What if we did end the fed

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Thetallestmanonearth's picture
Thetallestmanonearth
Status: Gold Member (Offline)
Joined: Feb 28 2013
Posts: 320
What if we did end the fed

As I'm sure most of you know I'm not the most financially literate person on this site, but I try to keep up.  I get a lot of my news from zero hedge and it seems like in the comments section there is always someone calling to "end the fed".  Ron Paul makes public calls for it on a regular basis.  I buy the premise that the Fed causes more harm then good, but I'm curious how it would all play out. 

Say we wake up tomorrow to see a little inflation start to show through the thin garments of this mock economy.  The public gets antsy and Putin plays his cards right to prevent Washington from projecting these problems on Russia and leading us into war to cover their tracks.  The cries start to get some mainstream attention and a few congressional candidates take advantage of the populist movement that is percolating beneath them.  By this time next year it's clear that the economy has in fact been rigged to the benefit of the few and "end the fed" reaches a fever pitch. (Still no war, terrorist attacks -real or false flag- or Ebola outbreaks to distract the public).  How would one dismantle the Fed? What would the consequences be? What should be used to replace them?  How would the world react?

Writing this now it's become clear to me that no one in power today will wait around to find out.  That is why the drums of war are getting louder around us, but what if we could somehow prevent that outcome and force them to face the consequences of mismanagement?

Time2help's picture
Time2help
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Joined: Jun 9 2011
Posts: 2766
Implosion(?)
Thetallestmanonearth wrote:

How would one dismantle the Fed? What would the consequences be? What should be used to replace them?  How would the world react?

Perhaps the Fed is in the process of ending itself (either by circumstance or design). History suggests that these things burn themselves out in the end. Question of timing is my guess. Still working that committee angle, by the way ;-).

 

 

Thetallestmanonearth's picture
Thetallestmanonearth
Status: Gold Member (Offline)
Joined: Feb 28 2013
Posts: 320
Perhaps the Fed is in the

Perhaps the Fed is in the process of ending itself

I suspect you're right, but how does that all play out (in the absence of a war that allows the people in power to rewrite the rules with a few broad strokes)? 

It takes time to get anything past a committee.  Believe me, I understand!

james_knight_chaucer's picture
james_knight_chaucer
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Posts: 160
Didn't I read some years ago

Didn't I read some years ago that the Fed could be nationalised by congress compulsorily purchasing all the shares for the original 1913 price?

Thetallestmanonearth's picture
Thetallestmanonearth
Status: Gold Member (Offline)
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Posts: 320
Didn't I read some years ago

Didn't I read some years ago that the Fed could be nationalised by congress compulsorily purchasing all the shares for the original 1913 price?

I'd be real interested in learning more about that if you can find a reference.

Time2help's picture
Time2help
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Fed(eralization)
james_knight_chaucer wrote:

Didn't I read some years ago that the Fed could be nationalised by congress compulsorily purchasing all the shares for the original 1913 price?

Any thoughts on what that would accomplish?

james_knight_chaucer's picture
james_knight_chaucer
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Posts: 160
Oh, well sadly not much, as

Oh, well sadly not much, as our central bank here in the UK was nationalised back in 1946. The only difference would be that rather than dividends going to private shareholders, they instead go to the government.

james_knight_chaucer's picture
james_knight_chaucer
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Posts: 160
Thetallestmanonearth
Thetallestmanonearth wrote:

Didn't I read some years ago that the Fed could be nationalised by congress compulsorily purchasing all the shares for the original 1913 price?

I'd be real interested in learning more about that if you can find a reference.

I just found this: http://www.moneymaker.com/money/frbsol1a.htm

Look about halfway down under 'The Solution'.

I'm afraid I don't know how to search congressional records to confirm if the references are correct, but I'd also be interested if anyone does find them.

Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2766
What happens if the Fed were to end (at this point)?

sana5500's picture
sana5500
Status: Member (Offline)
Joined: Sep 15 2014
Posts: 6
Itwill be the high loss for

Itwill be the high loss for you.

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