Nightmare Scenario: The Fed Outlives the US Federal Government

ZeroHedge ^ | 10/02/2010 | mikla

[tired1]

Many assume that the Fed would not survive a dissolution of the US Federal Government. However, that is not true: The Fed will only dissolve when its intellectual property (e.g., the "dollar") no longer has value, and the Fed shareholders decide to liquidate assets. If people still want dollars, the Fed exists. Since the dollar is an unsecured claim on Fed assets, even if people do not want dollars, the Fed remains one of the largest real property owners in the United States (through its mortgage securities and stock market holdings).

[tired1]

You cant kill the un-dead.

[counterpunch]

Interesting.

[1rudeboy]

Yup, and one of them has eaten this author’s brain.

[Secret Agent Man]

They don’t own MY house.

[Huck]

Since the dollar is an unsecured claim on Fed assets

Try explaining this to the average dolt.

[SeeSharp]

It could perhaps survive as a corporation. But the Fed wouldn’t last a day as a bank, let alone a central bank, without the governments legal tender laws.

[wendy1946]

One of the founders of the Rothschild dynasty is supposed to have said something like “Give me the power to control a nation’s money system, and it doesn’t matter who writes or controls its laws...”

[tired1]

“Give me control of a nation’s money
and I care not who makes the laws.”

[Orange1998]

A govt somewhere has first dubs on it. It could never be paid off.

[mamelukesabre]

A simple switch to silver coins would end the fed. not too complicated.

[tired1]

I can see people implementing such solutions on a local scale in the iimediate future. In fact, I’ve been trying to figure ways to implement such practices.

[Agamemnon]

It could perhaps survive as a corporation.

It already is a private corporation and always has been since its founding.

Here's an idea: have Congress de-authorize the Fed, and pull its corporate charter, so that the shell entity, asset-less Fed whose US debt was all denominated in Federal Reserve Notes is stuck with the obligation to pay all the debt it then holds.

The US re-asserts its abrogated Constitutional power to coin money (silver) and regulate the value thereof backed by a basket of assets to include national (now also completely de-regulated in this scenario) oil wealth, et. al.

World bankers are on the hook for the phony value of all the phony fiat paper the Fed ever issued. Those assholes could charge themselves paper asset interests til the cows come home, or more likely the Fed just declares insolvency and folds.

America's backed dollar becomes the bed rock world reserve currency as fiat money around the globe collapses.

Sound like a plan?

Imagine the look on Soros and all the Rothschild remnant family bankers faces.

Andrew Jackson de-chartered the euro-controlled Bank of the United States in 1832. A recession happened in 1837, but we made it through that and dealt with Barbary pirates at the same time and the Mexicans shortly thereafter.

The euro bank houses tried to get their money back by financing the trade to support the South in the Civil War, split the Union and re-claim all then assets -- a divide and conquer strategy -- and they failed because Lincoln financed his end of the war with United States Notes, better known as "Lincoln Greenbacks."

History can repeat, and indebtedness to this current cabal who trade on margins and practice theivery-through-currency-debasement. Perpetual indebtedness need not be our gandchildrens' fate.

And the President brave enough to stand up to them, like Lincoln (or even Kennedy who wanted to declaw the Fed -- and I am no Kennedy fan either), may take a bullet for it too.

FReegards!

[SatinDoll]

Do you know how much those coins are worth in today’s silver valuation?

A thousand dollars ($1000.00) face value worth of American silver coinage costs thirteen thousand dollars ($13,000.00) today when purchased as junk silver!

[Secret Agent Man]

Nopw. No loans on it.

[ml/nj]

Since the dollar is an unsecured claim on Fed assets

The "dollar" isn't a claim on anything. This article is wrong. (And it's not a dollar either.)

ML/NJ (in Jerusalem)

[The Duke]

Many assume that the Fed would not survive a dissolution of the US Federal Government. However, that is not true: The Fed will only dissolve when its intellectual property (e.g., the "dollar") no longer has value,...

The Federal Government itself will exist until the dollar loses all value, so it and the Fed are lashed to the same mast.

[wendy1946]

The US re-asserts its abrogated Constitutional power to coin money (silver) and regulate the value thereof backed by a basket of assets to include national (now also completely de-regulated in this scenario) oil wealth, et. al.

Government at some level ought to be creating ALL of the money in use and not just metal coins.

For the last hundred years we've all been paying interest on money which banks create out of thin air and loan into circulation. Governments could as easily create money them self and no interest would be due. The biggest problem which US governments have had in the past with fiat money was the British counterfeiting it and in todays age when 97% of all money exists as computer entries, that would be a lot harder.

[Toddsterpatriot]

For the last hundred years we've all been paying interest on money which banks create out of thin air and loan into circulation.

Banks don't create money out of thin air. Every loan is fully funded. Deposits are larger than loans.

Governments could as easily create money them self and no interest would be due.

Is interest due on the $20s in your wallet? Who do you pay? How much?

[wendy1946]

Don’t you ever get tired of exposing yourself as an idiot?

[mamelukesabre]

What I don’t understand is why you think you made any kind of point whatsoever.