posted on Jan, 12 2011 @ 10:50 PM
I feel like I may have stumbled upon a stroke of genius on how to avert the impending disaster, but it could just be a misunderstanding of how the Fed
So first off, I have a couple of questions about the Federal Reserve. If you choose to answer please let me know how confident you are in your
answer. In other words are you someone who studies this stuff or are you speculating? Either type of answer is welcome but I would like to know the
degree of confidence.
So here goes.
The first question is, do I have the correct understanding of the Federal Reserve problem? Basically, it works like this. They print all money
circulating in the United States. However, they only print money when asked to, and then they only do it via loans at interest. So, hypothetically,
if the government needed 10 bucks, the Fed would print 10 bucks, but then the government at some later date would need to pay them back, say, 12
bucks. Of course there is not 12 bucks, only 10 bucks, because that's all that was printed. So the debt can never be repaid; it is mathematically
impossible from the get-go. The amount of money owed to the Federal Reserve is always greater than the total amount of money in circulation and this
difference only gets bigger with time. And of course it goes without saying that the system is obviously designed this way (read: a conspiracy)
because there is no way somebody would be stupid enough to design in good faith a system this ridiculous.
So my first question is, is my understanding of the Fed as expressed in the above paragraph correct?
If not, we might not need to go any further. Assuming it is correct or close to correct, I will continue.
My second question: What percentage of the US national debt is owed to the Federal Reserve? Is it most of it?
If both of the above are true, then the answer to the problem facing our country, a solution that does not necessarily have to involve total collapse
of everything, is one word: balls.
In more than one word, the federal government needs to do the following:
1.) Declare a new currency (for now I'll call it dollar2) and declare the Federal Reserve dollar to be null and void.
2.) Provide a time frame, perhaps one year, during which people may exchange dollars for dollar2s. For each dollar given to the government, the
government prints a dollar2 and gives it back. The dollar is then burned (or deleted, as the case may be). After this time frame dollars can no
longer be exchanged and are thereafter worthless.
3.) Dissolve the Fed. Send them packing. Tell them not to let the door hit them on the way out.
There you have it. Prevent the impending currency crisis and eliminate most of the national debt in one fell swoop. We can then proceed to restore
(Of course, in my opinion this would only be the first step. Next would be tying this currency to gold, and finally relinquishing fiat money
altogether and returning to free banking. But for now I'd be happy just to be rid of the Fed.)