So what happens if the central bank is not repayed?

What to do if a central bank is not repayed? Will they ask justic and police to confiscate country X as collateral?

I think they will privatize.

Originally posted by Cassius666
What to do if a central bank is not repayed? Will they ask justic and police to confiscate country X as collateral?

They find you, come to your house, wait until you're asleep, and then take it out of your ass.

They fund a country to take over your country.

For instance, if America stopped paying the central bank, the central bank would stop printing dollars.

Then all countries with a central bank would stop tying their currency and oil to the dollar, rendering the dollar useless in the global economy - destroying America.

America would then print its own debt-free money, but soon countries will make war with America, and the victor will be the one with the most money and troops.

reply to post by Cassius666


Well actually if you look at the debt trends of countries, in order for a Central Bank to be "repaid" there would have to be negative debt growth.. follow me..

We borrow $1 .. then $2 .. then $4.. then $8 .. then $16 .. when we repay $1, it gets rolled into $2, when we repay $2 it gets rolled into $4 .. this way the country maintains funding and inflation is kept in check than if we were to say, borrow full cost with non existent debt than debt that already exist.

In order to actually repay we would have to see 1, 2, 4, 8, 4, etc .. you have to see a decline in debt, which in Western Keynesian economies is almost impossible to do.. we've only ever done it once, under Clinton, and even then we maintained Tbill funding of the government.

In Western central banks interest is usually destroyed and or rolled into Treasuries (I am unsure about the EU though) the Reserve not being an actual bank doesn't profit from the debt, though through the monetary manipulation it's member banks do .. an indirect profiting.

reply to post by againuntodust


The Federal Reserve does not "print" Dollars, it buys us debts with imaginary money, yes, but only Congress actually runs the Mints, and Congress holds the Charter to the Reserve.

So the Central Bank basically owns America? I don't know much about this subject.

reply to post by PoorFool


The Federal Reserve cannot "own" anything, let alone a country. It holds the most debt, which is a circulating debt that funds the Government. Congress owns the Reserve, as it holds it's Charter. The real issue is that while Congress controls the Reserve, it fails to actually supervise it, and it acts of it's own accord, unless specifically told to pump money into the Treasury Notes ie, their latest $600b ramp up of Tbills.

The largest actual corporate ownership of US Debt is by Insurance Companies, not Banks.

I guess there may be a reasonable argument that it is tax for not paying the central bank. The IRS is also privatised so they might kick up a stink and will have to be cut out of the loop. This will flow onto less in the central bank kitty to pass onto wall street and where ever else it goes. The Fed may respond by just printing more money and increasing inflation even further.

The best approach out of this mess is to take both the fed and IRS back into government hands. This will stop the interest problem and provide much more oversight to where things go. Also do not need to worry about all the mess in collapsing and rebuilding a currency as some have suggested.

Nothing, because when the collapse does occur any money owed to them would be effectively erased off our books once and for all legally decreeing us free from that debt.

It's like if you owe some douchbag some money and you hear one day that dude dies, your debt dies with him.