Bank of England Chief Mervyn King Proposes Eliminating Fractional Reserve Bankin

[Ares]

Mervyn King - the governor of the Bank of England - has proposed abolishing fractional reserve banking.

As the BBC noted last week:

Mervyn King, the governor of the Bank of England, has tonight made a big intervention into the debate on banking reform. In a speech at Buttonwood, New York, he [listed] much more radical proposals.

1. Forcing the riskiest banks to hold capital "several times the magnitude" of requirements at present.
2. The Volcker rule-style enforced breakup of banks into speculative and non-speculative arms.
3. The "Kotlikoff proposal", which forces banks to match each pool of risks with a requisite amount of capital, preventing losses in one spilling over into another.
4. Stunningly, Mervyn King imagines the "abolition of fractional reserve banking":

"Eliminating fractional reserve banking explicitly recognises that the pretence that risk-free deposits can be supported by risky assets is alchemy. If there is a need for genuinely safe deposits the only way they can be provided, while ensuring costs and benefits are fully aligned, is to insist such deposits do not co-exist with risky assets."

King does not advocate any of these radical plans - but the fact that he goes out of his way to list them, and to place them on the agenda of the UK's Independent Commission on Banking, means that we are not yet at the end of the debate about long-term reform of the banks.

***

Beyond the technicalities, the fact that a central banker in a G7 country is prepared to imagine such outcomes is itself significant.

Moreover, King wrote to Ben Dyson and stated:

You suggest that banks should be forced to conform to the underlying purpose of the 1844 Bank Reform Act. You might be aware that I have said publicly that I think ideas in this spirit - such as those advocated by John Kay - certainly merit serious consideration in the debate as to how we reform our financial system. I remain sympathetic to these views. But as I said in my previous letter, I do not want to prejudice the outcome of the Banking commission's deliberations. Now the Commission has been set up, I think we all should wait to see its conclusions."

As Dyson explains:

The 1844 Bank Charter Act ('Reform' is a typo) was a piece of legislation that prohibited commercial banks from printing paper notes (£1, £5, £10 and so on). Before this law was passed, banks were permitted to print as many paper notes as they wanted, up to the point where they printed too many and went bankrupt (as everyone cashed in their paper notes at once).

That situation should sound very similar to the situation that we have today - we currently allow commercial banks to 'print' money in the form of digital bank deposits (the numbers in your bank account). In the years up to 2007, the banks 'printed' far too much of this digital money, to the extent that they - and the economy - started to collapse.

The 'underlying purpose' of the 1844 Bank Charter Act was to prevent the commercial banks creating money and to restore that privilege to the state. It had become obvious to the government of the day that if banks were allowed to create money, they would keep creating money up until the point where it destabilized the economy, so they could not be trusted with this responsibility.

So, in plain English, Mervyn King appears to be saying:

"I agree that banks should probably be stopped from creating money, and recommend John Kay (or Laurence Kotlikoff's) proposals. But it's not for me to say - let's leave it to the Banking Commission."

It's very reassuring to know that the top guy at the Bank of England understands the root of the issue and is promoting solutions that would go a long way to addressing it. Both John Kay and Laurence Kotlikoff's proposals would prevent commercial banks from creating money (or 'issuing credit') for their own benefit at the expense of the wider economy and the public.

Ironically, while King is proposing the potential elimination of fractional reserve banking (i.e. a return to 100% reserves), Ben Bernanke has proposed the elimination of all reserve requirements (i.e. requiring no reserves):

The Federal Reserve believes it is possible that, ultimately, its operating framework will allow the elimination of minimum reserve requirements, which impose costs and distortions on the banking system.

http://www.washingtonsblog.com/2010/10/head-of-bank-of-england-maybe.html

[General of Darkness]

They would have to eliminate about 75% of the people on the planet to make that work. Don't get me wrong, I completely dislike the fractional reserve banking scam but to have growth and wealth with the current population explosion we've had in the last century we would all be serfs without it.

OK, I'm ready.

http://images.thetruthaboutcars.com/2008/12/flame_suit.jpg

[7th trump]

They would have to eliminate about 75% of the people on the planet to make that work. Don't get me wrong, I completely dislike the fractional reserve banking scam but to have growth and wealth with the current population explosion we've had in the last century we would all be serfs without it.

OK, I'm ready.

http://images.thetruthaboutcars.com/2008/12/flame_suit.jpg

Ever thought that maybe because of fractional reserve banking the population exploded with the cheap fiat money it provided?
We today are the result of that type of banking.

[Ares]

General, while I agree in part. The real problem is, is that "Growth" on a finite planet is unsustainable.

Unfortunately I do not have an answer to this problem. But you cannot have sustainable accumulative growth on a finite planet with finite resources.

[General of Darkness]

General, while I agree in part. The real problem is, is that "Growth" on a finite planet is unsustainable.

