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Location: Sitting on a bar stool. Guinness in hand.
4,428 posts, read 6,508,145 times
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Let me just through this out there. OK so I see that a lot of people on CD's forums want to abolish the federal reserve. OK I'm an open minded guy and maybe will to go for that. But I was born, heck most or all of us were born after the fed was created. So I don't thing most of use know a life without it. So tell me in as much detail as you can what are the possible upsides and downsides to riding ourselves of the fed. Let me stipulate, that I would like to heard mostly economic impacts not political rhetoric.
Go buy a copy of "The Creature from Jekyll Island" . That book will tell you everything you want to know about the Federal Reserve..created by the bankers, run by the bankers and keeps the bankers interests at the top at all times.
I'll post an opinion later on, but want to post an observation for now. Ron Paul started questioning Bernacke this morning, and CNBC cut away from his questions for commentary. As soon as Bernacke started talking, they quickly cut off the commentary and went back to him.
I'll let everybody come to their own conclusions on it.
The FED is a scam. The faster we reform it the better. Why can't it be controlled by the Congress...oh wait that's a bad idea. Just phase it out then. The best replacement is a commodity-based money created through domestic investment. The FED was designed purely to take the real property of all Americans and give control to the world's elite. The system has to fail as it depends on continually increasing growth. With a fixed money supply we get:
Upsides: 1) No inflation 2) No more real estate bubbles 3) High savings rate 4) More investment in innovation 5) More transfer of wealth to the working (productive) people 6) No more national debt 7) Low energy prices 8) Higher standard of living
The FED is a scam. The faster we reform it the better. Why can't it be controlled by the Congress...oh wait that's a bad idea. Just phase it out then. The best replacement is a commodity-based money created through domestic investment. The FED was designed purely to take the real property of all Americans and give control to the world's elite. The system has to fail as it depends on continually increasing growth. With a fixed money supply we get:
Upsides: 1) No inflation 2) No more real estate bubbles 3) High savings rate 4) More investment in innovation 5) More transfer of wealth to the working (productive) people 6) No more national debt 7) Low energy prices 8) Higher standard of living
Downsides : NONE
Our government owns no gold to back the new currency with, if we put an end to the federal reserve notes. We'd see massive deflation. That being said, I'll take deflation over debt serfdom any day. What we need is competing currencies.
So the Government is basically worthless? I would think that the miles of roads, military, national parks, vast mineral wealth and the Government itself could be used as a commodity to back up new Government notes? They collect income tax, that would be a dividend on the investment, or is the whole system fundamentally worthless? The gold standard is a bad idea in today's world, I do support partial gold and silver reserves to back up circulating money though.
Competing currencies would complicate trade unless they were tied to a national standard currency.
Location: Sitting on a bar stool. Guinness in hand.
4,428 posts, read 6,508,145 times
Reputation: 1721
Quote:
Originally Posted by tallrick
Upsides: 1) No inflation 2) No more real estate bubbles 3) High savings rate 4) More investment in innovation 5) More transfer of wealth to the working (productive) people 6) No more national debt 7) Low energy prices 8) Higher standard of living
Downsides : NONE
Can you be more specific on the whys such upside would happen? What type of shifts would happen to inhibit or to encourage these results?
A while ago another poster (Philip?) suggested something along the lines of pegging the dollar to units of energy, which I thought was a pretty decent idea.
One thing that I liked about the idea was that it spreads out the portfolio and makes it harder to corner the market.
Short-term: Banks scramble for overnight loans and develop a system with eachother to meet the need. Account holders encounter no change in services, although there is a small panic run on funds. The stock market dips 33% in one week, then regains to the level before the Fed's elimination. The White House temporarily freezes prices on all CPI-related goods to reduce opportunists taking advantage of the emerging banking market.
Medium-term: Inflation is 0% due to the re-adoption of the gold standard. Worthless paper money and cheap coins are replaced by metals and gold certificates worth what they say they are worth. Trade is normalized using gold for day-to-day transactions. Electronic transactions fall in popularity. Visa and MC eventually concede to the purchasing power of Americans and accept gold deposits as payment.
Long-term: Inflation remains 0% because gold is tied to the cost of living, which does not increase because the Fed cannot make electronic money out of thin air, which used to automatically make money less valuable, with less buying power (when there is a greater supply of any "thing", each of them is worth less due to decreased demand). COLA increases are eliminated as unneccessary. Capitalism prospers. America wonders why it paid the Fed, a private company, a portion of their money to do what Americans did for themselves with their own money, not play money, long before the Fed was created on Jeckyl Island.
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