What would happen if the Federal Reserve was wiped out in a war?

I was watching Zeitgeist Addendum when this question came up in my mind.

What would happen if the Federal Reserve was wiped out in a war?

Hmmmm, would that me "liberating" so to speak, after all ?

I don't understand what you're saying.

Elaborate.

i mean would that set a group of people in great dept free?
Would the few holding it all lose control and allow for a better and healthier welth balance?

I don't see how it would be wiped out in a war. The only possibility of it becoming eradicated is if the people of the US revolt against it somehow.
I believe once it's wiped out, the world would be a better place, and debt would never escalate or even exist at the level it is today.

reply to post by GEORGETHEGREEK


lots of people would probably be very very happy

they never should have been allowed to print our money being a privet company and all

why would we want to let someone print our money ,then turn around and charge us interest (income tax,SS) for loaning it to us

when we can print our own dam money and back it by real gold silver /other precious metals

no wonder the economy is crashing

Mayer Amschel Rothschild quote "Give me control of a nation's money and I care not who makes the laws"

IMAGINE that !!

the problem is that the information that you are referring to is all electronic, stored on multiple redundant servers in different hardened locations. It's not like the government keep a check book register or a stack of IOU's in a vault some where.... Even the gold in Kentucky is largely for show.

What you have to worry about in a war is the government pulling back and leaving you exposed to an enemy that does not know what a white flag means...nor do they care.

I agree that the fed needs to go and we need to issue our currency. The thing is that if you back it with precious metals then the price of metals will be manipulated to wither drive up or drive down the value of the curremcy. They could however fix the price of gold and make all gold holders to make a sacrifice to the country and tender their gold at a price they may not want to sell at. Still any system based on something as the price of gold, would still be at the mercy of the market heavyweights.

What we need is a currency that is pegged to a combination of our production of goods and tangible asset values of our complete infrastructure. Thus if we orint more money we need to have something to show for it. We would also have to have permentantly fixed interest rates. National bank would make slight adjustments to reserve requiremnents to keep the economy at the desired velocity. For instance the national bank lends to banks at 3%, the banks lend to consumers at 4,5,6,7% with credit history being the only determinant of which rate they get. Banks would be allowed to lend 5 times their reserves. When you want to tighten, you lower that to 4.9 times reserves and so on.

I personally think we need to first have the fed buy all outstanding goverment and consumer debt at par. Once the fed has it all, you close the fed and wipe the slate clean. You then print new dollars and allow allow fed dollars to be replaced 1 for 1. The entire value of our whole nation should be more than enough to provide sufficient new currency to replace everything in existence without really changing its value much.

reply to post by disgustedbyhumanity

so i guess one key aspect to a new system?

would be to find something tangiable that everyone wants that is the least manipulative .

what could we use as a global collateral???

Originally posted by irongunner
the problem is that the information that you are referring to is all electronic, stored on multiple redundant servers in different hardened locations. It's not like the government keep a check book register or a stack of IOU's in a vault some where.... Even the gold in Kentucky is largely for show.

What you have to worry about in a war is the government pulling back and leaving you exposed to an enemy that does not know what a white flag means...nor do they care.

war is war and both things are possible.

Originally posted by lycopersicum
reply to post by disgustedbyhumanity

 

so i guess one key aspect to a new system?

would be to find something tangiable that everyone wants that is the least manipulative .

what could we use as a global collateral???

very good question and i have a thread about it. However its not doing well due to the complexity of the matter..........

reply to post by disgustedbyhumanity

I personally think we need to first have the fed buy all outstanding goverment and consumer debt at par. Once the fed has it all, you close the fed and wipe the slate clean. You then print new dollars and allow allow fed dollars to be replaced 1 for 1. The entire value of our whole nation should be more than enough to provide sufficient new currency to replace everything in existence without really changing its value much.

There is a huge problem with your suggested "solution". Much of the debt of the US has been assumed by nations such as China, Japan and the OPEC nations. I doubt that they would go along with it. In fact, I know they would not. Once we became such a large player in the "Global Economy", we abrogated the ability of this country to do what you suggest. The Rubicon has been crossed, and it is too late now.

Good thought though!

Originally posted by ProfEmeritus
reply to post by disgustedbyhumanity

 

They would go along with it to be able to trade with a strong dollar. They would take a fraction of debt free dollars over their current holdings. Or they could let the dollar go down the tubes and get nothing for all their iou's. Don't forget they will be selling their debt to the fed and get fed notes which will be exchangable for new dollars. it would give them incentive to purchase more from us so that they could spend them. It wouldn't be easier but it would be workable.

I personally think we need to first have the fed buy all outstanding goverment and consumer debt at par. Once the fed has it all, you close the fed and wipe the slate clean. You then print new dollars and allow allow fed dollars to be replaced 1 for 1. The entire value of our whole nation should be more than enough to provide sufficient new currency to replace everything in existence without really changing its value much.

There is a huge problem with your suggested "solution". Much of the debt of the US has been assumed by nations such as China, Japan and the OPEC nations. I doubt that they would go along with it. In fact, I know they would not. Once we became such a large player in the "Global Economy", we abrogated the ability of this country to do what you suggest. The Rubicon has been crossed, and it is too late now.

Good thought though!

reply to post by disgustedbyhumanity

Don't forget they will be selling their debt to the fed and get fed notes which will be exchangable for new dollars. it would give them incentive to purchase more from us so that they could spend them.

That's true, but we have to start producing more products that they would purchase. Right now, the problem is that we shipped most of our production capabilities to them in the first place. It just seems like a catch-22.
Believe me, I understand your suggestion, and I thought about it for months, and yes, it is a good idea. I'm just not sure it can be pulled off. One thing is certain- it certainly can't be pulled off by the clowns we have in government now. They are all so corrupt that they don't listen to reason, just their corporate masters.