Is the federal reserve a good idea? ?

Question

we print a dollar for X interest, how do you think that is paid back?

so in the end it creates a system of debt.

and debt = slavery.

Answer 1

It's the private banks who print money in the form of fractional lending.  The Federal Reserve only sets the cost of fractional lending for the private banks.

But banks were lending money even before the Federal Reserve was created.  At that time money was backed by gold.  And banks couldn't lend money they didn't have.  But they could lend the money they had.  And the so called debt slavery existed even then.

Perhaps the Fed has a tendency to keep the cost of fractional lending low for private banks.  And this encourages the banks to lend as much money as they can in order to increase their profits.  Excessive lending creates excessive debts.  Which can become unmanageable.

It's possible to let the market place set the interest rates.  And perhaps the market place would do a better job than the Federal Reserve is doing.

Answer 2

I think it is the worst system, it can only lead to the population to turn slaves for the government, as the founding fathers fought for independence from the british, now it is all back how it was, we literally passed our founding fathers as c**p.

Answer 3

USA is the only G8 country that has a corporation as a  "central bank"

run by a board of executives from top us banks

hmm I wonder what their interests are ?

the peoples or bank profits?

you decide

have you heard of "ABCP"?

who let that one out

Answer 4

The basis for your question really is:

Should dollars be backed by U.S. T-Bonds versus some other asset of value?

The use of T-Bonds to back U.S. dollars actually *reduces* the amount of publicly held U.S. debt, and also reduces the net interest payments that have to be paid on that debt.

To illustrate, let's examine how new money enters the economy and the effect on U.S. debt...

Suppose the Fed wants to issue $1B in new money.

To add this to the economy, they use Open Market Operations to purchase $1B of *previously issued" U.S. T-Bonds held by the public. This action has reduce the amount of U.S. debt held by the public by $1B.

Now let's look at the interest on that $1B.

By law, all FRS income after expenses is turned over to the Treasury. So all that interest earned on that $1B? About 85%+ of it is returned to the Treasury; interest that would have otherwise had to be paid to whoever held that debt before.

And because these T-Bonds are needed as collateral for U.S. dollars, essentially it never has to be paid back. When a bond owned by the Fed matures, they have to replace it with another bond purchased from the public.  

So yes, the U.S. has a tremendous debt burden that will have to be paid in years to come. However, the debt held by the Fed is of little consequence.

Answer 5

no, it is not a good idea, basically it is a system of debt & slavery.