McCain's platform for his administration

[Mr. Big Dog 10,747]

As I said earlier, meet John McSame.

Gas tax holiday? $35.00 worth a benefit? Better come up with a good plan on spending that windfall.

Ok, you don't like the idea of a gas tax holiday. What about the rest of it?

I don't like the idea of extending Bush's failed policies. We cannot afford it. Average Americans need to be part of the economic upswings again. We need to understand that borrowed wealth isn't real and will eventually collapse. Neither Bush nor McCain seem to grasp this very simple fact. That's why I shall call him John McSame going forward. It would be like handing Bush a third term. Can't do that in good conscience.

The Madness of Ben Bernanke

What specifically in his platform don't you like? Your speaking in generalizations.

So is the platform. When he puts numbers to his proposals, then we can talk specifics. From what I read, his tax cuts are bound to cost 6-7 trillion over the next decade. No word on how to pay for that seeing the big pile of debt we're already in. So, as he provides specifics, we can debate them. Until then, I suppose you need to afford me the courtesy of accepting general statements in response to, well, general statements.

But do read that article I added to my earlier post and share your thoughts on how McCain's plan addresses this issue.

[GaryC 7]

As I said earlier, meet John McSame.

Gas tax holiday? $35.00 worth a benefit? Better come up with a good plan on spending that windfall.

Ok, you don't like the idea of a gas tax holiday. What about the rest of it?

I don't like the idea of extending Bush's failed policies. We cannot afford it. Average Americans need to be part of the economic upswings again. We need to understand that borrowed wealth isn't real and will eventually collapse. Neither Bush nor McCain seem to grasp this very simple fact. That's why I shall call him John McSame going forward. It would be like handing Bush a third term. Can't do that in good conscience.

The Madness of Ben Bernanke

By Gabor Steingart in Washington

The dollar is in a tailspin, the trade deficit is growing and a recession is on the horizon. The American way of life is in serious danger. But the head of the Federal Reserve keeps on pumping easy credit into the system -- a crazy policy that will worsen the crisis.

Alan Greenspan and Ben Bernanke have more in common with the big cat entertainers Siegfried & Roy than any of us can be comfortable with.

The Las Vegas magicians call themselves "Masters of the Impossible" and have been fascinating audiences for decades by getting snow-white tigers to leap through burning rings.

The legendary Federal Reserve Chairman and his successor were equally adept at fascinating their audiences -- with a policy of miraculous monetary growth that gave America one of the longest periods of economic expansion in modern times. Many saw them as "Masters of the Universe." It seemed as if the central bankers had tamed predatory capitalism with their constant interest rate cuts.

Siegfried & Roy at times seemed at one with their cats, until the day everything went out of control. A tiger bit Roy in the neck during a show and looked as though it were about to devour him alive.

Greenspan and Bernanke too have lost their magic touch, and their image has been shredded by the real estate crisis and the dollar slide. The ravages of the financial markets aren't doing them any personal harm. But devalued stocks, bad mortgage loans and the diving dollar are damaging millions of small investors and savers.

It's as if the tiger has leapt of the stage and is mauling the audience. We can't blame wild cats or financial markets for being ruthless. It's in their nature to be brutal. Their unmistakeable message is: you can take things this far and no further.

In the case of the real estate crisis which reached the banks and is now unsettling the stock markets, the markets are now showing what G7 finance ministers and central bank governors meeting last weekend in Washington for their annual spring get-together declined yet again to admit publicly: Americans must change their lives -- or it will be changed for them by force.

American Way of Life Under Threat

The credit-financed consumer boom of recent years is coming to a painful end. Today's American Way of Life has no chance of surviving the coming years undamaged. The virus will continue to ravage its way through the financial system.

The property crisis is likely to spread to credit card providers soon and will then probably infect car manufacturers, furniture makers and all the other firms that owe their sales increases to the growth in credit finance. "The virus will keep on infecting the system," one management board member from a large bank said, requesting anonymity in return for the candour of his analysis.

