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The solution to the problems fractional reserve banking causes is simple. Save your money in stocks instead of bank accounts. If you own a stock, the money you paid for it cannot be loaned out again. It stays put.
Ron Paul believes in removing the FED, he does not say that doing so would abolish deficits..
And withou the fed private bankers, the Treasury would STILL borrow by selling off US Treasuries to China.. Again, how do you magically erase deficits and the national debt simply by changing who you borrow from?
8% of our budget goes to pay interest to the Fed private bankers. If we eliminated the interest we pay on our debt, the debt would be paid down a lot quicker. Trade and national deficits are trimmed by cutting spending and increasing revenue culled from the taxpayer - no magic there.
The only way money comes in to creation now is if we issue debt. Under a debt free system money would be issued directly from the treasury without debt.
We could still run an annual deficit but there would be no debt, the deficit would just add more money into circulation potentially causing inflation.
As it is now we are adding new debt and money into circulation.
Watch the Vids I posted above, amazing stuff.
But simply abolishing the FED wouldnt create a debt free system.. The US Treasury office creates debt daily, which would CONTINUE to take place..
Quote:
Originally Posted by freefall
8% of our budget goes to pay interest to the Fed private bankers. If we eliminated the interest we pay on our debt, the debt would be paid down a lot quicker. Trade and national deficits are trimmed by cutting spending and increasing revenue culled from the taxpayer - no magic there.
This is getting beyond stupidity that you guys dont comprehend that simply abolishing the FED does NOT mean we have no debt. Again, the US Government creates debt DAILY, and a lot of it outside of the FED.. They sell bonds for example to the Chinese, and this is done without the FED's input..
You cant just magically erase interest.. My god, do you guys live in fantasy land...
Quote:
Originally Posted by Smedskjaer
How will this eliminate our debt to other countries?
It doesnt, nor does it eliminate the debt to our own because its private investors buying the US Treasury bonds.. These people somehow magically think that this would wipout any debt but they havent yet explained how bonds an individual like myself is holding, would be paid for..
But simply abolishing the FED wouldnt create a debt free system.. The US Treasury office creates debt daily, which would CONTINUE to take place..
This is getting beyond stupidity that you guys dont comprehend that simply abolishing the FED does NOT mean we have no debt. Again, the US Government creates debt DAILY, and a lot of it outside of the FED.. They sell bonds for example to the Chinese, and this is done without the FED's input..
You cant just magically erase interest.. My god, do you guys live in fantasy land...
It doesnt, nor does it eliminate the debt to our own because its private investors buying the US Treasury bonds.. These people somehow magically think that this would wipout any debt but they havent yet explained how bonds an individual like myself is holding, would be paid for..
The 'stupidity' you refer to is your own. Of course abolishing the Fed would not immediately erase all deficits in place, but it would erase owed interest, and over time stopping the interest would give us at least the chance to erase the debt, or at least put a dent in it. Why can't you comprehend that? With the Fed in place, that would never happen.
But simply abolishing the FED wouldnt create a debt free system.. The US Treasury office creates debt daily, which would CONTINUE to take place..
Exactly, abolishing the Fed is only half of the equation. The Treasury issues debt in order to raise funds to purchases Federal Reserve notes into the system.
If the treasury switched to issuing debt free currency (US Dollar Notes or something like that), they could use that for spending, even deficit spending but there would be no debt or interest payments attached. The risk for spending too much money into existence (just as it is today with the Fed) is inflation but with debt free currency we would not have debt.
The 'stupidity' you refer to is your own. Of course abolishing the Fed would not immediately erase all deficits in place, but it would erase owed interest, and over time stopping the interest would give us at least the chance to erase the debt, or at least put a dent in it. Why can't you comprehend that? With the Fed in place, that would never happen.
It would NOT erased owned interest.. Explain this to me..
I have US Savings bonds, paying me interest, tell me how abolishing the FED erases this interest due?
I have US Treasuries, again, tell me how abolishing the FED erases this interest due either?
It does NOT erase the debt, it does NOT erase interest due.. All it does is change WHO its paid to..
I cant comprehend what you say because it defies common sense and instills accounting practices only available in fantasy land.
Exactly, abolishing the Fed is only half of the equation. The Treasury issues debt in order to raise funds to purchases Federal Reserve notes into the system.
If the treasury switched to issuing debt free currency (US Dollar Notes or something like that), they could use that for spending, even deficit spending but there would be no debt or interest payments attached. The risk for spending too much money into existence (just as it is today with the Fed) is inflation but with debt free currency we would not have debt.
Debt free currency? What are you guys smoking? Any such creation of a US Dollar Note would only be sellable if it was backed back the US Dollar, which is then CREATING DEBT..
And who on goes earth is going to be buying such "notes" paying zero interest?
Debt free currency? What are you guys smoking? Any such creation of a US Dollar Note would only be sellable if it was backed back the US Dollar, which is then CREATING DEBT..
And who on goes earth is going to be buying such "notes" paying zero interest?
No one will be buying bonds because we won't be issuing them. We will issue currency directly into the system through the budgetary process but no debt will be issued. Deficit spending will result in currency, not debt being issued by the government.
We are all spinning our wheels here. Here are a few resources you can check out so you can catch up to speed with what we are talking about. These are some of the premier experts in monetary policy and monetary reform.
The 'stupidity' you refer to is your own. Of course abolishing the Fed would not immediately erase all deficits in place, but it would erase owed interest, and over time stopping the interest would give us at least the chance to erase the debt, or at least put a dent in it. Why can't you comprehend that? With the Fed in place, that would never happen.
He, and I, can understand what you are capable of explaining.
Since we don't understand what you are trying to say, my conclusion is you are not capable of explaining what you are thinking.
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