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<blockquote data-quote="UPS Lifer" data-source="post: 964340" data-attributes="member: 9789">Wkmac, I wanted to know how the FED worked so I did research some years back to get a better understanding. It is fascinating as to how it works and very complicated. Most people don&#039;t really understand the Fed and how it works and I think that is a conversation better left to the financial and economic geniuses. On that note,&nbsp; I agree entirely with your post and you did a good job of explaining it.&nbsp; Thank You. BUT - The primary role (very simply) is the Fed is an entity used as a buffer and to keep our monetary system, economic system and employment stable to eliminate panic which could create runs on banks as well as uncontrollable inflation. Because Fed interest rates are virtually 0 (.15%) - It is my opinion the buffer has been reduced dramatically. They are weaker because they can&#039;t really adjust the interest rate much right now which reduces the Fed&#039;s ability to control the monetized debt. My opinion is that if you throw too much US money into the system it weakens the $ and creates a higher international oil price because oil is traded in US $. It is also my archaic opinion that paper money should be backed by gold and silver.&nbsp; This is pie in the sky thinking! Unfortunately, we have long past that threshold.</blockquote>

[QUOTE="UPS Lifer, post: 964340, member: 9789"] Wkmac, I wanted to know how the FED worked so I did research some years back to get a better understanding. It is fascinating as to how it works and very complicated. Most people don't really understand the Fed and how it works and I think that is a conversation better left to the financial and economic geniuses. On that note, I agree entirely with your post and you did a good job of explaining it. Thank You. BUT - The primary role (very simply) is the Fed is an entity used as a buffer and to keep our monetary system, economic system and employment stable to eliminate panic which could create runs on banks as well as uncontrollable inflation. Because Fed interest rates are virtually 0 (.15%) - It is my opinion the buffer has been reduced dramatically. They are weaker because they can't really adjust the interest rate much right now which reduces the Fed's ability to control the monetized debt. My opinion is that if you throw too much US money into the system it weakens the $ and creates a higher international oil price because oil is traded in US $. It is also my archaic opinion that paper money should be backed by gold and silver. This is pie in the sky thinking! Unfortunately, we have long past that threshold. [/QUOTE]

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