2daMoon
Mostly Harmless
I had to disagree n two points: first, the Federal Reserve System and Board are 100% US Federal Entities. They are NOT private. The regional Federal Reserve Banks are technically owned by the member banks in their District although they operate in policy set by the Federal Reserve Board. Here are the facts:
The next one would by hysterically funny were it not to be a totally false statement.
The 16th Amendment to the US Constitution gave the authority. Reading that might help. Just a glance of the IRSntimeline does the rest:
IRS History Timeline | Internal Revenue Service
A brief, interactive timeline depicting a few highlights on the evolution of our American tax system. As you browse through this timeline, you will see the dedication of the Internal Revenue Service’s employees and our ongoing commitment to service and to all taxpayers.www.irs.gov
To describe those false statements as concurring mine was sad. My post was a satirical comment on the evolution of papar currency. I may have actually misled you when I referred to leaving the gold and silver standards. Those events have exactly zero to do with actual tax policy. Finally the FRS and IRS were indeed legislated the same year. Checking their legislative history shows they were both intended to help prevent financial crises and provide stable funding base for thenUS Government.
All of this belongs in a graduate monetary policy course, nit a general investors forum.
However, without understanding thenUS financial system, including also the SEC and the DTC are less well equipped to understand the practical financial risks of holding TSLA.
Understanding all that allows a far less transactional view of TSLA.
Thanks for the link. I was mistaken. It was the Federal Income Tax that was created in 1913, along with the Federal Reserve. Not the IRS itself.
These both were necessary, as the continued use of Gold and Silver as a currency would slow economic growth. The Fed Res Note was created as an alternative, and it displaced gold and silver, as well as US Treasury Notes over time. Gold as money was outlawed in the 30's, then made legal again thanks to legislation by Ron Paul in the 80's. This is why US Gold (and Silver) coins are again minted by the US Treasury. But Fed Res banks will only recognize their face value if someone were to use them as money. The one ounce silver dollar can be purchased for about 28 Fed Res dollar notes, and the fifty dollar gold Eagle can be had for around 2300 Fed Res dollars.
Frankly, both sides of the gold as money arguments have their strong points and their weak points. I don't take sides, rather I just work with whatever is popular and try to understand what I can about the money.
Fiat currencies allow the money supply to be expanded at a pace that, in a perfect scenario, would pace the growth of goods and services in the marketplace. A metallic or other standard based upon a limited physical reference can not be grown as quickly, thus can slow progress and cause problems.
If the pace of money creation is matched, the inflation of the supply will not result in devaluation of the dollar. Devaluation of the dollar is the result of growing the supply at a higher rate than is required to keep pace with a growing economy. Perhaps the national debt is the tally of those overages of money creation?
Fiat currency, in and of itself isn't a bad thing in principle. Historically, it is decisions by the people managing the growth of a currency that has been the downfall of one Fiat currency after another over the past 5000 years.
The Fed Res aiming for 2% inflation annually seems a reasonable goal, (if the economy is growing at 2% as well) but there are too many variables and influences to make that an easy job to manage.
The tough bit for Fiat money is how this type of currency is entirely belief-based. The moment that the "full faith and credit" of the issuer loses its followers, the currency is replaced. Historically speaking, this often results in uncomfortable times for those caught in the middle of it.
As I mentioned before, the move toward renewables and the incredible reduction in the cost of energy will have significant effect on how the currency (or currencies, worldwide) are managed. The cost of nearly everything is mostly derived from the costs of energy used to provide the goods and services.
As long-lasting, low maintenance production of energy and storage grows to a level that serves the needs of the economy, the cost of goods and services are likely to fall so as to reflect the actual cost of producing/providing them.
The great experiment continues. To bet on this bright future TSLA would be a good place to put your money, whether it be held as specie or Fiat.
HODL
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