Why don't we nationalize the federal reserve? (debt, interest, tax)

[killer2021]

Here is a novel idea. Instead of having the privately owned central bank control our money what we could do is nationalize the bank. Then eliminate all federal taxes. Right now the government collects about 1.5 trillion in revenues. If the money supply is at 15 trillion then you would simply need to print 10% of the money supply to raise the necessary capital to finance government operations.

People would still pay, "taxes" but it would be in an indirect fashion through a declining value of the dollar.

[jhtrico1850]

You mean you want more expensive milk and gas?

[joey2000]

As long as we're in Neverneverland, can I fly?

[wheelsup]

Killer, they already do that. Something like 80% of all money printed last year was newly created money.

Read "A Second Look at the Federal Reserve", it's an interesting (but long) read.

[gwynedd1]

Originally Posted by killer2021

Here is a novel idea. Instead of having the privately owned central bank control our money what we could do is nationalize the bank. Then eliminate all federal taxes. Right now the government collects about 1.5 trillion in revenues. If the money supply is at 15 trillion then you would simply need to print 10% of the money supply to raise the necessary capital to finance government operations.

People would still pay, "taxes" but it would be in an indirect fashion through a declining value of the dollar.

Hi killer2021,

I think a 10% inflation rate would be a little high but there is already an inflation tax. Deficits are just taxes not debt. We could pay of the national debt tomorrow if we wanted, just convert interest bearing treasuries into treasury notes( the impact would be inflation). I see no issue with excise taxes to bring in some of the notes. I agree that it should be run the the treasury dept.

The problem is that with the fractional reserve system the banks collect most of the tax revenue. Banks expand the money supply far more than the Feds. If the national debt is 10T and there if 55T out in circulation, who benefits from the 45 Trillion in inflation? Why its the banks who collect interest on it. Thus the Feds only collect a small portion of this tax. However the financial industry runs our government so that figures.

[gwynedd1]

Originally Posted by wheelsup

Killer, they already do that. Something like 80% of all money printed last year was newly created money.

Read "A Second Look at the Federal Reserve", it's an interesting (but long) read.

Hi wheelsup,

That would have been dandy had they then cut taxes. We would have had a stabilizing currency to prevent deflation not at interest to banks. Instead they dropped the interest rates which is a bank tax cut.