Unfortunately I do not have an answer to this problem. But you cannot have sustainable accumulative growth on a finite planet with finite resources.


That really is the question, or should I say questions. I've got a lot of ideas bouncing around in my head, while I'm trying to consider solutions. The first thing that comes to mind is the barter system. It was the perfect example of, the harder you worked the more you gained. Now it would be insane to think that we can get to a system where 10,000 heads of lettuce buys you a car, but that is pure equal exchange. That's why the whole idea of government and it's growth is a perfect example of an abomination. The fractional reserve banking system is abnormal, and unfair unless you own a bank.

So back to fractional reserve banking. FRB is just ONE of MANY problems occurring in our current financial system. For ETC, the reason they stopped reporting the M3 report was because TPTB knew we'd be in the state we are now. Inflate the money supply and DON'T TELL ANYONE, because that would devalue the dollar and create inflation.

So IMHO, the only solution would be to set a MARK and say, OK, there's X in circulation, deal with it. That would remove the influence of the FED, and for better or worse, market prices would be set by the market itself. However, in my solution, people would die hungry in the streets and cities would burn.

[Ares]

Yes they would, but so would those who currently rely on said government to pay for their sustenance. The problem is as throughout history. The monetary instrument used as the medium of exchange to purchase goods, services, and most of all to pay the farmer to buy the food he produces.

The current monetary system is an abomination subject to fraud, abuse, treason, terror, and extortion from the IRS. The problem is to satisfy all the needs of everyone. A gold / silver standard won't do that. Maybe a hybrid system of commerce? Credit for the government and banks, money (gold and silver) for the populace at large. So many grams of silver / gold is worth so many credits? I'm not sure I'm just throwing out a possible solution at an attempt to resolve the problem of not enough "money" for everyone.

[platinumdude]

It would great the biggest deflation ever seen. Cash would be king, and PMs would go down.

[Filthy Keynes]

They would have to eliminate about 75% of the people on the planet to make that work. Don't get me wrong, I completely dislike the fractional reserve banking scam but to have growth and wealth with the current population explosion we've had in the last century we would all be serfs without it.

OK, I'm ready.



That is a Keynesian LIE!

(Don't take this personally, it is directed at the LIE)
http://martyrobertsblog.com/images/nuclear-explosion-chemical-reaction.jpg

[General of Darkness]

OK, you call it a lie, or Keynesian and give me a the finger, and I did offer a solution.

So what's your solution f*ck head?

[Filthy Keynes]

f*ck head?


I was flaming the LIE not you.

I'd also suggest that you learn how to speak respectfully to people - it will serve you far better than all the gold and silver in your possession. Keynesians are everywhere because Keynesianism "makes sense" on a superficial level. It is only after one delves deeper into the issues that one can discover the maggot-rot that it is.

The solution is:
-Full Reserve
-Interest Free
-Gold and Silver

Bill Still has good points about fiat currency, but the ones CONTROLLING the money supply, if they are human, are NEVER going to be able to resist the supreme power they have.

[General of Darkness]

f*ck head?


I was flaming the LIE not you.

I'd also suggest that you learn how to speak respectfully to people - it will serve you far better than all the gold and silver in your possession. Keynesians are everywhere because Keynesianism "makes sense" on a superficial level. It is only after one delves deeper into the issues that one can discover the maggot-rot that it is.

The solution is:
-Full Reserve
-Interest Free
-Gold and Silver

Bill Still has good points about fiat currency, but the ones CONTROLLING the money supply, if they are human, are NEVER going to be able to resist the supreme power they have.




Excellent. Better than the finger. But how do you put that into this economy? I think I know the answer, I just wanna see someone else say it.

[Filthy Keynes]

f*ck head?


I was flaming the LIE not you.

I'd also suggest that you learn how to speak respectfully to people - it will serve you far better than all the gold and silver in your possession. Keynesians are everywhere because Keynesianism "makes sense" on a superficial level. It is only after one delves deeper into the issues that one can discover the maggot-rot that it is.

The solution is:
-Full Reserve
-Interest Free
-Gold and Silver

Bill Still has good points about fiat currency, but the ones CONTROLLING the money supply, if they are human, are NEVER going to be able to resist the supreme power they have.




Excellent. Better than the finger. But how do you put that into this economy? I think I know the answer, I just wanna see someone else say it.


I personally believe that it is not possible to save this economy at this point because the way to save it is so politically painful and the ignorant masses would NEVER vote for the austerity. But, not saving it, is going to be more painful. Either way, the lavish lifestyles of the western nations are going to be obliterated.