His argument is that banks that grant mortgages to home buyers virtually unable to pay their bills are unlikely to be especially scrutinizing when it comes to lending cash to the buyers of fridges, cars and furniture. Indeed, a furniture store in Miami recently tried to lure consumers with the following offer: buy now, pay your first credit installment in three years, and no need for a down-payment.

The credit-financed way of life is typical of the US these days. Many people resort to credit to plug the gap between the lifestyle they have become accustomed to and their declining wages.

Dulling the Pain With Credit

The borrowed cash is like an anaesthetic against the painful impact of globalisation. Private household debt has been growing by $4 billion each business day for years.

All this wouldn't be so bad if the US economy were at least doing well in foreign markets. But it isn't, and hasn't been for a long time. Despite the depreciation of the dollar, which makes imports into the US far more expensive while making US exports cheaper in foreign markets, US manufacturers are finding it hard to sell their products.

Contrary to forecasts by both the Federal Reserve and the Treasury, the trade deficit has continued to grow, by 6 percent in February alone. America imported $62 billion worth of goods more than they exported in February, including a disturbingly large number of cars, computers and pharmaceutical products. Try as they might, most private households in America can't keep up this consumer miracle. The savings behavior of many Americans means that many of them now live from hand to mouth.

But Bernanke is doing nothing to dampen this hunger for credit. The former advisor to President George W. Bush is even trying to whip up credit-financed consumption by lowering interest rates. This is helping to fuel inflation because the monetary growth isn't being matched by growth in real economic output. Inflation in the US currently stands at 4 percent.

It's a paradox. The private commercial banks which have just had to make billions of dollars in write downs have become more cautious. They're scared of further risks. The management resignations at Citigroup and Bear Stearns have had a sobering impact.

Patriotic Madness

Meanwhile the Federal Reserve is urging the banks to go on taking risks. It has been injecting cash into the banking system for the past half-year while urging bank CEOs in confidential chats to offer more credit. The aim is to keep on financing consumer spending and even to stimulate it further -- for reasons of patriotism.

There's a word for this policy -- madness.

But because there is method in this madness, the meeting of mighty central bank governors and finance ministers in Washington over the weekend remained silent about it, at least officially. Outside the meeting rooms, though, there were murmurings about the poisoned legacy of Alan Greenspan and Bernanke's irresponsible behavior.

One participant told me: "There's an unwritten code of honor that says central bank governors should refrain from criticizing each other." Not least out of respect for the independence of central banks.

But the US is unlikely to realize the error of its ways on its own. "The Americans will always do the right thing," British Prime Minister Winston Churchill once said, "after they've exhausted all the alternatives."

Central bankers and tiger tamers have something else in common -- obstinacy. Roy has recovered from his wounds and wants to return to the stage in Las Vegas. "The magic is back," came the defiant announcement.

Alan Greenspan cut a similarly indestructible figure at the weekend. Even though criticism of his cheap money policy was only murmured privately, the 82-year-old legend of central banking said: "I was praised for things I didn't do. I am now being blamed for things I didn't do."

Not that he ever complained about getting false praise.

None of this is Bush's doing. It talks about they way our society runs on credit. Thats the Feds arena. They are two seperate things. Your blaming the wrong part of government.

[Ban Hammer 12,835]

was never indexed for inflation, so every year it gets moer and more people. originally designed to nail the rich with a minimum tax, it's been snaring middle class.

Yeah, but it's not quite as simple - it's not just a function of income.

Some people who make $75,000-100,000 get hit with the AMT, others who make $300,000-450,000 don't.

exactly. i've often worried about being nailed with it. usually if one is in a state with high income tax, i believe has children, and a bunch of deductions like mortgage interest and so on, they are prime targets for it.

and if amt tax is higher, that's the one they get to pay.

[GaryC 7]

As I said earlier, meet John McSame.

Gas tax holiday? $35.00 worth a benefit? Better come up with a good plan on spending that windfall.

Ok, you don't like the idea of a gas tax holiday. What about the rest of it?

