End the Fed

Posted by Vinay 5 months, 4 weeks ago to Economics
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"The long history of central banking, and especially over the last 100 years of paper monies and out-of-control government deficit-spending partly funded by “monetization” of the debt, has more than clearly demonstrated that the epoch of modern central banking needs to come to an end. And in its place, we need the opening and freeing of financial markets to private competitive free banking, with markets—meaning all of us—deciding interest rates, what we want to use as money, and how much of it to have. Anything else is a serious distortion of the free market."
SOURCE URL: http://www.thesavvystreet.com/why-central-banking-must-end/

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  • Posted by freedomforall 5 months, 4 weeks ago
    "By their fruits you will know them: "
    To buy what $1.00 could buy in 1913 requires that you spend $25.36 in 2018
    Conversely $1.00 in 1913 is worth 3.9 cents in 2018.

    This has been done to give unearned profits to the banking cartel and to allow the banking cartel to control America's government and to manipulate America's productive ability, giving easy credit to favored businesses and purposely destroying other productive competing businesses.
    Definitely End the Fed.

    However, the real difficulty is how to do it.
    The world economy is addicted to easy fiat credit and the people would suffer undeserved damage in the collapse of the economy that would result from the reduced spending of more limited liquidity.
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    • Posted by Robert_B 5 months, 4 weeks ago
      Good points. Regarding the last paragraph above, there has to be some competition. The truth is, I don't know if a second legal tender, regional interest rates and printing, or any other form of competition is plausible.
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  • Posted by freedomforall 5 months, 3 weeks ago
    I certainly agree that the fed must go and that in the long run a free market will be a more efficient process.
    I agree with the need to get rid of the fed, but the devil is in the details.

    What is your plan to replace the fed without destroying the economy that is addicted to fiat money and easy credit?
    For example, if all the debtors in the market are forced to cut future expenditures to match future revenues, the market will contract to a much smaller size and many will lose jobs as a result. The current economy lives on sales with easy credit.
    How do you propose to change the system so that the system is stable and economically sound without widespread suffering to innocent people in the short term?
    How do you propose to convince the con-gress to repeal the federal reserve act?
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  • Posted by chad 5 months, 4 weeks ago
    The easy way to end the Fed would be if value currency were allowed to circulate. Those who chose the fiat currency would deal with its devaluation (inflation) and those who chose the value-based currency would not. It wouldn't take long for people even if they actually believe the lie of fiat currency to start using real money. The fiat currency would be displaced, not suddenly necessarily as it would take some time for the momentum to gain enough speed.
    I would say the likelihood of the FED ending is about 0. Too many economists, member banks and other industries are too invested in it working the way it does.
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  • Posted by term2 5 months, 4 weeks ago
    The fed is a power hungry and political institution. Get rid of it ASAP
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    • Posted by  $  Dobrien 5 months, 4 weeks ago
      It is privately owned. It is not a political institution.
      It is a so called instrument of the govt.

      The federal government sets the salaries of the board's seven governors, and it receives all the system's annual profits, after a statutory dividend of 6% on member banks' capital investment is paid, and an account surplus is maintained. In 2015, the Federal Reserve earned net income of $100.2 billion and transferred $97.7 billion to the U.S. Treasury.[23] Although an instrument of the US Government, the Federal Reserve System considers itself "an independent central bank because its monetary policy decisions do not have to be approved by the President or anyone else in the executive or legislative branches of government, it does not receive funding appropriated by the Congress, and the terms of the members of the board of governors span multiple presidential and congressional terms."
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      • Posted by 5 months, 4 weeks ago
        Not really a private institution. It functions just like the Bank of England or the Reserve Bank of Australia and other central banks around the world that are owned by the government.
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        • Posted by Lucky 5 months, 4 weeks ago
          All functions of the Fed, all executive appointments, all revenue streams, are controlled by the US government.
          Thus, regardless of who or what the legal but nominal owners are, it is not a private institution. So yes, it is an instrument of government.

          In political terms, the arrangement is not communism or socialism, it corresponds to fascism where private capital is harnessed by an authoritarian regime.

