A major problem would the utter financial confusion in the Economy if the Fed was put down all at once.But perhaps it can be done a piece at a time!
Trump Wants to get rid of the Income tax to individuals!
According to the Grace Commission report of 1982 the tax collected goes not to Washington but goes to the Fed..To the Fed as interest due on loans the Fed. made previously to Washington.If the Income tax is not collected by Washington,it can't be sent to the Fed.
If you don't end something all at once, it won't happen. In Virginia, we had a naïve Governor who wanted to end the Personal Property taxes on vehicles. He wanted to do it over several years so it wouldn't hurt as much. Naturally, a few years later, politicians declared an emergency and so we are still stuck with a reduced tax which has never gone away decades later. Do it all at once or it simply won't happen.
Until Americans stop voting for two corrupt parties, nothing else really matters. Mark my words, the GOP will pile onto the National Debt like there is no tomorrow. This is why they won't get rid of the Fed, as they will buy debt when it cannot be sold at the interest rates the Treasury wants.
I don’t understand these paragraphs; can someone explain?
“ One elegant way to base the dollar on gold without needing to buy up trillions of gold is to offer the 261 million ounces of gold in the Treasury to the public fixed at the current gold price -- say, 2600 dollars per ounce.
And then pass a law saying if the public is buying gold -- in other words if there's inflation, which makes 2600 below-market -- Treasury has to buy back fresh gold on the open market before it pays bankers a dime of interest on the debt.”
He's essentially saying that the Treasury would have to maintain a certain amount of gold reserves. If the currency weakens so that people start buying gold at a fixed price from the Treasury (and then possibly immediately selling it for a higher price on the open market), the Treasury would need to raise the fixed price of gold, and buy back gold at the new market-clearing price to get it's reserves back to the mandatory level. Until reaching that point, it would pay no interests on bonds.
In practice what that means is the government couldn't just spend money it doesn't have because bankers wouldn't buy bonds they know couldn't be repaid.
Very good question, especially what money does the Treasury have when it is in a constant deficit problem? Those debts are to individuals as well as a few foreign countries.
A statement that 84% of Americans agree that taxpayers should not have to foot the bill for irresponsible bank management is meaningless for multiple reasons: 1) Politicians don't care what people want 2) Both parties are happy to bail out banks and never charge management with anything and 3) until Americans decide to abandon the two most corrupt parties, nothing will change. The GOP will never end the Department of Education and they would never try to end the Fed, as many of the GOP like the Fed, as it enables their deficit spending. We might as well argue about how many angels can dance on the head of a pin, because the Fed is going nowhere.
Small nitpick. One function of the Fed is “financial services” — i.e. check clearing and automated payments (ACH). Indeed most Fed employees work in financial services. I know this because I was one of them for a while.
If you write a check drawn on a bank in another district, it physically goes through at least two Federal Reserve Bank branches. Direct deposit of your paycheck is most likely processed by a Fed computer. Writing this code was my job.
So these services have to keep running. Probably it could be spun off into a private clearing bank and opened up to competition. Not hard but necessary.
Are you suggesting Congress, in order to get rid of the Fed, should make the over $18 trillion in commercial bank debt to account holders into US legal tender money effectively giving the banks a Debt Jubilee? Are you not aware that the "in-game token" US paper dollar is the actual US legal tender money the banks owe to their account holders? Are you suggesting that banks should be placed in charge of creating US money supply by generating deposits as loans? Are you suggesting that by removing one little piece, the Federal Reserve, out of a parasitic debt-based banking system that spans the entire globe is gonna fix everything?
The Fed should clean up the mess they made first, before abolishing it. Or else so much financial chaos will follow that the Fed will be begged to come back.
🙏🏻 Great article, thank you! Yes, something needs to be done and hopefully the new administration will make this happen. Also, they need to make it illegal for banks to create new money when they create new loans.
A lot of people do not realize that when a bank creates a mortgage, they are creating new money out of thin air and then charge interest off that money. For the average working person they will have to work approximately 15 years of their life to pay interest to a bank who creates the money by typing a few keys on the keyboard.
If the banks are creating a lot of loans then inflation will shoot up. And on top of that if the FED is performing QE, buying the mortgages from the banks with new money they create out of thin air, it creates even more inflation, it's a double whammy.
