Old Project Avalon Forum (ARCHIVE) - View Single Post - What would/should/could we have in replacement of the Federal Reserve?

Irving · 10-02-2008, 10:53 PM

I think that we are all very well aware of how important the Federal Reserve is and how its creation has to do with powerful moneyed interests reclaiming control of America through manipulation of our credit.

These are two simple thoughts that I always bring up with those who are unaware of the illegitimacy of the Fed:

1. What country in its right mind would charge itself interest on its own money when it could create the money itself interest-free? The constitution clearly states that only congress has the authority to coin money. Instead, congress have outsourced that job to the private Fed corporation. The Fed charges us taxpayers interest on the entire 10 trillion dollar national debt. Does this strike you as strange? Why doesn't congress simply have something very similar to the fed that does not charge interest? (I usually also suggest that the answer to this question will lead one very far down the rabbit hole of that dreaded word "conspiracy".)

2. Where is the money EVER going to come from to pay the interest on our national debt and/or all private loans? There is simply never enough money ever in circulation to repay principle plus interest. The entire fed created money pool that is in circulation is substantially smaller than the final principle plus interest which must theoretically be paid back to the Fed. This literally means that our national debt can never be repaid. It is not possible. Let's look at a very overly simple example to prove my point: If a central bank loans out 1 dollar at 10% interest - and this is the only loan that it ever makes - how will you ever repay the 1 dollar at 10% interest? Where would the money come from to pay that 10% if the original 1 dollar is the only money in existence? It cannot come from anywhere, and you are permanently in debt.

Consequently, our country's population, and most other countries around the world as well, are enslaved by the world bank and central banks through debt which can never be fully repaid because of our inherently faulty fractional reserve banking and fiat money systems.

For anyone who has not seen it, this animated video is a great introduction to our system of fiat money and fractional reserve banking:
http://video.google.com/videoplay?do...74362583451279

So this leads me to the point of this post, and something that I rarely hear being discussed. I hear plenty of criticism of the Fed, but what could we have instead of the Fed? What would the perfect money creating system be in a true free market and free society? Any thoughts?

10-02-2008, 10:53 PM	#1
Irving Avalon Senior Member Join Date: Sep 2008 Posts: 71	What would/should/could we have in replacement of the Federal Reserve? I think that we are all very well aware of how important the Federal Reserve is and how its creation has to do with powerful moneyed interests reclaiming control of America through manipulation of our credit. These are two simple thoughts that I always bring up with those who are unaware of the illegitimacy of the Fed: 1. What country in its right mind would charge itself interest on its own money when it could create the money itself interest-free? The constitution clearly states that only congress has the authority to coin money. Instead, congress have outsourced that job to the private Fed corporation. The Fed charges us taxpayers interest on the entire 10 trillion dollar national debt. Does this strike you as strange? Why doesn't congress simply have something very similar to the fed that does not charge interest? (I usually also suggest that the answer to this question will lead one very far down the rabbit hole of that dreaded word "conspiracy".) 2. Where is the money EVER going to come from to pay the interest on our national debt and/or all private loans? There is simply never enough money ever in circulation to repay principle plus interest. The entire fed created money pool that is in circulation is substantially smaller than the final principle plus interest which must theoretically be paid back to the Fed. This literally means that our national debt can never be repaid. It is not possible. Let's look at a very overly simple example to prove my point: If a central bank loans out 1 dollar at 10% interest - and this is the only loan that it ever makes - how will you ever repay the 1 dollar at 10% interest? Where would the money come from to pay that 10% if the original 1 dollar is the only money in existence? It cannot come from anywhere, and you are permanently in debt. Consequently, our country's population, and most other countries around the world as well, are enslaved by the world bank and central banks through debt which can never be fully repaid because of our inherently faulty fractional reserve banking and fiat money systems. For anyone who has not seen it, this animated video is a great introduction to our system of fiat money and fractional reserve banking: http://video.google.com/videoplay?do...74362583451279 So this leads me to the point of this post, and something that I rarely hear being discussed. I hear plenty of criticism of the Fed, but what could we have instead of the Fed? What would the perfect money creating system be in a true free market and free society? Any thoughts? Last edited by Irving; 10-02-2008 at 11:09 PM.