Posted on 05/01/2014 4:34:21 PM PDT by Toddsterpatriot
The treasury department is fully capable of printing bonds. You don’t need a central bank for that.
Precious metals ARE legal currency. The gold denominations on the back are in dollars.
Go ahead, drop that twenty dollar gold piece on the table at macdonalds next time you stop there for lunch.
AFAIK, they're all electronic entry now.
I was responding to the post that asked who would print them.
The Federal Debt in 1913, when the FED began, was less than 4% of GDP. It is now >100% counting direct treasury debt and intra-government debt holdings. It is far higher if you want to count indirect liabilities.
WWI began a period of politicized control of the Federal Reserve and it has only grown since. I will refer you to someone much more expert than me
http://bastiat.mises.org/2014/03/the-1914-1929-boom-was-an-artifact-of-war-and-central-banking/
That's awful. The government spends way too much. This will only get worse as the baby-boomers retire and our entitlements absorb a larger and larger chunk of GDP.
That is still not proof that eliminating the Fed ends progressivism. It's already been shown that a metallic standard doesn't stop the Fed from setting overnight rates.
I don't understand your obsession with the FED's ability to set short-term rates. The FED, as originally purposed, was meant to be a "banker's bank" - to provide short-term liquidity to banks by buying buying bank assets or providing capital in the case of panics and liquidity crisis. It did not have the political goals of setting inflation rates, maximizing employment or growing GDP. As the article points out, it quickly took on those big-government roles.
Simply responding to your claim that a metallic standard would somehow free interest rates.
The FED, as originally purposed, was meant to be a "banker's bank"
Yes.
It did not have the political goals of setting inflation rates, maximizing employment or growing GDP.
Not until their bosses in Congress made them.
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