Federal Reserve QuestionsSubmitted by MikeLV on Mon, 02/17/2014 - 22:35
I've been learning more about the role of the Federal Reserve, I watched tons of videos on YouTube and even read Rep. Ron Paul's "End the Fed" book. I was wondering if someone could take the time and answer some of these questions that I can't seem to get a solid answer for.
1) What caused bank runs and panics prior to the creation of the Federal Reserve? Did the Federal Reserve solve the problems of preventing future bank runs?
2) Was there fractional reserve banking when the US was on the gold standard, prior to the creation of the Federal Reserve? Can fractional reserve banking be sustainable or is full reserve banking the best option for a sound monetary policy?
3) If the Federal Reserve is really a private bank ran stockbrokers and private bankers aren't they aware of the inflation caused by their policies? Aren't they hurting their own agenda?
4) If our currency is considered fiat does that mean our 17 trillion dollar debt is fake and shouldn't exist?
5)What is the purpose of keeping track of the debt and deficits if our money is "worthless" anyway?
6)Should Americans be concerned about the estimated 100 trillion dollars it will cost for future entitlement programs such as Social Security & Medicare?
7)What if President Obama does an executive order or Congress passes a law requiring the Treasury Department to reset the national debt to zero? Will there be any negative consequences to the economy if that ever happened?
8)Could the Federal Reserve create an 17 trillion dollars worth of money out of thin air to "pay off" the debt?
I know it's a lot of questions, but I'm interested to know what everyone thinks.