A way to discontinue the Federal Reserve- a radical way

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krogoth's picture
krogoth
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A way to discontinue the Federal Reserve- a radical way

I have been thinking and studying a lot about the Federal Reserve over the past 4 years when I have time. In my opinion, it is not only a travesty that this is a private corporation, with private shareholders (bank executives mostly) but the fact that they are secretive and not able to be audited by an outside private or government source is truly unbelievable. It's also quite scary that any president who has disagreed with a central bank system has usually been assassinated. Some of the ideas I had to break this master of banks is to simply withdrawal all your money from your bank accounts. Yes I know this would cause a bank run, and a lot more banks would fail, but if the government was to set up it's own banking system, where they print the money, simotainiously with a nationwide system in place, then we would have a place for everyone to put money. I was talking to some friends about this, and they brought up some interesting points.

(1) Interest- Why would people put money into a government bank if it didn't pay interest?

I mentioned the fact that more than likely a government operated bank would probably not charge interest for loans, but you would also not get interest for deposits. So the only thing on this subject is your money being safe in the bank.

(2) Would United States banks, The Treasury and the Federal Reserve allow this to happen?

They would fight it with every ounce of power they have. BUT, we hold the power and not too many people know we do. It's called  the fractional reserve system, and it's one of the Achilles heels of the banking systems worldwide. Meaning if multiple people were to withdrawal, in cash, all of the money in the account and do it on a certain scale, the banks would simply collapse because they only have a fraction of the money on hand. It's FDIC law that if they cannot cover the money wanting to be taken out, the bank is seized. The rest is out in debt multiple times over and over, and that's not money. The FDIC would not be able to shore up all the lost money, so this would need to be done just enough to rattle the bank and the FDIC. Of course we would have the option of putting our money directly into the new United States government bank and the private Federal Reserve gets eroded. The United States government bank would be creating the same money through the mint. Not everyone would want to do this out of fear based on home loans with a bank or car loans, etc. But if enough were to do it, it could really shake up the system. Remember, your home loan wont go away, it will just be sold if your bank fails. The same with cars and every other kind of loan. Then you have the new interest free True Government bank take over your loan. You could more than likely just transfer everything to the new bank once it's established. All capital, loans etc.

(3) Won't a ton of people be out of jobs?

No, just the wealthy executive robbers and corrupt government officals at the top would be out of jobs. This would be a huge nationwide singular bank and require almost all of the employees who lost jobs to work in these new banks. The bank would be run by government officals and employees from all the other banks, with open books for the public to see everything going on at anytime. An open bank system for all Americans to examine what is happening with our money.

(4) How would the True Government bank system make money off of us if they don't charge interest for loans?

They already do it in taxes- And the government would save a unbelievable amount of taxes doing this kind of system because they are no longer paying extremely large amounts of interest to the Federal Reserve for loaning the government money as it is now. So our taxes actually may go down substantially. The downside is that we would not make interest off the new bank like we do the existing banking system, so we would need to turn to investments or whatever to make our cash grow. All investment accounts would be under this new bank as well.

 

My freinds and I had other questions, but I want to see how members here respond to this first. This is quite radical, but it frees us from a debt based system and the fractional reserve system completly. What the government has in the government bank is what they can loan. And they would have all your money for every American whenever they wanted to get it.

 

 I am very interested in comments or suggestions on this from the incredibly smart members of this website.

 

 

rlee's picture
rlee
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People are the downfall to this one

Again Krogoth, I find myself in full agreement with the plan.  Unfortunately there are those foolish mindsets that exist preventing its fulfillment.  As we had all discussed in other forums, the educational system has done a very effective job of under-educating.  Have you noticed that government (the Constitution), civics, ethics, rights, are NOT taught anymore?  If they are, the subject is brought up briefly or at an age that doesn't lend itself to any meaningful dialog - like elementary or middle school.  This leaves a group of very easily manipulated individuals who will take whatever the government and the media tell them as gospel, and smile all the way thinking they are being taken care of.  Footnote here:  The government and the media are run by the same people!  So, the issue goes back to education, or the lack thereof.

The other problem that comes to mind is this:  Back in 'the day' people had a savings account.  Money wasn't at the levels of growth that it's at today, and the exponential climb in credit isn't anything in line with the actual amount of dollars that are out there.  Also, the biggest deposit holders aren't the rank and file anymore, it's the corporations - and they're not getting the accountants to stuff anything in the mattress.  The system will fail, but due to the massive size of the institutions in charge, and the magnitude of what a global collapse would mean to the world markets, the efforts by the world bank and its partners may never be realized by any of us.

What would start a real revolution is this:  Get the Crash Course, Money Masters, Zeitgeist (actually Addendum addresses the bank and money system directly) into the hands of the world's universities.  Start the process with a generation that hasn't been fully indoctrinated into the false idea that the electorate is looking out for them.

There is still hope.

P.S.  I don't have to take any of my money out of the bank - there's nothing left after bills and taxes to save!