I don't like the idea of extending Bush's failed policies. We cannot afford it. Average Americans need to be part of the economic upswings again. We need to understand that borrowed wealth isn't real and will eventually collapse. Neither Bush nor McCain seem to grasp this very simple fact. That's why I shall call him John McSame going forward. It would be like handing Bush a third term. Can't do that in good conscience.

The Madness of Ben Bernanke

What specifically in his platform don't you like? Your speaking in generalizations.

So is the platform. When he puts numbers to his proposals, then we can talk specifics. From what I read, his tax cuts are bound to cost 6-7 trillion over the next decade. No word on how to pay for that seeing the big pile of debt we're already in. So, as he provides specifics, we can debate them. Until then, I suppose you need to afford me the courtesy of accepting general statements in response to, well, general statements.

But do read that article I added to my earlier post and share your thoughts on how McCain's plan addresses this issue.

McCain has very specific numbers in there. Your working under the assumption that tax cuts must be "paid for" somewhere else. The economy isn't a zero sum gain. When you cut taxes the economy grows. When it grows the government gets more tax revenue. The tax cuts pay for themselves and the people win.

[Mr. Big Dog 10,747]

As I said earlier, meet John McSame.

Gas tax holiday? $35.00 worth a benefit? Better come up with a good plan on spending that windfall.

Ok, you don't like the idea of a gas tax holiday. What about the rest of it?

I don't like the idea of extending Bush's failed policies. We cannot afford it. Average Americans need to be part of the economic upswings again. We need to understand that borrowed wealth isn't real and will eventually collapse. Neither Bush nor McCain seem to grasp this very simple fact. That's why I shall call him John McSame going forward. It would be like handing Bush a third term. Can't do that in good conscience.

The Madness of Ben Bernanke

By Gabor Steingart in Washington

The dollar is in a tailspin, the trade deficit is growing and a recession is on the horizon. The American way of life is in serious danger. But the head of the Federal Reserve keeps on pumping easy credit into the system -- a crazy policy that will worsen the crisis.

Alan Greenspan and Ben Bernanke have more in common with the big cat entertainers Siegfried & Roy than any of us can be comfortable with.

The Las Vegas magicians call themselves "Masters of the Impossible" and have been fascinating audiences for decades by getting snow-white tigers to leap through burning rings.

The legendary Federal Reserve Chairman and his successor were equally adept at fascinating their audiences -- with a policy of miraculous monetary growth that gave America one of the longest periods of economic expansion in modern times. Many saw them as "Masters of the Universe." It seemed as if the central bankers had tamed predatory capitalism with their constant interest rate cuts.

Siegfried & Roy at times seemed at one with their cats, until the day everything went out of control. A tiger bit Roy in the neck during a show and looked as though it were about to devour him alive.

Greenspan and Bernanke too have lost their magic touch, and their image has been shredded by the real estate crisis and the dollar slide. The ravages of the financial markets aren't doing them any personal harm. But devalued stocks, bad mortgage loans and the diving dollar are damaging millions of small investors and savers.

It's as if the tiger has leapt of the stage and is mauling the audience. We can't blame wild cats or financial markets for being ruthless. It's in their nature to be brutal. Their unmistakeable message is: you can take things this far and no further.

In the case of the real estate crisis which reached the banks and is now unsettling the stock markets, the markets are now showing what G7 finance ministers and central bank governors meeting last weekend in Washington for their annual spring get-together declined yet again to admit publicly: Americans must change their lives -- or it will be changed for them by force.

American Way of Life Under Threat

The credit-financed consumer boom of recent years is coming to a painful end. Today's American Way of Life has no chance of surviving the coming years undamaged. The virus will continue to ravage its way through the financial system.

The property crisis is likely to spread to credit card providers soon and will then probably infect car manufacturers, furniture makers and all the other firms that owe their sales increases to the growth in credit finance. "The virus will keep on infecting the system," one management board member from a large bank said, requesting anonymity in return for the candour of his analysis.

His argument is that banks that grant mortgages to home buyers virtually unable to pay their bills are unlikely to be especially scrutinizing when it comes to lending cash to the buyers of fridges, cars and furniture. Indeed, a furniture store in Miami recently tried to lure consumers with the following offer: buy now, pay your first credit installment in three years, and no need for a down-payment.

