJunkie:

Right now if you let your home go back to the bank you are the winner, with market values 20-60% below values of 2 years ago . A 200k home appraised value , you owe 160k current market value 120k who loses? The banks lose they can not sell property to erase current debt. Homeowner loses home and credit rating , who is winner in the end , no one.

Ed:

There are 2 questions here (not a good idea on Q&A). Yes, we are moving to a socialist system, but it has nothing to do with the Fed. Yes, they are devaluing the dollar, but we have been doing that for a long time.
At this point, our economy needs a devalued dollar. We need to make US goods cheaper overseas so we can sell more to stimulate the economy.

TruthJunkie:

Another great point made Ed.

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