A Short Banking History of the United States

The US Tax payer, what commodity does google back its earnings with?

 

We back our currency with paper. I wonder at what rate can paper be printed at. Its amazing that we even need to argue about the fact about all of this. Is the federal reverse a part of the american government or is it answerable to the american government or the american people?

 

Are you a subprime broker?

Mexcians and South Americans and all the rest of the immigrants flooding the US are happy to accept Federal Reserve Notes.

Though it would be nice if they were at least partially backed by something. Even copper pennies

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Argentina and Brazil have dropped the dollar as an exchange currency between the two countries.

Venezuela, Bolivia, and Colombia are looking for alternatives.

More than likely, this so-called banking crisis was created by the central bankers to create a more powerful monopoly by dropping the Federal Reserve Note and introducing the 'AMERO' thereby wiping out the Canadian and Mexican currencies.

Central banks are a criminal organization, more dangerous than any crime family because they have the backing of Congress, the courts, and the military.

 

The dollar should be worth more during the next 12 months due to price deflation. Price deflation benefits the 'have nots' and the middleclass. Inflation benefits that 'haves'

One of the mandates of the Fed is to control inflation. But at the same time they want to inflate.

 

Gold

 

A gold backing would be a better system than what we have.

 

I don't believe that there would be enough gold to have a 100% gold standard.

At the end of 2006, it was estimated that all the gold ever mined totaled 158,000 tonnes. 32150 troy ounces = 1 metric ton.

At current consumption rates, the supply of gold is believed to last 45 years.

http://en.wikipedia.org/wiki/Gold

 

You're right in the sense that our government spending is out of control, but having a gold back currency forces the government to keep spending in control. We could also back it will silver or some other precious metals, as long as our currency is backed by a commodity which has real intrinsic value. I read a book by Ron Paul called Gold, Peace, and Prosperity, and it implied that wars would cease if currencies are backed by gold, because the cost of the war would be directly felt by tax payers, and the government couldn't just print out the money to finance it.

There are lots of reasons why wars are fought, but I believe one reason is fiat currencies. When your country uses a paper currency which is not backed by any tangible assets, the government can print money or borrow it whenever they need to for war. This way, the citizens don't feel the full burden of paying for the conflict, at least not at first. With a gold backed currency, the costs of the conflict would be immediately felt, and would reject the war once they see the costs they will pay, if not purely for self interest.

Gold and other precious metals are the key to everything. The true problem that the U.S. and world faces is central banks. These banks, controlled by the elite, aka the Illuminati, have a monopoly on the creation of money. If you or I counterfeit dollars, and we get caught, we go to prison, but the Fed and counterfeit as much as it wants. In fact, the Fed is the biggest counterfeiter in the country! The people who get to print and use the money first stay at the top of the economic food chain, at least until the currency collapses as a result, and even then, they can simply shift their assets into secure commodities.

 

Backing our currency with gold would be irresponsible. The gold markets are too easily cornered and a good chunk of that stuff is held by the IMF. Gold has no permanent value so anything backed by it will also have no permanent value.

We should have money that helps facilitate trade. The government should issue the money without having to borrow it at interest. The government can lend at low interest rates against collateral, like land, and this would also be additional income helping lower taxes on the people. And the value of the dollar should be based on the credit of the government.

 

The simple solution to this problem is to prevent any one person or group from cornering this market. The government can do the same thing that it did when the Hunt Brothers tried to corner the silver market in the 80s, that is, put an end to the game.

Not sure what you mean here. Gold has been around for thousands of years. No paper currency has lasted more than 300 years, what other form of money besides metals do you think we should use?

The scenario above would only work if the government was responsible. The U.S. government has shown many times that it is far from responsible. As long as the government has a printing press, you can be sure that they will abuse it. History has shown this to be irrefutable. No one can be trusted with a printing press. Paper money should be outlawed altogether. The Chinese were among the first to use paper money, and the system collapsed within two centuries. Why? Because humans are too greedy and irresponsible to be given control over the issuance of paper money.

The key problem is the Fed. It wasn't here when the country was first founded, why do you think that is? If we needed the Fed that much, the founding fathers would have added it to the constitution, or established it early on. In fact, the founding fathers were totally against a central bank. This includes presidents Andrew Jackson and Thomas Jefferson, the former who actually fought against the introduction of a central bank.

A central bank destroys economies. The IMF and World Bank are corrupt as well. The banking industry must be decetralized as opposed to centralized. The Fed is not even a government institution, it is privately owned and yet the people who run it control every bank in the U.S. along with the government. This basically tells me that the Fed is corrupt, and the bail out was pushed by a private bank to bail out their partners on Wallstreet at our expense.

 

The problem is that you end up with monoply money. For example, Mexico took three zeros off the peso in 1993 and created the new (nuevo) peso. The new peso was valued at 3 to the USD in 1993 and quickly devalued to 10 to 1.

 

The government of Mexico still did not have power over the issuance of monies, they have a central bank.

There would be no problem if the government issued enough money so that products could trade freely and easily from one to another. The government would control its purchasing power and they would have no interest.

It has been done successfully in the past. See tally sticks in England.

 

If the US Government acted reponsibly it would work. I don't have too much faith in that.

However, I don't think a gold standard would work either.

I think a 'debased standard' with lets say a gold double eagle having a face value of $2000 would act as a tripwire.

 

So we should leave our faith in the Fed, a group of people who we have no direct control of through elections?

 

The Fed is out of control.

Bernake means well but the road to hell is paved with good intentions.