A fresh way to explain the Fed to the uninformed

[vincebodie]

Now first of all I heard or read this somewhere (not sure where), but several people I've mentioned it to at banks have verified it, and that is that only 4% of the US money supply is made up of FRN's these days.

So, it makes me think that when RP says "so the Fed just prints more money to pay for it", it just goes over many peoples' heads. We have been driven so far down this road to a cashless society, that many people don't even equate cash as money any more. Cash is old and dirty and parents tell their kids to wash their hands after touching it because you don't know who might have handled it. But credit cards, now those are nice and shiny and covered with pretty pictures and holograms, and they're yours alone. Those of us who still watch TV once in a while may have seen the Visa commercial where a busy coffee shop comes to a grinding halt when someone at the register tries to pay with cash (as if it sure does take a long time to do that vs. using plastic - god how gullible some people have become...).

Anyhow, my point is that if we can get people to understand that inflation is not just "printing more money", but that it is actually the manipulation of the value of our homes and our investments and our very lives at the stroke of a few keys on computers somewhere, then that might just turn on a light switch in their way of thinking. This kind of fraud is much easier to believe these days than something so old school as misuse of a printing press.

Just think, gold and silver have always had value and always will. Early paper money is now worth much more than it's original face value just for its collectibility factor. Maybe everyone should start "collecting" cash right now...

[Edu]

inflation is not just "printing more money", but that it is actually the manipulation of the value of our homes and our investments and our very lives at the stroke of a few keys on computers somewhereI just show them that it's a "note", just like when you buy a house you have to sign a note, a promise to pay it back, but this note is signed with no way to pay it back. It used to say "pay to the bearer on demand" then some amount in silver.
Show them one of the old bills that said that, keep it wrapped in plastic and in your pocket. Or print a picture of one from the net.
And the value of a house is like gold, if you can hold on to it through the collapse, it's a solid asset and will be worth about it's same value in food, clothing etc when it's all over.
You are right, it is a shame most people don't understand this simple concept, people say they aren't brainwashed, then when you tell them this true stuff it's hard to accept.

[scooter]

I don't really talk about the "down with the Fed" type stuff. The Fed's not really the problem. It's the fractional reserve system and the system where Congress spends relentlessly.

I'd talk about the inflation created from government spending and how that creates inflation, diminishes the dollar and savings, and forces people to live off of debt.

[vincebodie]

I don't really talk about the "down with the Fed" type stuff. The Fed's not really the problem. It's the fractional reserve system and the system where Congress spends relentlessly.

I'd talk about the inflation created from government spending and how that creates inflation, diminishes the dollar and savings, and forces people to live off of debt.

While I agree that inflation is the root of all monetary evils, the Fed shouldn't even have the opportunity to exploit a fractional reserve system in the first place - and neither should banks. If each bank was allowed to issue its own money (and back it with whatever commodities it chooses), but they were not allowed to create more money than the total value of their holdings (i.e. fractional reserves), then they would be legally bound to create profits only from ethically produced sources such as interest, fees, etc.

The same should hold true for the Fed (if we retain them as part of the system). Government spending should be in no way tied to the money supply; instead it should be tied directly to the amount of income it receives through legal and apportioned taxation.

Anyhow, my point was that many people have lost sight of the value of dirty old cash and accumulation of savings vs. their shiny credit cards and what their credit rating is. We need to get through to these people before it's too late.

IMHO

[angrydragon]

http://www.ronpaul2008.com/issues/inflation-tax/

[michaelwise]

I explain it to them like this.

As the financial noose tightens around the scrawny little necks of the American people, perhaps they will ask, as the pain becomes unbearable, why is this happening to me?

I fear that the sheeple are too stupid answer the question, so I give them the answer.

The Privately Owned Federal Reserve Bank Corporation is the root cause of the problem. They are at the top of the pyramid, enabling the booms and current bust that you must suffer the consequences of. Do not point the finger of blame the TV people tell you to, instead point the finger of blame at the one that enabled it to happen, The Federal reserve Bank Corporation!

[gharalam]

I actually had several people point out to me that a gold standard is a terrible thing to go back to.

Also that the federal reserve does not reduce the value of the dollar only in a closed economic system ( Like the one in a MMO ...his words).

I then pointed out under Hitler how the marks were printed out of thin air and caused a inflation on everything and bread was like 100x overpriced.

He then chose to ignore that statement and say I am being to cruel and overbearing to debate.

God I hate these sheep.

[gutteck]

How hard is to understand this:

The Federal Reserve is a private bank owned by some European banks which in return are owned by someone at the business district in London. This someone has an estimated network of about 500 TRILLION dollars. By the way he own most of the other national banks in the world.
How do they operate?
They lend money they don’t have and charge interest on it. They lend it to the US government and expect it to pay it back with our income tax.
Then they lend money(that is created out of nothing) to smaller banks and allow them to lend money they don’t have and charge interest on it. This is fractional lending.
So all the credit cards and loans for homes, cars, business etc cost banks ZERO $0.0 and we have to pay it with our work or assets and taxes.

Don’t like it? Vote for Ron Paul then.

[Paulitician]

The Federal Reserve is an irrelevant issue to most common folk. No need to explain.