The credit-financed way of life is typical of the US these days. Many people resort to credit to plug the gap between the lifestyle they have become accustomed to and their declining wages.

Dulling the Pain With Credit

The borrowed cash is like an anaesthetic against the painful impact of globalisation. Private household debt has been growing by $4 billion each business day for years.

All this wouldn't be so bad if the US economy were at least doing well in foreign markets. But it isn't, and hasn't been for a long time. Despite the depreciation of the dollar, which makes imports into the US far more expensive while making US exports cheaper in foreign markets, US manufacturers are finding it hard to sell their products.

Contrary to forecasts by both the Federal Reserve and the Treasury, the trade deficit has continued to grow, by 6 percent in February alone. America imported $62 billion worth of goods more than they exported in February, including a disturbingly large number of cars, computers and pharmaceutical products. Try as they might, most private households in America can't keep up this consumer miracle. The savings behavior of many Americans means that many of them now live from hand to mouth.

But Bernanke is doing nothing to dampen this hunger for credit. The former advisor to President George W. Bush is even trying to whip up credit-financed consumption by lowering interest rates. This is helping to fuel inflation because the monetary growth isn't being matched by growth in real economic output. Inflation in the US currently stands at 4 percent.

It's a paradox. The private commercial banks which have just had to make billions of dollars in write downs have become more cautious. They're scared of further risks. The management resignations at Citigroup and Bear Stearns have had a sobering impact.

Patriotic Madness

Meanwhile the Federal Reserve is urging the banks to go on taking risks. It has been injecting cash into the banking system for the past half-year while urging bank CEOs in confidential chats to offer more credit. The aim is to keep on financing consumer spending and even to stimulate it further -- for reasons of patriotism.

There's a word for this policy -- madness.

But because there is method in this madness, the meeting of mighty central bank governors and finance ministers in Washington over the weekend remained silent about it, at least officially. Outside the meeting rooms, though, there were murmurings about the poisoned legacy of Alan Greenspan and Bernanke's irresponsible behavior.

One participant told me: "There's an unwritten code of honor that says central bank governors should refrain from criticizing each other." Not least out of respect for the independence of central banks.

But the US is unlikely to realize the error of its ways on its own. "The Americans will always do the right thing," British Prime Minister Winston Churchill once said, "after they've exhausted all the alternatives."

Central bankers and tiger tamers have something else in common -- obstinacy. Roy has recovered from his wounds and wants to return to the stage in Las Vegas. "The magic is back," came the defiant announcement.

Alan Greenspan cut a similarly indestructible figure at the weekend. Even though criticism of his cheap money policy was only murmured privately, the 82-year-old legend of central banking said: "I was praised for things I didn't do. I am now being blamed for things I didn't do."

Not that he ever complained about getting false praise.

None of this is Bush's doing. It talks about they way our society runs on credit. Thats the Feds arena. They are two seperate things. Your blaming the wrong part of government.

I wasn't aware that there's a forth branch of government all of a sudden. But do point out where the Constitution has provided for four branches in the federal government. I am aware of the legislative, judicial and executive branch only.

ETA: Sorry, I am aware of four branches ever since Cheney claimed not to be part of any of the three I quoted above. So, there's the legislative, judicial and executive branch and then there's Cheney. The fed belongs to him perhaps?

Edited April 16, 2008 by Mr. Big Dog

[mawilson 2,133]

was never indexed for inflation, so every year it gets moer and more people. originally designed to nail the rich with a minimum tax, it's been snaring middle class.

Yeah, but it's not quite as simple - it's not just a function of income.

Some people who make $75,000-100,000 get hit with the AMT, others who make $300,000-450,000 don't.

exactly. i've often worried about being nailed with it. usually if one is in a state with high income tax, i believe has children, and a bunch of deductions like mortgage interest and so on, they are prime targets for it.

and if amt tax is higher, that's the one they get to pay.

I was a bit worried about it myself this year, but thankfully didn't have to pay it.