Bob 

Ray Hewitt's picture
Ray Hewitt
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Abolish the Federal Reserve

Central banking and fractional reserve got its start with the Bank of England in 1694. The bank issued notes backed by the king - William at that time. After the William had taxed his subjects to the limit, the Bank of England provided the revenue that financed his war with Spain. Central banking was instrumental in England's rise as the dominant power during the Victorian Age. As England and the pound sterling were in decline, the mantle of central banking passed to the US in 1913. Up to that time, money was supplied by private banks until the Federal Reserve squeezed them out. There were two prior attempts, I believe, at central banking, but both failed. The last was killed by Andrew Jackson, the last president to pay off the debt.

Three points to make here: 1. Central banking is relatively new to economic history. 2. Central banking is the financial keystone to government power. 3. Central banking is detrimental to a viable market economy. It distorts market prices, causing the boom and bust cycles attribued to capitalism.

There were times when banking was divided into savings-only banks and loan-only banks. The current fractional reserve system allows banks to literally embezzle your savings and loan them out to third parties. This subject is not easily grasped on this format. For the seriously interested, I can recommend some books that are long but extremely well written.

For banking history, Money, Bank Credit and Economic Cycles:

http://www.amazon.com/Money-Bank-Credit-Economic-Cycles/dp/0945466390/ref=pd_bbs_sr_1?ie=UTF8&s=books&qid=1223219067&sr=8-1

For the Federal Reserve, The Creature from Jekyll Island:

http://www.amazon.com/CREATURE-JEKYLL-ISLAND-Federal-Reserve/dp/B00181HBR0/ref=sr_1_1?ie=UTF8&s=books&qid=1223221544&sr=1-1

The Mystery of Banking can be read online and is a good place to start:

http://www.mises.org/Books/mysteryofbanking.pdf

No government is going to give up central banking until they are forced to. I won't even attempt to guess what that force is. 

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joe2baba
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federal reserve educaton

it is all about education 95% of the people in this country have no idea what the federal reserve is. it will take massive amounts of education. that  is my current goal in life  i suggest a dedfed website and an intensive effort to get the word out it does not have to be everyone just a critical mass. after all the revolution wasnt all that popular.

this site might be a ggod place to start to organize share ideas and get the word out THEY will  not be happy if it gets around ihave been writing emails to lou dobbs glenn beck etc. they are talking about the recent issues but dont have a clue of the root causes.

as i have told youbefore i am there with you.

krogoth's picture
krogoth
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I wonder about the impact of
I wonder about the impact of people not able to save any money, getting foreclosed on and not being able to pay taxes or even work. I wonder if that is going to be a large number of people and what it will do to the economy.
krogoth's picture
krogoth
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I agree

I agree,

 

If I talk to people outside my close friends, who are investors or business owners, they know 0 about economics, the governments role in it, the banking system ripoff, etc. And with my close friends, only 2 out of 8 knew the Federal Reserve was a privately owned corporation.

krogoth's picture
krogoth
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A bill to force monetary policy education for schools

Well this is a long-shot,

 

But teaching teens at a younger age what really goes on with money is extremely unpopular but needed. Unpopular because teens really don't know or care about this subject. It is vital that we educate our youth in what goes on in this country. They will be the benefactors of all that is going on now, and they should know the truth.

krogoth's picture
krogoth
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I agree Bob
The fact that a lot of these subjects are not even taught, and monetary policy is not even looked at, shows you where our government is taking us. A stupid, scared and misinformed society is an easily controlled one, and that's where we are going. It's already showing up in the generations behind mine. Teens are typically lazy, have no ambition and tend to spend large amounts of time doing nothing productive. What is the cause of this? Primarily education I think. I don't blame the teens, I blame the government. Also it was amazing to see as out government voted to pass this 700 billion bailout just how uneducated our government is on even simple economics. Amazing should not be the word. Scary is better.
krogoth's picture
krogoth
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The roots of this go back to England
Good post, and I agree that the roots of this go all the way back to England 300 years ago.
krogoth's picture
krogoth
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If you start a website
If you start a website dealing with these issues, keep them as simple as possible because the majority of people I talk to about these issues, young and old, look like a deer in headlights. My mother is fascinated by history and politics, but if I talk with her about economics, I am generally dealing with yawns and her not understanding much of it. Sometimes she is so TVwashed by the news, she even says "that cant be true" to me. Unbelievable! People in America have a false sense of security and trust in the government that is low now, but it is still there. I look at it this way. We are all dogs running around the table, while the people sitting at the table (Banking, Federal Reserve, etc.) eating steak sometimes throw us a scrap to keep us from barking. It's happening right now with oil. Bring the oil down to misdirect the peoples thoughts away from the bailout bill, etc. It is like misdirection that a magician does. Do one thing to keep your mind off of what is really going on. They do the same thing with education in America. Most people get educated by the news, if they watch the news. You control that and you control the grey education in the country. I always tell my wife and friends to follow the money. Where the money goes is where the truth is. Plant the seeds now for our future with education.
EndGamePlayer's picture
EndGamePlayer
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Going Green - Go Local

I hate to sound like a broken record, but I see several things as serious threats to the central present banking system now. Going Green is one and here's why:

When people "buy local" and into "alt forms of energy" and alt or public transportation - they (centralized players) are loosing some of the control of food systems, energy costs and demand (they do much to control the demand so they can control the supply) and have played a major part in holding back alt forms of transportation. The internet is a threat since many people can communicate, educate and work from home - less travel for us bunny slipper work forces.