I know banks perform functions that people want and need like safely holding their money and wire transfers and other services but are those services worth the cost of inflation, the cost of working 15 years more of your life to pay off a mortgage?
Banks still need to adhere to the capital adequacy ratios but they have the person applying for a loan pay for that.
For example, a person gets a loan for $500,000 for a house. The banks creates the loan, which creates the $500,000 in new money out of thin air. The bank ask the person for 20% down and then the banks has to keep 7% of that to cover the capital adequacy ratios and then they can use the rest to cover the ratio on other loans they make where they do not ask for a down payment.
It is mind blowing that the banks are this entrenched and have been doing this for so long and 99.9% of the population have no idea how this works, they think that banks lend out the money they have saved.
I don't think the steps you listed are insurmountable at all - dependent on one key factor - overwhelming public support. That's where the battle, to get this done and maintained, will be.
Educating them is the problem, because they've been taught it's to complicated and then provided cheap and consuming distractions, to keep them from digging deeper, learning and asking questions. They're taught to keep themselves in the much simpler world of weekend sports, netflix, doordash, social media meme binges and celebrity whore-shipping. For instance, how many (not reading your SS) know that Rep Thomas Massey introduced the Federal Reserve Board Abolition Act, in May of this year and Sen. Mike Lee did the same in June??
The issue is, without constant and devastating pressure from the masses, will never get the votes to repeal the Fed. Just because it's a great idea, would benefit the people and is supported by the regime in power, doesn't mean the legislators will vote for it. We just saw this, in the choice of the Senate Majority Leader vote.
Unless the people are highly engaged and in the faces of their elected congressional members, it will never happen. And if it did, then they'd also need to be militantly active, against any congressional action to reverse or re-instate the fed, after Trump's next term. The bankers and financiers would push hard to get it reversed and spend billions in the effort.
Past all that, there is no time like the present, with a president that'd champion this.
This is a totally different America than the one President Jackson was in charge of. How exactly do you make the currency backed by gold again? Do you realize how many trillions of dollars are out there?
Yes, end the Fed. A quick check of history reveals that the Fed has mismanaged the economy, rather it has managed the economy to benefit the Bankers Cabal of Central banks, read, the ultra rich. The last four years has showed us the inability of the Fed (in collusion with the Deep State government) to properly manage the economy, which only needs a very little guidance if the free market is allowed to naturally function. The dollar (Federal Reserve Note, i.e., promissory note) is devalued and weak, and likely to collapse under $36 Trillion of government debt. The best hope is to free the dollar from the Fed and let it function as it should. Yes, kill the Fed.
The Treasury Department,with some modifications, can do whatever the Federal Reserve claims to do. Can't back any system with gold,there is not enough gold to do this with in a modern Economy.
The BRIC"s use Baskets of commodities,on & in the land!
The Federal Reserve Act,...Amendment 16 Income Tax Law.
!according to the book "the law that never was'' never received enough positive votes to pass,but was pushed thru into law any way.Since 1913 the Federal Reserve has been a giant looting operation sucking the wealth out of the nation & giving that wealth to the Bankers & financiers who work the financial markets & banking!
There is another illegal part to this scam that is not financial.
The Federal Government in Washington has been warped from a limited mandate government with limited powers in the Constitution.It has been warped into giant,Unconstitutional Central Government with vast,but unauthorized Powers.
If you saved one dollar in 1813 in a safe it would be worth $1.27 in 1913, 100 years later.
If you saved one dollar in 1913 in a safe it would now be worth $0.02 today.
That is two cents or a loss of 98% in value.
The only thing that changed in 1913 was the Federal Reserve was put in charge of price stability.
So yes of course you should end the Fed but you are more likely to see a pig flying over a herd of unicorns!
A major problem would the utter financial confusion in the Economy if the Fed was put down all at once.But perhaps it can be done a piece at a time!
Trump Wants to get rid of the Income tax to individuals!
According to the Grace Commission report of 1982 the tax collected goes not to Washington but goes to the Fed..To the Fed as interest due on loans the Fed. made previously to Washington.If the Income tax is not collected by Washington,it can't be sent to the Fed.