[Mr. Big Dog 10,747]

As I said earlier, meet John McSame.

Gas tax holiday? $35.00 worth a benefit? Better come up with a good plan on spending that windfall.

Ok, you don't like the idea of a gas tax holiday. What about the rest of it?

I don't like the idea of extending Bush's failed policies. We cannot afford it. Average Americans need to be part of the economic upswings again. We need to understand that borrowed wealth isn't real and will eventually collapse. Neither Bush nor McCain seem to grasp this very simple fact. That's why I shall call him John McSame going forward. It would be like handing Bush a third term. Can't do that in good conscience.

The Madness of Ben Bernanke

What specifically in his platform don't you like? Your speaking in generalizations.

So is the platform. When he puts numbers to his proposals, then we can talk specifics. From what I read, his tax cuts are bound to cost 6-7 trillion over the next decade. No word on how to pay for that seeing the big pile of debt we're already in. So, as he provides specifics, we can debate them. Until then, I suppose you need to afford me the courtesy of accepting general statements in response to, well, general statements.

But do read that article I added to my earlier post and share your thoughts on how McCain's plan addresses this issue.

McCain has very specific numbers in there. Your working under the assumption that tax cuts must be "paid for" somewhere else. The economy isn't a zero sum gain. When you cut taxes the economy grows. When it grows the government gets more tax revenue. The tax cuts pay for themselves and the people win.

Yeah, that fuzzy math deployed by Bush has gotten the federal budget and debt where it is today.

[Ban Hammer 12,835]

was never indexed for inflation, so every year it gets moer and more people. originally designed to nail the rich with a minimum tax, it's been snaring middle class.

Yeah, but it's not quite as simple - it's not just a function of income.

Some people who make $75,000-100,000 get hit with the AMT, others who make $300,000-450,000 don't.

exactly. i've often worried about being nailed with it. usually if one is in a state with high income tax, i believe has children, and a bunch of deductions like mortgage interest and so on, they are prime targets for it.

and if amt tax is higher, that's the one they get to pay.

I was a bit worried about it myself this year, but thankfully didn't have to pay it.

here's a bit more on it:

The Alternative Minimum Tax (AMT) adjusts your tax liability to recapture some tax benefits. AMT is an alternative method for calculating your taxes. The regular income tax uses your adjusted gross income (AGI), then subtracts your standard deduction or itemized deductions, and then subtracts your personal exemptions, to arrive at taxable income. To calculate AMT, you start with your AGI, and then add or subtract any adjustments allowed under AMT rules, to arrive at taxable income for AMT purposes. You then calculate your AMT tax at a 26% or 28% tax rate.

Because AMT does not allow the standard deduction, personal exemptions, or certain itemized deductions, your tax under AMT rules may be higher than your tax under regular tax rules.

Generally, AMT may apply to individuals earning more than $40,250. AMT also applies to people who have a large amount of standard or personal exemptions, exercised incentive stock options, who take a net operating loss deduction, who have certain other types of income, or claimed certain business-related tax credits. AMT is calculated using Form 6251 (PDF) and the Instructions for Form 6251 (Website).

link

[William33 110]

was never indexed for inflation, so every year it gets moer and more people. originally designed to nail the rich with a minimum tax, it's been snaring middle class.

Yeah, but it's not quite as simple - it's not just a function of income.

Some people who make $75,000-100,000 get hit with the AMT, others who make $300,000-450,000 don't.

How so? I am in the first bracket, yet not subjected to the AMT either. Please explain...

[mawilson 2,133]

was never indexed for inflation, so every year it gets moer and more people. originally designed to nail the rich with a minimum tax, it's been snaring middle class.

Yeah, but it's not quite as simple - it's not just a function of income.

Some people who make $75,000-100,000 get hit with the AMT, others who make $300,000-450,000 don't.

exactly. i've often worried about being nailed with it. usually if one is in a state with high income tax, i believe has children, and a bunch of deductions like mortgage interest and so on, they are prime targets for it.

and if amt tax is higher, that's the one they get to pay.

