I have something to say about currency, page 1

So yeah...

Sir Isaac Newton
The British Gold Guinea
twenty plus years later the
British go onto a paper currency.

Newton issues a standardized gold coin that turns out to be a little over valued compared to silver. Of course the merchants paid all overseas bills with silver but tried to only accept gold for their goods. As a result silver flowed out of the country. Eventually a famine of silver coins developed.

The British went on a paper currency. The problem is that no government can figure out the market faster than the market itself. Currency speculators work across boarders. What is needed is a small group of financial types who's sole job is to value the currency. But this group would have to be completely immune to political pressure or influence.

Later when thirteen little colonies are forming their own government they too encounter the same problem. Currency goes through fluctuations and variations so intense that the entire history of America, up until the founding of the fed, can be called the "era of currency wars." With the post Civil War era being particularly nasty with the Confederate bills being equal to Counterfeit, or a high crime with prison time.

What was needed was an independent body, contracted by congress, to be the impartial referee and bring some sanity to currency valuation so that business wouldn't be randomly bankrupted by two Governors having an argument. Needless to say the State Banks didn't like any of this, and the consolidation of Fed power was not pretty because their was so much entrenched resistance.

What the Federal Reserve is doing, is charging interest on the money the government uses, so congress doesn't go crazy and just start throwing money around.

[heckled from the audience]

What do I think congress is doing now?

Well, they are borrowing tons of money from the fed at record low interest rates. Why isn't the fed raising rates to slow this down? Well... here comes the bad news. This is the point where we have to tell America they dropped the ball.

Why is all that money sitting in banks unloaned. Have you noticed we don't hear any stories about people with real ideas, and collateral, who can't get loans to start a new business. I feel that the Fed projected that the number of small businesses would grow proportionally with the population. But it has not. And it's not because of local legislation, as atrocious as that may be to starting a business, it's because this generation has no drive.

Look, the Federal Reserve was loaning money to the government at almost zero percent a while back. And no one was taking the money. Obama has been practically begging America to start businesses. I haven't even heard of one cookie shop opening up.

So here we are America. Ignore TV, and help the sitting president he may very well destroy the bankers, and set up something new. Or start a business. But belive me, it's as real as stacking one brick on another, do anything in between and this place is going to implode.