If you don't end something all at once, it won't happen. In Virginia, we had a naïve Governor who wanted to end the Personal Property taxes on vehicles. He wanted to do it over several years so it wouldn't hurt as much. Naturally, a few years later, politicians declared an emergency and so we are still stuck with a reduced tax which has never gone away decades later. Do it all at once or it simply won't happen.
Who is alive now who could save money in 1913? No one; they are all dead.
True, but their kids were robbed by the off-shore banking cartel known as the Fed.
Hand count double verified paper ballots for US citizens only and abolish the FED, we’re golden!
Until Americans stop voting for two corrupt parties, nothing else really matters. Mark my words, the GOP will pile onto the National Debt like there is no tomorrow. This is why they won't get rid of the Fed, as they will buy debt when it cannot be sold at the interest rates the Treasury wants.
So sad but so true, I really hope something will change but there are a lot of people feeding out of the trough.
I don’t understand these paragraphs; can someone explain?
“ One elegant way to base the dollar on gold without needing to buy up trillions of gold is to offer the 261 million ounces of gold in the Treasury to the public fixed at the current gold price -- say, 2600 dollars per ounce.
And then pass a law saying if the public is buying gold -- in other words if there's inflation, which makes 2600 below-market -- Treasury has to buy back fresh gold on the open market before it pays bankers a dime of interest on the debt.”
He's essentially saying that the Treasury would have to maintain a certain amount of gold reserves. If the currency weakens so that people start buying gold at a fixed price from the Treasury (and then possibly immediately selling it for a higher price on the open market), the Treasury would need to raise the fixed price of gold, and buy back gold at the new market-clearing price to get it's reserves back to the mandatory level. Until reaching that point, it would pay no interests on bonds.
In practice what that means is the government couldn't just spend money it doesn't have because bankers wouldn't buy bonds they know couldn't be repaid.
Very good question, especially what money does the Treasury have when it is in a constant deficit problem? Those debts are to individuals as well as a few foreign countries.
A statement that 84% of Americans agree that taxpayers should not have to foot the bill for irresponsible bank management is meaningless for multiple reasons: 1) Politicians don't care what people want 2) Both parties are happy to bail out banks and never charge management with anything and 3) until Americans decide to abandon the two most corrupt parties, nothing will change. The GOP will never end the Department of Education and they would never try to end the Fed, as many of the GOP like the Fed, as it enables their deficit spending. We might as well argue about how many angels can dance on the head of a pin, because the Fed is going nowhere.
Small nitpick. One function of the Fed is “financial services” — i.e. check clearing and automated payments (ACH). Indeed most Fed employees work in financial services. I know this because I was one of them for a while.
If you write a check drawn on a bank in another district, it physically goes through at least two Federal Reserve Bank branches. Direct deposit of your paycheck is most likely processed by a Fed computer. Writing this code was my job.
So these services have to keep running. Probably it could be spun off into a private clearing bank and opened up to competition. Not hard but necessary.
Are you suggesting Congress, in order to get rid of the Fed, should make the over $18 trillion in commercial bank debt to account holders into US legal tender money effectively giving the banks a Debt Jubilee? Are you not aware that the "in-game token" US paper dollar is the actual US legal tender money the banks owe to their account holders? Are you suggesting that banks should be placed in charge of creating US money supply by generating deposits as loans? Are you suggesting that by removing one little piece, the Federal Reserve, out of a parasitic debt-based banking system that spans the entire globe is gonna fix everything?
I would only add that the Fed allows Congress to spend like drunken sailors, thus creating inflation.
The Fed should clean up the mess they made first, before abolishing it. Or else so much financial chaos will follow that the Fed will be begged to come back.
Www.Targetedjustice.com
Harmonize Economics with Creative Currency Octaves: BetterToBest.wixsite.com/book/post/harmonize-economics-with-creative-currency-octaves
🙏🏻 Great article, thank you! Yes, something needs to be done and hopefully the new administration will make this happen. Also, they need to make it illegal for banks to create new money when they create new loans.
A lot of people do not realize that when a bank creates a mortgage, they are creating new money out of thin air and then charge interest off that money. For the average working person they will have to work approximately 15 years of their life to pay interest to a bank who creates the money by typing a few keys on the keyboard.