I was a bit worried about it myself this year, but thankfully didn't have to pay it.

here's a bit more on it:

The Alternative Minimum Tax (AMT) adjusts your tax liability to recapture some tax benefits. AMT is an alternative method for calculating your taxes. The regular income tax uses your adjusted gross income (AGI), then subtracts your standard deduction or itemized deductions, and then subtracts your personal exemptions, to arrive at taxable income. To calculate AMT, you start with your AGI, and then add or subtract any adjustments allowed under AMT rules, to arrive at taxable income for AMT purposes. You then calculate your AMT tax at a 26% or 28% tax rate.

Because AMT does not allow the standard deduction, personal exemptions, or certain itemized deductions, your tax under AMT rules may be higher than your tax under regular tax rules.

Generally, AMT may apply to individuals earning more than $40,250. AMT also applies to people who have a large amount of standard or personal exemptions, exercised incentive stock options, who take a net operating loss deduction, who have certain other types of income, or claimed certain business-related tax credits. AMT is calculated using Form 6251 (PDF) and the Instructions for Form 6251 (Website).

link

I think you highlighted the wrong part - see above.

[mawilson 2,133]

was never indexed for inflation, so every year it gets moer and more people. originally designed to nail the rich with a minimum tax, it's been snaring middle class.

Yeah, but it's not quite as simple - it's not just a function of income.

Some people who make $75,000-100,000 get hit with the AMT, others who make $300,000-450,000 don't.

How so? I am in the first bracket, yet not subjected to the AMT either. Please explain...

I'm not sure, William. I don't want to say how much money I made last year, but let's just say I was

very surprised that I didn't have to pay the AMT.

According to the Urban-Brookings Tax Policy Center and the Treasury Department, "around 15% of

households with incomes between $75,000 and $100,000 must pay the AMT, up from only 2-3%

in 2000, with the percentage increasing at high incomes."

[GaryC 7]

As I said earlier, meet John McSame.

Gas tax holiday? $35.00 worth a benefit? Better come up with a good plan on spending that windfall.

Ok, you don't like the idea of a gas tax holiday. What about the rest of it?

I don't like the idea of extending Bush's failed policies. We cannot afford it. Average Americans need to be part of the economic upswings again. We need to understand that borrowed wealth isn't real and will eventually collapse. Neither Bush nor McCain seem to grasp this very simple fact. That's why I shall call him John McSame going forward. It would be like handing Bush a third term. Can't do that in good conscience.

The Madness of Ben Bernanke

What specifically in his platform don't you like? Your speaking in generalizations.

So is the platform. When he puts numbers to his proposals, then we can talk specifics. From what I read, his tax cuts are bound to cost 6-7 trillion over the next decade. No word on how to pay for that seeing the big pile of debt we're already in. So, as he provides specifics, we can debate them. Until then, I suppose you need to afford me the courtesy of accepting general statements in response to, well, general statements.

But do read that article I added to my earlier post and share your thoughts on how McCain's plan addresses this issue.

McCain has very specific numbers in there. Your working under the assumption that tax cuts must be "paid for" somewhere else. The economy isn't a zero sum gain. When you cut taxes the economy grows. When it grows the government gets more tax revenue. The tax cuts pay for themselves and the people win.

Yeah, that fuzzy math deployed by Bush has gotten the federal budget and debt where it is today.

It's not fuzzy math, it's hard facts. The Bush tax cuts has done more to help the economy than any tax hike ever has. It's the one thing that everyone should thank Bush for.

I wasn't aware that there's a forth branch of government all of a sudden. But do point out where the Constitution has provided for four branches in the federal government. I am aware of the legislative, judicial and executive branch only.

ETA: Sorry, I am aware of four branches ever since Cheney claimed not to be part of any of the three I quoted above. So, there's the legislative, judicial and executive branch and then there's Cheney. The fed belongs to him perhaps?

