Let's Federalize the Fed

[sratiug]

Is now the time to launch a campaign to "Federalize" the "Federal" Reserve System? Fed apologists on this board say that the Fed's private owners do not profit from their position so I'm sure they won't mind.

[N13]

People get killed when you talk like that.

[runderwo]

Why would I want the Fed's losses to be on the government's balance sheets?

You can escape the currency, but you can't escape taxation.

[Broadlighter]

Is now the time to launch a campaign to "Federalize" the "Federal" Reserve System? Fed apologists on this board say that the Fed's private owners do not profit from their position so I'm sure they won't mind.

They don't profit directly. They own the Fed through their share holdings in the member banks.

Ron Paul proposed in his economic plan to open the Fed's meetings for public viewing. I think that's a step in the right direction.

[TruthAtLast]

since the Constitution gives us the ability to mint our own currency, and the Government can determine the value of any such coin. why don't we just mint a 9 trillion dollar coin (maybe a copper-nickel clad coin the size of a hockey puck as to fit all of the zeros), the just give it to the Fed to pay off our debt. :D **sarcasm**

The Fed's fiat currency is just a piece of paper anyway. it has value because we have agreed that it has value. So just replace it with money from the U.S. mint. The Treasury keeps printing the money and we keep sending it to the Fed who then waves their magic wand to give it face value. Just stop sending it to them. Then pass a bill making fractional reserve banking illegal that way banks can't loan something they don't have. They shouldn't even be allowed to loan on the "potential" of money (like the repayment of a previous loan or anticipated interest).

[humanic]

"The solution is not to politicize the Federal Reserve. It is to abolish it."
- G. Edward Griffin, author of The Creature From Jekyll Island

[This is taken from the article "How Collectivists Fund Their Own Opposition And How Not To Be Fooled By It" by G. Edward Griffin, which is available at the bottom of this (http://www.freedom-force.org/freedom.cfm?fuseaction=activities)page.]

Concerning the film The Money Masters: "There is just one problem with it. It offers a false solution – which is to say that it offers no solution at all. The alleged solution is that we should abandon our present fiat money system and adopt another one very much like it. Yes, it advocates fiat money! The proposal is that we should take the power to create money-out-of-nothing away from those big, bad bankers and turn it over to those nice, trustworthy politicians where, supposedly, it will be used for the benefit of “the people.” It is naïve to think that politicians are any more trustworthy than bankers. It is equally naïve to think that, because politicians are elected, they will protect the people they represent. The reality of present-day “democracy” is that politicians serve special interests with financial clout, not voters. With enough money, votes can be purchased through media exposure. Politicians with the largest campaign budgets are almost always the winners. Turning over control of the Fed to the politicians would change nothing but the outward appearance. The solution is not to politicize the Federal Reserve. It is to abolish it.

The problem with money created out of nothing is not who does it but that it is done at all. The solution to fiat money is not more fiat money. It is real money based on tangible assets, and none has yet been discovered that serves as well as gold or silver.... To propose that we now can live with fiat money based on that myth is a non-solution that is irrational and dishonest."

[Sarge]

I can just see it now, Federalize the Fed and let the Congress do earmarks with the Fed money.

They would just screw it up more than it is already. Less Govt. is better!

[runderwo]

Then pass a bill making fractional reserve banking illegal

This would be unprecedented in the history of banking. Good luck.


They shouldn't even be allowed to loan on the "potential" of money (like the repayment of a previous loan or anticipated interest).

Why not?

They eat the loss when their toxic debt starts to fester. The only moral hazard left with private deposit insurance and no central bank bailouts is that of limited liability.

[Jodi]

"The solution is not to politicize the Federal Reserve. It is to abolish it."
- G. Edward Griffin, author of The Creature From Jekyll Island

[This is taken from the article "How Collectivists Fund Their Own Opposition And How Not To Be Fooled By It" by G. Edward Griffin, which is available at the bottom of this (http://www.freedom-force.org/freedom.cfm?fuseaction=activities)page.]

Concerning the film The Money Masters: "There is just one problem with it. It offers a false solution – which is to say that it offers no solution at all. The alleged solution is that we should abandon our present fiat money system and adopt another one very much like it. Yes, it advocates fiat money! The proposal is that we should take the power to create money-out-of-nothing away from those big, bad bankers and turn it over to those nice, trustworthy politicians where, supposedly, it will be used for the benefit of “the people.” It is naïve to think that politicians are any more trustworthy than bankers. It is equally naïve to think that, because politicians are elected, they will protect the people they represent. The reality of present-day “democracy” is that politicians serve special interests with financial clout, not voters. With enough money, votes can be purchased through media exposure. Politicians with the largest campaign budgets are almost always the winners. Turning over control of the Fed to the politicians would change nothing but the outward appearance. The solution is not to politicize the Federal Reserve. It is to abolish it.

The problem with money created out of nothing is not who does it but that it is done at all. The solution to fiat money is not more fiat money. It is real money based on tangible assets, and none has yet been discovered that serves as well as gold or silver.... To propose that we now can live with fiat money based on that myth is a non-solution that is irrational and dishonest."

Thank you for the link!! The quote at the bottom of page 2 and top of page 3 -
They are quite good at putting forth their own opposition - writers like Greider - who will sound the alarm and rally the troops but lead them exactly nowhere. Sounds exactly like rush limbaugh.

[sratiug]

since the Constitution gives us the ability to mint our own currency, and the Government can determine the value of any such coin. why don't we just mint a 9 trillion dollar coin (maybe a copper-nickel clad coin the size of a hockey puck as to fit all of the zeros), the just give it to the Fed to pay off our debt. :D **sarcasm**

The Fed's fiat currency is just a piece of paper anyway. it has value because we have agreed that it has value. So just replace it with money from the U.S. mint. The Treasury keeps printing the money and we keep sending it to the Fed who then waves their magic wand to give it face value. Just stop sending it to them. Then pass a bill making fractional reserve banking illegal that way banks can't loan something they don't have. They shouldn't even be allowed to loan on the "potential" of money (like the repayment of a previous loan or anticipated interest).

I agree completely.

[sratiug]

To everyone, I understand this is a bad idea. The point is to bring attention to the private nature of the FED, and get everybody interested in changing it. Ask people why imminent domain can't be used to take over all the banks for the benefit of the country. Then the government can just run the banks instead of bothering with a bunch of new regulations. It works to get private homeowner's land for foreign corporations, it should be good enough to help out the homeowners themselves, saving millions of people from foreclosure.

Again, I understand it's a bad idea in practice. But maybe not for attacking the FED system.

[runderwo]

To everyone, I understand this is a bad idea. The point is to bring attention to the private nature of the FED, and get everybody interested in changing it. Ask people why imminent domain can't be used to take over all the banks for the benefit of the country. Then the government can just run the banks instead of bothering with a bunch of new regulations. It works to get private homeowner's land for foreign corporations, it should be good enough to help out the homeowners themselves, saving millions of people from foreclosure.

Again, I understand it's a bad idea in practice. But maybe not for attacking the FED system.

This idea is fraught with more moral hazard than central banking itself. I would have to hope my political forecasting is correct enough so that I can do a 100% cash-out refinance and then claim to be a foreclosure victim so that I profit as much from the public dole as everyone else would in this scheme.