What would be some of the positives and negatives of abolishing our central bank system? Or what if the fed was nationalized?
What does nationalization mean?
Abolish the Fed!? r u laik nuts? Why abolish such a benign, caring institution?
having government control our money is what we have now…
people are confused when they think gov. doesn’t control our money right now…
gov. says when to print and how much to print.
Are there negatives to destroying the Fed? I don’t know if that is possible [ to have negatives ]
If you’re one of its beneficiaries (e.g. Bernanke), then there are. [:D] Might have to scrape a little to survive until he can get a real job…
What are the negatives of abolishing a giant printing press?
[:|]
Well one negative is that the banks would become susceptible to collapse in a liquidity crisis created by their fractional reserve inflation schemes.
Still, the interest paid to the monopolized bank goes into the pockets of a select few. Since there’s only one bank, they are guarenteed profits. Letting banks compete against each other for interest would result in better banks. Am I wrong?
Fed is a central bank in all but name.
As for the pros and cons, depends on the circumstances. If you abolish only to reinstitute it under a different name and continue issuing fiat money, it won’t make much of a difference.
Unfortunately, Fed is the real foundation of the government power (police and IRS agents must be paid, too). So I don’t see it being abolished as long as the federal government is still in control of the country.
But once those banks die, wouldn’t others take its place? That way, more efficient banks survive and the incompetant die, thus letting capitalist evolution run its course.
We won’t be able to print giant books. [H]
Exactly. There is no reason not to abolish the Federal Reserve.
The Fed is not a for profit organization. Avoid the conspiracy nuts out there. Any interest it collects by buying government IOUs it refunds into the treasury.
is there a figure that would indicate how often and how much money and or credit the federal reserve has created in order to keep banks afloat?
would a model of bank that has never needed the federal reserve for bailing out have been the norm?
The only con i could think of is the congress deciding the measure of currency, and having private enterprise compete under such guidelines.
Yes but it sure helps the connected investment banks (especially GS) and other financial institutions make far more in profits than they would in a free market.
Is that a conspiracy theory?
It’s got the name too