Balance between private banks and responsibility of government

The system was designed out of a compromise between the competing philosophies of privatization and government regulation.[17] While planning the design of the system, some people wanted the system to have generally private aspects whereas others wanted more government involvement. The system that resulted ended up being a compromise between these two philosophies. Donald L. Kohn, vice chairman of the Board of Governors, gave a summary of this compromise:[20]

Agrarian and progressive interests, led by William Jennings Bryan, favored a central bank under public, rather than banker, control. But the vast majority of the nation's bankers, concerned about government intervention in the banking business, opposed a central bank structure directed by political appointees. The legislation that Congress ultimately adopted in 1913 reflected a hard-fought battle to balance these two competing views and created the hybrid public-private, centralized-decentralized structure that we have today.

In the current system, private banks are for-profit businesses but there are restrictions on what they can do. These restrictions placed on private banks are government regulations. The Federal Reserve System is the part of government that regulates the private banks. The balance between privatization and government involvement is also seen in the structure of the system. Private banks elect members of the board of directors at their regional Federal Reserve Bank while the members of the Board of Governors are selected by the President of the United States and confirmed by the Senate. The private banks give input to the government officials about their economic situation and these government officials use this input in Federal Reserve policy decisions. In the end, private banking businesses are able to freely run a profitable business while the U.S. government, through the Federal Reserve System, oversees and regulates the activities of the private banks.

[edit] Government regulation and supervision

The Board of Governors is the part of the Federal Reserve System that is responsible for supervising the private banks. A general description of the types of regulation and supervision involved is given by the Federal Reserve:[14]

The Board also plays a major role in the supervision and regulation of the U.S. banking system. It has supervisory responsibilities for state-chartered banks that are members of the Federal Reserve System, bank holding companies (companies that control banks), the foreign activities of member banks, the U.S. activities of foreign banks, and Edge Act and agreement corporations (limited-purpose institutions that engage in a foreign banking business). The Board and, under delegated authority, the Federal Reserve Banks, supervise approximately 900 state member banks and 5,000 bank holding companies. Other federal agencies also serve as the primary federal supervisors of commercial banks; the Office of the Comptroller of the Currency supervises national banks, and the Federal Deposit Insurance Corporation supervises state banks that are not members of the Federal Reserve System.

Some regulations issued by the Board apply to the entire banking industry, whereas others apply only to member banks, that is, state banks that have chosen to join the Federal Reserve System and national banks, which by law must be members of the System. The Board also issues regulations to carry out major federal laws governing consumer credit protection, such as the Truth in Lending, Equal Credit Opportunity, and Home Mortgage Disclosure Acts. Many of these consumer protection regulations apply to various lenders outside the banking industry as well as to banks.

Members of the Board of Governors are in continual contact with other policy makers in government. They frequently testify before congressional committees on the economy, monetary policy, banking supervision and regulation, consumer credit protection, financial markets, and other matters.

The Board has regular contact with members of the President’s Council of Economic Advisers and other key economic officials. The Chairman also meets from time to time with the President of the United States and has regular meetings with the Secretary of the Treasury. The Chairman has formal responsibilities in the international arena as well.

http://en.wikipedia.org/wiki/Federal_Reserve_System

[Ban Hammer 12,835]

I think you highlighted the wrong part - see above.

nah, that was the part i felt was important at the time. in answering william, yes the part you highlighted was quite pertinent.

[Mr. Big Dog 10,747]

As I said earlier, meet John McSame.

Gas tax holiday? $35.00 worth a benefit? Better come up with a good plan on spending that windfall.

Ok, you don't like the idea of a gas tax holiday. What about the rest of it?

I don't like the idea of extending Bush's failed policies. We cannot afford it. Average Americans need to be part of the economic upswings again. We need to understand that borrowed wealth isn't real and will eventually collapse. Neither Bush nor McCain seem to grasp this very simple fact. That's why I shall call him John McSame going forward. It would be like handing Bush a third term. Can't do that in good conscience.

The Madness of Ben Bernanke

What specifically in his platform don't you like? Your speaking in generalizations.

