The Federal Reserve (THE FED), a benefit to the U.S. economy? Or scrap it, and get something else. EXPLAIN
I agree that the Federal Reserve of the United States is very essential to the economy. Scraping the Federal Reserve would be one of the greatest mistakes the country ever propagated. Mainly, the Federal Reserve has benefited America in several ways. First, it has assisted the country to offer and maintain effective systems of payment. America has also benefited from THE FED through its ability to supervise and regulate operations involving financial institutions such as banks along with the establishment of other monetary policies. Thus, scraping THE FEB would not make a significant difference in the economy. Although THE FED failed to prevent the American Economic Depression, it was essential in stabilizing the financial systems of the United States in the aftermath of economic depression. Moreover, THE FED should continue operating in America because it has integrated with the Federal Reserve Banks, Board of Governors, and the Federal Open Market Committee to promote and stabilize the American economy. Besides, it has assisted Americans in managing and controlling inflationary and deflationary gaps through the management of credit in the supply of money. THE FED has also strengthened the U.S. Dollar which is used in fostering payments in international business transactions due to safety and efficiency in the settlement system.
Discussion Post 2
Could the Versailles Peace Conference have been conducted differently to produce an agreement more acceptable to both Germany and the United States? EXPLAIN
I believe that the Versailles Peace Conference failed to address the interests of the members equally. In that regard, my view is that it could have been conducted differently to achieve the overall agenda of promoting peace. The Versailles Peace Conference would have achieved more than what it managed to address if only the treaty incorporated ideas from both Germany and American without dictating the terms of the treaty to either party. The Versailles Peace Conference failed because it set an extremely huge amount of money for Germany. Germany was required to pay the allies over $33 billion. In my view, the amount of money left Germany in a financial crisis that later cause the Great Depression in Europe. In that regard, the U.S. should have considered the terms of settlements that Germany could easily settle without overburdening its economic structures. Moreover, the terms in the Versailles Peace Conference created a political loophole in Germany where Germans believed that Hitler would liberate them. Instead, Hitler and his NAZI Party took advantage to revenge their loss, thereby causing the Second World War. In that regard, the Versailles Peace Conference should have given Germany an equal chance to that granted to America. Possibly, the U.S. could have joined the League of Nation and the Second World War could have never happened.