I see companies that want to buy the air waves and make WiFi free everywhere becoming a big threat to controlling masses. Billions of dollars have been spent on the infrastructure for making money on internet access, television and phones (land & cell) - all gone if they are provided for free courtisy of the paid advertizing you'd be forced to watch.

They have been trying to control food sources and records via gene modifications, animal ID'ing. It's not legal any more to even butcher your own food on a farm where you grew it. 

Ditto goes for local banking in "mom & pop" type banks. If all else fails - do micro-loaning by setting up your own system (you'd make A LOT of money Right NOW just showing people HOW to Do it NOW when they don't trust banks!

Credit unions may also be an alt place to bank. And buying stocks - buy local company stocks who actually MAKE something you approve of.

The point is - DE-Centralizing everything to the local level as much as possible NOW when people can justify it is the safest thing to do with their money IS motivating and a step to keeping others from controlling everything for their good and not the general population. 

Expecting the "education of others" is going to motivate them to act in a way that has no benefit to them is one thing. To actually have a workable plan now when people are scarred and show them a plan to benefit is another.

All I'm hearing now is the same 'ole song and dance from the "experts" : "hang in there, stocks are down - this is the time to buy", "don't panic", "don't run for cash from your bank". People need a new plan and they need and want one now.

rlee's picture
rlee
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A quote of the day

"Education is dangerous.  Educated people are your enemy"!

- Hermann Goering 

I find myself using many quotes from the past of late, and a good number of them by rather dangerous people.  But consider that I work in a profession surrounded by very dangerous people and the adage "to catch a thief, you need to think like a thief" is a true statement.  I'm not a thief mind you, but UNDERSTANDING the thief is paramount to catching the thief.  It is extremely important for us to study the mindset of our opposing views in order to effectively campaign against them.

 

NEVER STOP LEARNING!

Bob 

SwedishChef's picture
SwedishChef
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Additional Resourse

I will add http://www.webofdebt.com as a resource.  This explains the entire history of the banking system.

 @krogoth

 Allow the government to charge intrest on loans and pay some intrest.  This intrest could then be used to pay for government.  No more taxation.

 

 

babylon's picture
babylon
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Re: Additional Resourse

Just a thought to SwedishChefs comment re government charged interest.

Assuming that these envisaged government banks base the currency against gold or similar;

This would surely have the long term effect of currency inflation.Admitidly not quite as exponentially fast as the current fractional reserve system.

If they were to deduct a % tax from your account instead there would be no inflation.
SwedishChef's picture
SwedishChef
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Re: Additional Resourse

@babylon

 As long as supply = demand currency inflation would be OK.  The issue of today is we have over inflated supply and demand has not kept up.  We have been given the illusion that the 2 are equal, but in reality the 2 are very far apart.  The credit expansion has given us a false demand, a person did not actually work to get stuff.

 I am not advocating that we still have the reckless abandonment of credit expansion.  The Nationalized banking system would still need to place limits on who gets loans.

 At the very least the interest  can return back to the community as govt. funded projects (i.e. bridges that need repaired, roads, etc. etc.)

 We, as a society, need to get back to the axiom of "Need what you want, and want what you need".  

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JoeNemeth
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Re: A way to discontinue the Federal Reserve- a radical way

I tend toward localization and diversity. What it gives you is flexibility at the expense of security. I think that's what is important now.

The reason you see diversity in nature is because it works in the long haul in an environment that changes. Some species don't make it - others do very well. As a whole, the earth remains inhabited.

Right now, the economic environment is changing. There is no one obvious "right answer" that is going to fix everything, and if we have a monoculture (central bank) in which everything is invested, then if it the economic environment zags instead of zigs, the whole system goes down. If we are decentralized, every zig or zag is going to take out something, but something else will be thriving.

It's no different from diversifying your holdings in the stock market. You put everything into GM, GM goes under, you lose everything. You spread your holdings out, GM goes under, you lose a fraction of your wealth.

Carl Veritas's picture
Carl Veritas
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Posts: 294
Re: A way to discontinue the Federal Reserve- a radical way

Attempting to withdraw all our money from banks simultaneously will force the government to declare the old time Bank Holiday.    They'll simply close the banks to halt the run, like they did in the past.  Even when our paper dollars were still redeemable in gold, the government would suspend convertibility,  usually during wartime when the printing presses are running full throttle.

 

Jefferson opposed central banking,  But there were the likes of Hamilton  who advocated it.  

 http://mises.org/story/3164

 

 

 

 

krogoth's picture
krogoth
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Posts: 576
Re: A way to discontinue the Federal Reserve- a radical way

We need to be prepared for when the breakers trip, because the government and banks have had multiple decades to prepare for any situation. A Bank Holiday is one of the tools in the governments arsenal. One of our tools is a bank run. When we run out of tools, we as a people are doomed.

 

 

 

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