So is the platform. When he puts numbers to his proposals, then we can talk specifics. From what I read, his tax cuts are bound to cost 6-7 trillion over the next decade. No word on how to pay for that seeing the big pile of debt we're already in. So, as he provides specifics, we can debate them. Until then, I suppose you need to afford me the courtesy of accepting general statements in response to, well, general statements.

But do read that article I added to my earlier post and share your thoughts on how McCain's plan addresses this issue.

McCain has very specific numbers in there. Your working under the assumption that tax cuts must be "paid for" somewhere else. The economy isn't a zero sum gain. When you cut taxes the economy grows. When it grows the government gets more tax revenue. The tax cuts pay for themselves and the people win.

Yeah, that fuzzy math deployed by Bush has gotten the federal budget and debt where it is today.

It's not fuzzy math, it's hard facts. The Bush tax cuts has done more to help the economy than any tax hike ever has. It's the one thing that everyone should thank Bush for.

Last I checked, the economy was tanking. The now ending growth period (entirely based on borrowed wealth) has left most Americans in the dust as they did not get to participate in the upswing - a first in US history. Don't expect those people to be thankful to Bush. They have no reason to be thankful. And a hard fact are the outrageously huge deficits and federal debt that Bush has run and accumulated.

As for the Fed, to pretend that it is all that independent from the Executive, in practical terms, it isn't. There's always close coordination between the Fed and the President. Just as you quoted:

The Board has regular contact with members of the President’s Council of Economic Advisers and other key economic officials. The Chairman also meets from time to time with the President of the United States and has regular meetings with the Secretary of the Treasury.

[GaryC 7]

As I said earlier, meet John McSame.

Gas tax holiday? $35.00 worth a benefit? Better come up with a good plan on spending that windfall.

Ok, you don't like the idea of a gas tax holiday. What about the rest of it?

I don't like the idea of extending Bush's failed policies. We cannot afford it. Average Americans need to be part of the economic upswings again. We need to understand that borrowed wealth isn't real and will eventually collapse. Neither Bush nor McCain seem to grasp this very simple fact. That's why I shall call him John McSame going forward. It would be like handing Bush a third term. Can't do that in good conscience.

The Madness of Ben Bernanke

What specifically in his platform don't you like? Your speaking in generalizations.

So is the platform. When he puts numbers to his proposals, then we can talk specifics. From what I read, his tax cuts are bound to cost 6-7 trillion over the next decade. No word on how to pay for that seeing the big pile of debt we're already in. So, as he provides specifics, we can debate them. Until then, I suppose you need to afford me the courtesy of accepting general statements in response to, well, general statements.

But do read that article I added to my earlier post and share your thoughts on how McCain's plan addresses this issue.

McCain has very specific numbers in there. Your working under the assumption that tax cuts must be "paid for" somewhere else. The economy isn't a zero sum gain. When you cut taxes the economy grows. When it grows the government gets more tax revenue. The tax cuts pay for themselves and the people win.

Yeah, that fuzzy math deployed by Bush has gotten the federal budget and debt where it is today.

It's not fuzzy math, it's hard facts. The Bush tax cuts has done more to help the economy than any tax hike ever has. It's the one thing that everyone should thank Bush for.

Last I checked, the economy was tanking. The now ending growth period (entirely based on borrowed wealth) has left most Americans in the dust as they did not get to participate in the upswing - a first in US history. Don't expect those people to be thankful to Bush. They have no reason to be thankful. And a hard fact are the outrageously huge deficits and federal debt that Bush has run and accumulated.

As for the Fed, to pretend that it is all that independent from the Executive, in practical terms, it isn't. There's always close coordination between the Fed and the President. Just as you quoted:

The Board has regular contact with members of the President’s Council of Economic Advisers and other key economic officials. The Chairman also meets from time to time with the President of the United States and has regular meetings with the Secretary of the Treasury.

I don't know where you get these ideas Dog. Most Americans are doing very well. Very few have been "left in the dust". You taking a small segment of our population and amplifying it over the entire country. I feel better about my situation now than I ever did under Clinton. Most people I know feel the same way. Don't drink the liberal koolaid. They are trying to convince you that all is lost so they can offer you "change". It's a lie.