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Remove the Fed = Remove all forms of loans (all types of credit), financial institutions (and therefore, banks, brokerage firms, insurance, etc..), all types of capital, all financial instruments considered "investments" (i.e. equity, bonds, mortgages, etc.).
It does not. People were able to get loans before the Fed.
It does not. People were able to get loans before the Fed.
Assuming you can find someone to lend it to you. Money supply goes literally to almost 0, so good luck with that. Sure I can find $5 to borrow easily, how about $1M? $1B? So while it will be possible to find loans, it will be literally impossible since the money supply is so small.
Saw that, come January 1st, 2018, the Federal Reserve was shut down, what would happen to our economy?
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.
sure but give me a secret heads up about 2 months beforehand, so that i can sell everything and go all post apocalyptic.
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.
Assuming you can find someone to lend it to you. Money supply goes literally to almost 0, so good luck with that. Sure I can find $5 to borrow easily, how about $1M? $1B? So while it will be possible to find loans, it will be literally impossible since the money supply is so small.
The question is then asked why anyone would need 1 billion? It's all relative. If the money isn't printed then prices reflect the money available.
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