- Thread starter
- #21
He said the Fed isn't Federal and has no reserves.
Of course it's Federal, it was created by Congress and signed into law by the President.
As far as reserves, they hold $1.6 trillion in Treasuries, $940 billion in insured MBS and almost $450 billion in gold. I could go on, but do I really have to?
The Fed is not owned by the government. Congress doesn't control it. Nor can it audit its books. It is a banking cartel that is disguised as part of the federal government.
The Fed creates money from nothing then leans it out with interest. Thus, every dollar has debt associated with it.
If Bill has his way....the Treasury department would create the money then spend it into the market....debt free.
As far as the 100% reserves....In order to get the new Treasury money in circulation ... You would slowing supply the banks with cash and lower the fractal reserve amount until they have 100% reserve.
As far as the 100% reserves....
You never answered, why is 100% reserves better? And how would you borrow?
Banks will need to earn money to loan it out. Interest rate will need to raise a lot for that to happen.
It would insure better qualified creditors and would stop banks from creating money from nothing.