          To find out why it was setup like that, the crackpot/nazi websites only mislead. I recall a long discussion on the Fed here in the Gulch about a year ago, there was some good detail presented.
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        • Posted by  $  Dobrien 5 months, 4 weeks ago
          Sorry 20 private stockholders own the US Federal Reserve. the Fed does not receive its funding from Congress. Instead, its funds come from its investments. It receives interest from U.S. Treasury notes it acquired as part of open market operations. It receives interest on its foreign currency investments. Its banks receive fees for services provided to commercial banks. These include check clearing, funds transfers, and automated clearinghouse operations. The Fed also receives interest on loans it makes to its member banks. The Fed uses these funds to pay its bills, then turns any "profit" over to the U.S. Treasury Department.

          The 12 regional Federal Reserve banks are set up similarly to private banks. They store currency, process checks, and make loans to the private banks within their area that they regulate. These banks are also members of the Federal Reserve banking system. As such, they must maintain reserve requirements. In return, they can borrow from each other at the fed funds rate when needed. They can also borrow from the Fed's discount window at the discount rate as a last resort.

          To be a member of the Federal Reserve system, commercial banks must own shares of stock in the 12 regional Federal Reserve banks by law. But owning Reserve bank stock is nothing like owning stock in a private company. These stocks can't be traded. These don't give the member banks voting rights. These pay out dividends mandated by law to be 6 percent.
          They are the Goldman Sachs, Rockefellers, Lehmans and Kuhn Loebs of New York; the Rothschilds of Paris and London; the Warburgs of Hamburg; the Lazards of Paris; and the Israel Moses Seifs of Rome.
          CPA Thomas D. Schauf corroborates McCallister’s claims, adding that ten banks control all twelve Federal Reserve Bank branches.
          He names N.M. Rothschild of London, Rothschild Bank of Berlin, Warburg Bank of Hamburg, Warburg Bank of Amsterdam, Lehman Brothers of New York, Lazard Brothers of Paris, Kuhn Loeb Bank of New York, Israel Moses Seif Bank of Italy, Goldman Sachs of New York and JP Morgan Chase Bank of New York
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          • Posted by 5 months, 4 weeks ago
            The ownership is immaterial. The Fed operates like any other central bank. Feel free to read the attached article to see why.
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            • Posted by  $  Dobrien 5 months, 4 weeks ago
              If accuracy is immaterial to you that is your prerogative. Other Gulchers might want the facts.
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              • Posted by 5 months, 4 weeks ago
                No, not the accuracy, the ownership of the Fed is immaterial to its functioning.
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                • Posted by  $  Dobrien 5 months, 4 weeks ago
                  It is a vile secretive organization that has no accountability and has been instrumental in destroying the middle class partly why we have so many homeless. It manipulates the economy for the benefit of the Cabal.

                  Cabal/NWO Control Structure
                  5 Dec 2017 - 3:26:34 PM
                  +FLY+ = Rothschilds owners of the central banks in virtually every country on the planet.
                  Banks control Gov'ts
                  Gov'ts control people
                  SA controls elected people.
                  SOROS controls organizations of people.
                  Ready to play?
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  • Posted by  $  mminnick 5 months, 4 weeks ago
    I am no fan of the Fed but what do you replace it with? Going to a standard (Gold, silver, platinum) might suffice but that is not clear.
    There must also be minimum dislocation in values of the various countries currency and debt instruments. Over time this could/would evolve to a different steady state condition in the New Economy.
    The whole process is potentially world wrecking and well as world saving. There is also a concern abvout changing the US system without a similar change in the remainder of the world. Going it alone does not usually work for anybody. Given the disparity in American views from the political POV, how stable would a US only change be? each party changing the rules when they are in. (Like the Senate does now).
    Just some thoughts
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    • Posted by  $  blarman 5 months, 4 weeks ago
      What is the purpose of the Federal Reserve? To control, i.e. manipulate the money supply. And they get rich in the process. One of the ways they do this is by factoring in inflation into the cost of money so as to devalue it, thus devaluing the value of money itself and especially savings while making it cheaper to borrow money. This cheaper borrowing especially applies to the US government. Take away the access to "cheap" money and the US debt time bomb is suddenly lit and on a very short fuse.
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    • Posted by 5 months, 4 weeks ago
      No need to replace the money supply and interest rate manipulation of thr Fed. \Nor its bank subsidization via the lender of last resort liquidity.
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