A Question For Those Who Detest The Federal Reserve

[ThomWV]

So tell me, if there is no Fed then what is there?

I know there are a number of people here who champion the elimination of the Federal Reserve System, I have seen many of their comments. I have also watched the video purporting to describe how money is created and I understand the basic nuts and bolts of how our banking system works and I understand both the financial instruments involved, the finance methods being used, and where the problems we have will lead if not addressed. So I don't need those things explained to me. What I want to know is what will be the replacement for the Fed? How will money come to be, how will it find its way into circulation? What will the mechanism be? Oh, before the gold bugs start in, let me also say that I understand the limitations of a gold based currency, that economic growth of the nation as a whole - both the rate and overall growth - would ultimately be limited to the value of the gold you took out of the ground. The only person to get rich on the deal is the owner of the gold mine, for virtually everyone else its trickle down at its finest.

[JackRiddler]

1. Ask Ben Franklin.

"In the colonies we issue our own money. It is called Colonial Scrip. We issue it in proper proportions to the demands of trade and industry."

[rucky]

2. Why not back it against a renewable resource?

:shrug:

[ThomWV]

3. Isn't that what credit is?

[rucky]

4. credit's value is in the promise to repay

which has created an arbitrary and unfair system of distributing "wealth" (debt). More and more the debt isn't collateralized, so the promise carries less value.

I was thinking of something more tangible.

[HamdenRice]

5. At least this would be very, very good for South Africa

a country I am very fond of. I hear they encourage immigration.

Not sure it would work for the rest of the world.