Article1 thomas goldstein of phoenix, arizona the nature of the federal reserve

Thomas Goldstein of Phoenix, Arizona: The Nature of the Federal Reserve Thomas Goldstein of Phoenix, Arizona is an individual who prides himself on understanding the nature of the environment he is living in. By understanding his environment to the fullest extent possible, he is able to make more informed decisions that will benefit himself, his family, and his community. Due to the proliferation of the specialized, modern economy Thomas Goldstein of Phoenix, Arizona believes that the American economic framework is the most prominent structure in his environment. His exploration into the subject matter inevitably led him to the Federal Reserve Bank and its structure.

The Federal Reserve Bank of America has a government mandate to maintain high employment and a steady price level. It is in an especially powerful position because it has a monopoly on the printing of money. The Federal Reserve will occasionally print money in an attempt to lower interest rates and stimulate the economy by giving people an incentive to borrow and spend. This is good in the sense that it might induce businesses to hire more workers or individuals to spend more. However, it is crucial to identify the difference between money and wealth. Money is a social construct that facilitates the exchange of wealth; it is a representation of the labor that went into the conversion of raw materials into wealth, but it is not wealth itself. By printing more money without increasing wealth, consumers and business within the economy receive the signal that they have more wealth than they actually have, which will be like a wrench in the system once the information that the money supply is increased has been transmitted through the whole economy.

The Federal Reserve is literally banking on a bet that the illusion of wealth will induce people into creating that wealth after the fact; however, if this does not happen then the economy is in for a serious jolt of shock. Once information that the money supply is increased has been transmitted throughout the whole economy the only permanent change will be a higher price level, Thomas Goldstein of Phoenix, Arizona explains. The relative value of goods and services in comparison to each other is not affected by a change in the money supply, nor is more wealth created by printing more of the tool used to facilitate the exchange of wealth.

There are a number of prominent economists and politicians who are currently warning the public of the dangers created by the Federal Reserve, but many of their claims are being dismissed by people more powerful than them. Thomas Goldstein of Phoenix, Arizona hopes that the American people are able to sort out their economy before any serious repercussions occur, such as a devaluation of the American dollar in relation to global currencies.