"A really efficient totalitarian state would be one in which the all-powerful executive of political bosses and their army of managers control a population of slaves who do not have to be coerced, because they love their servitude. To make them love it is the task assigned, in present-day totalitarian states, to ministries of propaganda, newspaper editors and schoolteachers.... The greatest triumphs of propaganda have been accomplished, not by doing something, but by refraining from doing. Great is truth, but still greater, from a practical point of view, is silence about truth." ~ Aldous Huxley

[Filthy Keynes]

The elite know what is going to happen. Listen to Joe Biden two years ago:

"Gird your loins," Biden told the crowd. "We're gonna win with your help, God willing, we're gonna win, but this is not gonna be an easy ride. This president, the next president, is gonna be left with the most significant task. It's like cleaning the Augean stables, man. This is more than just, this is more than – think about it, literally, think about it – this is more than just a capital crisis, this is more than just markets. This is a systemic problem we have with this economy." "

[General of Darkness]

I personally believe that it is not possible to save this economy at this point because the way to save it is so politically painful. But, not saving it, is going to be more painful. Either way, the lavish lifestyles of the western nations are going to be obliterated.

"A really efficient totalitarian state would be one in which the all-powerful executive of political bosses and their army of managers control a population of slaves who do not have to be coerced, because they love their servitude. To make them love it is the task assigned, in present-day totalitarian states, to ministries of propaganda, newspaper editors and schoolteachers.... The greatest triumphs of propaganda have been accomplished, not by doing something, but by refraining from doing. Great is truth, but still greater, from a practical point of view, is silence about truth." ~ Aldous Huxley


I ask you for a solution, and you give me Huxley? Seriously? That's a commentary, not a solution.

99% of what's on the internet is a commentary. While this isn't an attack on you, but I think as a reflection I've actually offered a solution versus quoting someone that lived with his parents.

EDIT - I will work on finding a solution. Nose to the grind stone.

[Filthy Keynes]

Reread that quote from Biden. He KNOWS that they are going to have to make hyperinflation. He KNOWS this because that is what he was told when he was in meetings with "economic advisors" even before the election.

Look up the Augean Stables. It is basically an impossible task. They will solve it through hyperinflation. Mark my words - gird your loins, this isn't going to be easy!

http://blogs.abcnews.com/politicalradar/2008/10/biden-to-suppor.html

[Filthy Keynes]

we would all be serfs without it.




The sick, ugly truth is this: If you eat, if you consume energy, you MUST PRODUCE SOMETHING equal or greater than that what you eat or consume. If you do not, then you deserve the death sentence, and you WILL DIE - and by God you will die. Fortunately God made us to resist death of starvation for a short time - long enough for us to produce something that we can exchange in return for food. A day or two of work ought to be enough to get you back on your feet - none of this "LOST DECADE CRAP!".

That is the LAW OF NATURE.

Fractional Reserve Banking seeks to have a reproductive slave population working to pay their way out of debt and feeding the kings of the earth so that the kings can live a life where they produce LESS than they consume (a free lunch for them).

Full Reserve banking means that if you want to get a loan, you will have to borrow it from somebody who has undergone personal austerity THEMSELVES and SAVED the money. There is NO FREE LUNCH because who ever has that extra money has had to SAVE up for it and SAVING is the hardest work that any man can do.

We call this sort of thing: PRIVATE CAPITAL FORMATION - something that is anathema in our current Communist/Fascist dictatorship. There are no LOANS FROM BANKS. If you want a house, then you SAVE UP FOR IT yourself!

The "bubbles" in this sort of system are microscopic and short lived. In fact, they can be as short lived as lasting only a few hours. If you earn a silver coin today and then have a huge breakfast tomorrow and blow your silver coin on breakfast, you will be hungry by dinner, but you won't have any more money to buy dinner. So you will STARVE for a meal. Then the next day you will go out and EARN another coin and this time you won't blow it all on breakfast.

It is like taking an adult and having to put him in diapers again. Full Reserve means that a bank holds your money for you in a SAFE place and you pay him a small fee. He keeps the capital there (YOUR CAPITAL THAT YOU WORKED FOR) and he DOES NOT LOAN IT OUT - EVER. We use a stock market for making loans where private entrepreneurs can offer their stock and people can bid for the stock. We DO NOT NEED BANKS except for their SAFE.

[General of Darkness]

I'll ask this again. Offer a solution. Not a diatribe of how we've being enslaved, most GSUSers get that.

FILTHY KEYNES, fix it. I offered a semi solution. But please stop with this b.s. of WHY it's wrong. We get that. Offer a solution for fuck sake.

[Filthy Keynes]

I'll ask this again. Offer a solution. Not a diatribe of how we've being enslaved, most GSUSers get that.

FILTHY KEYNES, fix it. I offered a semi solution. But please stop with this b.s. of WHY it's wrong. We get that. Offer a solution for f*ck sake.


I already offered a solution:

The solution is:
-Full Reserve
-Interest Free
-Gold and Silver


What is so hard about that? Why don't you like this solution?