If the banks are creating a lot of loans then inflation will shoot up. And on top of that if the FED is performing QE, buying the mortgages from the banks with new money they create out of thin air, it creates even more inflation, it's a double whammy.
I know banks perform functions that people want and need like safely holding their money and wire transfers and other services but are those services worth the cost of inflation, the cost of working 15 years more of your life to pay off a mortgage?
Banks used to be fractional reserve and they did not have to keep much, but in 2020 the reserve was set to zero. https://www.federalreserve.gov/monetarypolicy/reservereq.htm
Banks still need to adhere to the capital adequacy ratios but they have the person applying for a loan pay for that.
For example, a person gets a loan for $500,000 for a house. The banks creates the loan, which creates the $500,000 in new money out of thin air. The bank ask the person for 20% down and then the banks has to keep 7% of that to cover the capital adequacy ratios and then they can use the rest to cover the ratio on other loans they make where they do not ask for a down payment.
It is mind blowing that the banks are this entrenched and have been doing this for so long and 99.9% of the population have no idea how this works, they think that banks lend out the money they have saved.
How banks create money:
https://www.youtube.com/watch?v=Q-3MEQnLbAk
Great post.
I don't think the steps you listed are insurmountable at all - dependent on one key factor - overwhelming public support. That's where the battle, to get this done and maintained, will be.
Educating them is the problem, because they've been taught it's to complicated and then provided cheap and consuming distractions, to keep them from digging deeper, learning and asking questions. They're taught to keep themselves in the much simpler world of weekend sports, netflix, doordash, social media meme binges and celebrity whore-shipping. For instance, how many (not reading your SS) know that Rep Thomas Massey introduced the Federal Reserve Board Abolition Act, in May of this year and Sen. Mike Lee did the same in June??
The issue is, without constant and devastating pressure from the masses, will never get the votes to repeal the Fed. Just because it's a great idea, would benefit the people and is supported by the regime in power, doesn't mean the legislators will vote for it. We just saw this, in the choice of the Senate Majority Leader vote.
Unless the people are highly engaged and in the faces of their elected congressional members, it will never happen. And if it did, then they'd also need to be militantly active, against any congressional action to reverse or re-instate the fed, after Trump's next term. The bankers and financiers would push hard to get it reversed and spend billions in the effort.
Past all that, there is no time like the present, with a president that'd champion this.
100%
The greatest President Andrew Jackson did it once. We can do it again. Make Money Real Again.
This is a totally different America than the one President Jackson was in charge of. How exactly do you make the currency backed by gold again? Do you realize how many trillions of dollars are out there?
That's a good question and there are more like that but surely we can come up with something better.
#1. End the Fed. #2. Worry about everything else.
Yes, end the Fed. A quick check of history reveals that the Fed has mismanaged the economy, rather it has managed the economy to benefit the Bankers Cabal of Central banks, read, the ultra rich. The last four years has showed us the inability of the Fed (in collusion with the Deep State government) to properly manage the economy, which only needs a very little guidance if the free market is allowed to naturally function. The dollar (Federal Reserve Note, i.e., promissory note) is devalued and weak, and likely to collapse under $36 Trillion of government debt. The best hope is to free the dollar from the Fed and let it function as it should. Yes, kill the Fed.
We don't Need the Fed.
The Treasury Department,with some modifications, can do whatever the Federal Reserve claims to do. Can't back any system with gold,there is not enough gold to do this with in a modern Economy.
The BRIC"s use Baskets of commodities,on & in the land!
The Federal Reserve Act,...Amendment 16 Income Tax Law.
!according to the book "the law that never was'' never received enough positive votes to pass,but was pushed thru into law any way.Since 1913 the Federal Reserve has been a giant looting operation sucking the wealth out of the nation & giving that wealth to the Bankers & financiers who work the financial markets & banking!
There is another illegal part to this scam that is not financial.
The Federal Government in Washington has been warped from a limited mandate government with limited powers in the Constitution.It has been warped into giant,Unconstitutional Central Government with vast,but unauthorized Powers.
Before you can end the Fed, one of the most powerfully ugly forces on the planet, you must end government.
Can't end Government & back to nature,10,000 B.C.!
What they may be able to do is nationalize the Fed & make it a part of the Treasury Department.Then start removing the bad parts