1 vote

Monetary system discussion

Almost every single person here is for either the elimination of the Fed are at the very least handing control back to the Congress and make our money work for the people and not the vampire banks.

I want to have a discussion about the proposals that could be seen to do this. Let's not yell at each other or vote up or down, but have a discussion of ideas.

Some of these could be:

1. Abolish the Fed, eliminate fractional banking, and go back to a gold standard or silver standard. This makes sure we can't print away people's savings and will lead to more money in the bank, as it will retain value, and will lead to lending for capital projects.
2. Abolish the Fed, go to Colonial Scrip. This was the first money printed and used by a portion of the nation and brought about by Ben Franklin. It was a paper money, but was limited in print to just meet the need of exchange. Today we could consider this as tied to a GDP number. This allows the money to be a little more elastic, which some argue is needed.
3. Keep what we have. Jamie Dimon votes for this and the rest of his crooked friends.

I do have some concerns about both. On the first, do we have enough gold or silver (real numbers not government lies) to have a gold or silver standard? Could the market be cornered and played with by the elite? If we eliminate fractional reserve banking, will there be enough money to go around or will we just simply readjust prices to pre-inflation levels (i.e. a can of Coke costs a nickel again, a gallon of gas is a quarter, etc. because the money has a much greater value). On the second, can we trust the government to keep the printing to a real GDP number?

Let the ideas fly.

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What's wrong with Ron Paul's

What's wrong with Ron Paul's solution? You didn't include it. Ron doesn't want the gold standard, it's just his second choice. The free market solution is to eliminate all taxes on durable commodities (with the goal of eliminating all taxes) and allow people to trade with whatever they like. As long as both parties agree to the form of payment, the government shouldn't interfere. People can use Dollars, Pesos, Shekels, Gold, Silver, Star Wars action figures, comic books, or even seashells as money. The only important part of any transaction is that both parties agree to the exchange. Competing currencies also ensure there are no real liquidity problems, and allows people to save without risk of currency devaluation (unless they save using a paper fiat currency like the dollar). Freedom of choice is the most important aspect of liberty. If we can't even negotiate our form of compensation, we're not much better off than slaves. In economics, the best system is the one you don't plan.

edit- Actually Ron has only proposed legalizing gold and silver as a first step towards competing currencies, but the goal is a free market.