Yes, good description by Derek. However, just one thought: we do
trust the market for most goods and services, but the price of money
is not the only intervention-based price, if we think about the
minimum wage and other social engineering.
And of course I agree with Phil that dissing social programs (or
social engineering) is a non-starter. Maybe for general consumption
libertarians can call the practice something like "government
interference with the efforts of the hard-working middle class." And
include the Fed as such interference.
Marcy
Here's my attempt at being succinct:
-Interest rates are nothing more than the cost of money
-Without intervention, markets would assign a cost of money (the
interest rate), which would be based upon the supply of money
(savers), with respect to the demand for money (borrowers)
-It is at this market determined interest rate, where both sides, on
the margin, feel they are getting a good deal. Otherwise, there would
be no lending.
-If the government steps in and changes the cost of money by lowering
or raising the interest rate, (using new dollars to buy short term
debt instruments or vice versa), then by definition, one of the
parties (either savers or borrowers) are worse off then they had been
before this intervention. Usually it is the savers that get the short
end.
Everything else is just smoke and mirrors designed to confuse you.
Just remember this: We trust the market to set the price for countless
goods and services. Why do we not trust it to set the price of money?
-Derek
>
> I think this could be put in a more humane and populist light.
>
> the Fed systematically steals from the poor and middle cclass and
> gives to the rich, the connected and wastes resources that could be
> used for what all people need on needless wasted speculations.
these
> resources if kept in the hands of poor and middle class prudent
> savers could avert much poverty and provide much opportunity over
> time. Attacking social programs , when millions are unemployed is a
> political non starter. I have always tried to emphazsize how much
> more compassiionate voluntary social efforts originating close to
home
> are, and that taking from the people and distributing it through a
> centralized politized structure thousands of miles for ttrickle
down
> through the levels of bureaucracy is not as effective or caring as
> just letting mommy keep more money in her paycheck, or neighbors
> keeping more money and time to care themselves and those around them.
>
> When I left for Baltimore, I accidently left my cane in the rush to
> get in the cab. I had to get a good cane so i went to the national
> center for the blind at the end of Charles Street in south Baltimore
> near I 95. When we pulled up to park, I asked my friend what that
> hugh 5 storey or so brick, limestone and stainless building that
took
> the whole block up was. He said , thats is where we are going. My
jaw
> dropped. The light house for the blind is a modest two storey
> storefront on van Ness. always filled with activity, people of all
> ages and abilities, and every inch crowded with well used computer
> labs, a well stocked store, an accesible for staff, a piano , and
busy
> modest meeting rooms, and a modes kitchen.
>
> The National ccenter had a big impressive front lobby with mnumerous
> stainless steel braille oblisks protruding from the wall leading to
> aan elevator lobby. I guess signs of some kingd instructed
visitors to
> the third floor. A Hyatt like clear elevator witha harbor view
wisked
> us up to the Security semicircle., wher e we asked the guard the way
> to the store. He leaned back on his swivel chair and looking up
from a
> bank of tv security monitors, motioned us to tke a seat and wait
for
> an escort. After about five minutes a short women who amply filled
her
> tight polyeaster pants and carried a large dkey chain the size of a
> softball, came and announced that she would escort us to the store.
> She took us through a few locked doors, turning lights on and off as
> we went. We arrived into a very large room, maybe 20 000 square
feet,
> with bookshelves in a portion of one corner, and a scattering of
> tables and chairs that were revelled when she turned on the
lights. I
> was somewhat taken aback and asked her what this room was . She
> informed me that it was the national centers library.. I asked her
why
> nobody was there. She said that there was rarely anybody there. but
> that the remainder of the space was planned for the largest "nnon
> scientific" library in the nation. We arrived at the dorr for the
> store. She unlocked it and turned on thelights and we waited for the
> store clerk to arrive. A few minutes later she arrived. She showed
> me the available canes. they only had canes contracted by the
national
> center, mostly from blind industries, a quasi government operation
> emanating from the roosevelt administration. they did have my
favorite
> cane , made by a private firm. that had a higly reflective surface
> that has already saved my life at least once. The clerk informed
that
> cane I liked had elastic inside that wore out. I informed her that
> the elastic was guarateed for life and all one had to do was mail
back
> the cane with the worn elastic and one with new elastic would arrive
> back soon after ,no charge. My friend told me later that this
response
> was met by a sour face.
>
> I grudingly bought the inferior cane, and we returned through the
> empth library, the security desk, the glass elevator and the long
> elegant lobby and finally onto the street and our car, never having
> seen another person but the three staff.
>
> Out ofcourosity, we visited the converted enamel factory accross the
> street. A one bedroom with view of the parking lot and I 95 like
in a
> Jackson Browne swan song,overpass was ggoing for 1400 bucks a month.
> No takers and no window in the bedroom. The real estate agent said
> that 3 people form the national center lived in the 200 unit
complex.
> an elegaant similar sized in the best part of town goes for about
> 800. In other words, converted lofts may be another over capacity
> market in Baltimore.
>
> The National Centers board is populated by washington insider
> politico's . I would be interested how this facility was funded. I
> suspect that the funding was not privately raised. I suspect it a
> tribute to Senator barbara Mikulski's, or Paul Sarbanes's edifice
> complex.
>
> This was a great disappointment to me , as i was hoping to find a
> caring, alive,and helpful place in Baltimore similar to to that in
san
> Francisco.
>
> The experience seems to be predicted by the Libertarian point of
view
> if in fact the effort is government funded. As if I needed more
> confirmation that government is not the best steward of scarce
> resources devoted to helping visually impaired live ful, productive
> and rewarding lives.
>
> I was bumed for a few days. But decided to be thankful for the
> lighthouse instead.
>
> Phil
>
> > Dear Catherine,
> >
> > I so completely agree with you that libertarians do have a tendency
> > toward verbosity, which prevents us from getting to the point! So,
> > your question is very well taken. I am by no means the resident
> > expert on the U.S. monetary system, but if I were to go by gut
> > feeling, I would say: From a libertarian point of view, the Fed has
> > to go because it is the foundation upon which socialism rests
via the
> > Fed's ability to create "wealth" out of thin air. No Fed, no silly
> > money, no social programs.
> >
> > Hope that helps : - )
> >
> > Marcy
> > --- In lpsf-discuss@yahoogroups.com, "Catherine Tripp" <cgtripp@>
> > wrote:
> >>
> >> As a lifetime libertarian, I would certainly support eliminating as
> >> many Federal agencies as possible, but the justifications
provided in
> >> the links to videos were unconvincing. Howcome we gotta be so
> >> verbose? Can't the argument be made in a three minute video or
a two
> >> paragraph presentation? I tried to watch the videos, the first one
> >> was just this one guy in front of a bunch of different places
opining
> >> for one and half hours. The second was a couple of different
talking
> >> heads, but the maker talked over most of them for 121 minutes. Who
> >> are these guys? Anyway, best of luck to you who attend, I hope we
> >> learn the art of the sound bite.
> >>
> >> --- In lpsf-discuss@yahoogroups.com, John Perna <savefreedom2005@>
> >> wrote:
> >>>
> >>> End the Federal Reserve Bank! National Rally for Sound Money,
> >> November 22nd
> >>> If you don't know why we should END THE FED, check out these
videos: