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No one would have any more bills to pay. Good thing, because they wouldn't have any incomes to pay them with. The entire economy would collapse in a heap on itself, and we would become a third world country.
Other than that, sounds like a great idea. You should write your congressman.
really????.... the USA survived until 1913 with out the foreign owned FED
It won't matter because without the Fed, your money is just pieces of paper, totally worthless.
This is not necessarily true.
I wouldn't assume that the general public would reject the whole concept of fiat currency just because the fed was eliminated. Most people don't know what the fed is in the first place.
So in the absence of the fed you'd probably see the reverse. Without all the digital credit management provided by the fed, you'd have a massive decrease in capital across all parts of the economy. There would essentially be no lending, a massive decrease in the volume of currency, which would drive up its price.
So my best guess is that you'd see the hordeing of paper dollars and a deflationary spiral, where people were choosing to accumulate dollars instead of choosing to invest dollars.
The banking system creates money, through something called Fractional Reserve Banking. The regulations are set by the Fed. The Federal Reserve (Monetary Policy) along with Fiscal Policy (Taxation/IRS, etc..) manages our money.
Public banks will only work if there's a lot of small ones, not 1 giant one. That's a different topic. We're talking about The Fed itself.
A public bank could replace or supplant the Fed.
The public bank could fund for instance HC and infrastructure, maybe the military.
Fractional reserve is passe' as far as the Fed and its member banks are concerned. Loans create deposits. And since QE banks are still sitting on huge excess reserves. So they don't need our deposits to lend.
It depends *entirely* - like basically 100% -- on the policy response. And it's unrealistic to suggest there would be none. The central bank would never just disappear without some kind of alternative plan for monetary policy.
So it's impossible to have any sort of informed discussion about this since we have no clue what that 'new system' would look like.
War or other national sized catastrophe could do it. Most likely have to wipe out the whole country not just DC.
War or other national sized catastrophe could do it. Most likely have to wipe out the whole country not just DC.
But then you're talking about a totally different event, one that just happens to include a collapse of the central bank along with other catastrophes.
OP is suggesting a situation where everything is fine and we just decide "kill the central bank" one day, with no thought or discussion about what laws, mechanisms, or institutions would replace its current functions.
It won't matter because without the Fed, your money is just pieces of paper, totally worthless. What you should do is buy everything and anything with all your savings.
Prepare to barter.
Our money is backed by the productivity, security and stability of our nation and it's rule of law/gov't.
If the Fed was closed we would have to implement a new money creation and regulatory system, so that our USD are still useful.
But then you're talking about a totally different event, one that just happens to include a collapse of the central bank along with other catastrophes.
Right. This would be China or Russia or God 'getting rid of the Fed'.
The entire US economy would collapse. But more-importantly, the American empire would collapse.
The United States runs a $550 billion trade deficit, and keeps hundreds of thousands of troops stationed all around the world. Neither would be possible without the Federal Reserve.
Most of the US economy is built on asset speculation. Think of what so-called wealth is, it is stocks, real-estate, etc. And what sets the value of these things? Speculators who bid up the prices. If we couldn't create new money, there wouldn't be enough money to continue bidding up asset values. As long as we can keep printing more money, stocks can go up and up and up and up.
This system is able to create "assets on paper"(IE credits), which can be used to buy "real assets"(such as natural resources). Basically, so long as this paper credit can be created out of thin air, and can used to buy "real wealth", then whoever can print the dollars, or has the best access to those printed dollars, will be at a huge advantage, and can accumulate and control all the real wealth across the entire world.
The whole system is about making sure industrialists and other elites, will always have unlimited access to capital, at below-market rates, so they can buy up the real assets of the world, and use them for their maximum profitability.
In simple terms, you want the larger, more-efficient businesses or farms, to have access to unlimited and cheap capital, to buy-out or displace the less-efficient businesses or farms. You want US companies to have unlimited and cheap capital to expand their businesses both in America, and across the world.
That is the true "top-down" economic system. Where money gets constantly pumped into the system "at the top"(IE the bankers), and it slowly gets diffused across society, eventually going right back into the hands of the bankers, and the whole process repeats.
But as perverse as the system might seem, it works wonderfully. You don't want the wealth equally divided. If everyone owned two acres of land each, there would be no industry, there would be no need for large, efficient machinery. The more centralized the system, the more-efficient the system.
America became a superpower with this system, and can only stay a world superpower by keeping it, and expanding it. We don't use it because a bunch of evil people somehow corrupted the Constitution, or because corporations bought our politicians.
We use it because it works.
So unless you want the dissolution of the United States, and for whatever is left to become a third-world country, probably ravaged by Civil War, and for China to replace the United States as world superpower, with a Russia standing ready to gobble up Europe, as the global economy collapses and destabilizes governments across the world, then I advise you to just close your eyes and forget all about the Federal Reserve.
really????.... the USA survived until 1913 with out the foreign owned FED
Barely.
If a man pours concrete without a government costume on it doesn't harden.
I learned that from my statist friends.
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