Time to eliminate the Fed?

Discussion in 'Economy' started by Wry Catcher, May 28, 2010.

  1. Wry Catcher
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    Wry Catcher Platinum Member

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  2. Baruch Menachem
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    Baruch Menachem '

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    The Fed is a thankless job that no one can do well that has to get done, but preferably not so badly as has been the case over the years. It was supposed to prevent bank failure lead depressions, yet the it seems that during its first big crises in 1929 it precipitated the crises and drove it harder by deliberately smashing banks. During the 1970s it was supposed to work with the treasury for full employment, and unemployment has never been worse. You give it a job, it botches the job. No banking crises prior to 1912 seems remotely as bad as the criseses after the fed.

    As for 2, it is bad enough trying to cash an out of area check. It would create chaos here in Portland as we are so integrated with SW washington. There are lots of cities in the US where the big city is on the border with another state. NYC borders three states, I think. Cincinnatiti would have grief, as would DC, Chicago which is close to both IN and WI. St Louis. for another. Kansas City.

    The census has a statistical tool call the SMSA. It is an area of three counties or more where the population in the combined counties is greater than 1,000,000 and the counties are integrated economically. Make a rule of no more than 5 SMSAs. Makes banks big enough to be useful, not too big to fail. From a free market standpoint, I don't like it, but I don't like disasters like TARP either. It seems a place to rise above principle.

    Any time any government agency runs any economic enterprise, the enterprise will be run to enrich the politicians in power at the expense of the people of the government.
     
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  3. Neubarth
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    Neubarth At the Ballpark July 30th

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    Only an insane lunatic would postulate the nonsense that you have above. The FED is the only thing that is keeping the United States running.

    In the future, the FED will provide the money for Social Security payments. Those retiring people need their monthly payment to keep from starving.

    After that, we can ask the FED to forgive thirty Trillion of debt that they bought to finance SS. Guess what, They will do it! As I keep on telling you idiots on this board, the FED is the greatest thing that we ever thought of.
     
  4. Wry Catcher
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    Wry Catcher Platinum Member

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    Good post, I hope others choose to discuss the issue. Did you know of the BND before I posted this thread?
     
  5. georgephillip
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    georgephillip Gold Member Supporting Member

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    Currently eight states are considering following in North Dakota's lead.

    A PhD Economist running in Florida's Democratic gubernatorial primary has claimed the billions of dollars in interest charges a state bank would save its citizens (think mortgages at 2% and credit cards capped at 6%) and the billion$ more the bank would generate helping its citizens save could eventually reduce and eliminate state and local taxes.

    With Wall Street making new friends with each passing bonus pool, this might be a once in a lifetime opportunity to exterminate private debt and the central bankers that profit from usury and eternal wars.
     
  6. Kevin_Kennedy
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    Kevin_Kennedy Defend Liberty

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    I like #1, but I see no reason why banks should have to be restricted to only one state or why they should have to be modeled after the Bank of North Dakota.
     
  7. Wry Catcher
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    Wry Catcher Platinum Member

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    Banks were restricted to operation in one state only until recent years, and the BND does not have a monopoly, other private banks and savings and loans operate within the state.
     
  8. Kevin_Kennedy
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    Kevin_Kennedy Defend Liberty

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    Well in a free market there's no reason why a bank would have to stay within one state only, and there'd be no monopoly.
     
  9. Wry Catcher
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    Wry Catcher Platinum Member

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    I disagree. There can be a 'free' market with rules, and, local control is always better, isn't it?
     
  10. Kevin_Kennedy
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    Kevin_Kennedy Defend Liberty

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    No. Government is inept whether it's federal, state, or local. The free market would make it a 100% reserve requirement, because anything less would be fraud, so there'd be no need for government rules.
     

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