And what was your solution - I missed it.

PS I"m off to bed, it's late here.

[Filthy Keynes]

However, in my solution, people would die hungry in the streets and cities would burn.


People die hungry in the streets and cities burn under fractional reserve banking. There is no way to "undo" the sins of fractional reserve banking that will have their final consequences felt in USA/the west. But we can build a new future for the next generation. People are GOING to die either way.

http://www.youtube.com/watch?v=7ubJp6rmUYM

[Filthy Keynes]

BILLIONS are going to die as a consequence of fractional reserve faux banking:

http://www.youtube.com/watch?v=mLA-Sn6bi-U

[Filthy Keynes]

One last thought before I go to bed:

It seems to me that you still think that there is a "solution" to this problem that we have today. There isn't. What has been done can not be undone. We can only affect tomorrow and the days ahead - but the DEBTS MUST BE REPAID one way or another, either through extreme austerity, or through voluntary austerity, or through hyperinflation. There is NO EASY solution for this mess that has already been created.

Having said that, there is a solution to the ONGOING problem of debt accrual. Even in the Biblical times there was debt accrual which was wiped clean every seven years - which means that no one had a loan for a duration in excess of seven years. The notion that a man can be enslaved to debt for THIRTY years is preposterous and inhumane.

[General of Darkness]

One last thought before I go to bed:

It seems to me that you still think that there is a "solution" to this problem that we have today. There isn't.



There is a solution, YOU JUST HAVE TO LOOK FOR IT. ;)

[Mouse]

The solution is written in the Constitution....the Gov coins the money in silver and gold. They can print however much they need but the backing of PM's will always be barking at their rear, lest they print too much. The Fed and the global bankers need to be removed first, if you were to reorganize from the top, or the corparations need to be destroyed if you are to approach it from the bottom. It matters not, the people will suffer excruciating pain when the solution is reached. It is debt or death for most. They will suckor the debt.

Oh, and don't forget to Rock the Vote......I mean, kill any proposition that will cost anything, remove all incumbents by voting for ANYONE else. F The system UP by random acts of pencil punching. I know it means nothing and you won't ever change anything.....but if you help remove one incumbent, you have changed it. If you vote down one tax-spend agenda, you have changed it. It will drive the crisis closer if you fick with their plans. Just be chaotic as shit, vote for whoever is not in office and vote down any agenda that costs anything......

[Book]

http://image.guardian.co.uk/sys-images/Film/Pix/pictures/2007/09/17/jamesstewart460.jpg

Fractional Reserve Banking just needs a little Christian love and understanding once in awhile. Let's all take the money from under our mattresses and deposit it to help out the poor jew banker guy. Christmas is soon upon us goyim and we all want to once again feel all warm and fuzzy:

http://www.filmreference.com/images/sjff_01_img0241.jpg

|--0--|

[General of Darkness]

OK big mouth, what's your solution Book? I'll challenge each and everyone of you. Provide a solution.

[Book]

OK big mouth, what's your solution Book?



There isn't one. It is what it is. Us goyim are doomed.

:(

[woodman]

OK big mouth, what's your solution Book? I'll challenge each and everyone of you. Provide a solution.


The solution is simple. Eliminate the Federal Reserve. There is no reason for us to pay interest on money that is created out of thin air by a private corporation. To think that such is in any way necessary is the height of stupidity. We have government, like it or not and it will continue in some form. The governments highest possible function would be to provide a debt free money system for facilitating transactions. There is no earthly reason why we should spend our lives as slaves paying back interest (that doesn't exist) on money that is itself a lie.

We are slaves. We will remain slaves until we have our own money. Kennedy tried to free us and they killed him. How much longer are we going to take this shit? When people still have the immature attitude and poor understanding of money that you do, then I guess we will be serfs forever. People who suffer from monetary ignorance such as you have displayed by your remarks about needing this system should be slaves as a punishment for your stupidity.


Here are some quotes. YOU NEED TO ABSORB THESE GENERAL.


It is impossible to grasp the meaning of the idea of sound money if one does not realize that it was devised as an instrument for the protection of civil liberties against despotic inroads on the part of governments. Ideologically it belongs in the same class with political constitutions and bills of rights. The demand for constitutional guarantees and for bills of rights was a reaction against arbitrary rule and the nonobservance of old customs by kings.
Ludwig von Mises

"All the perplexities, confusions and distresses in America arise not from defects in the constitution or confederation, not from want of honor or virtue, as much as from downright ignorance of the nature of coin, credit and circulation." (Absolute capitalist economics and power)

--PRESIDENT JOHN ADAMS


"Banking was conceived in iniquity, and was born in sin. The Bankers own the Earth. Take it away from them, but leave them the POWER to create deposits, and with the flick of the pen, they will create enough deposits, to buy it back again. However, take it away from them, and all the great fortunes like mine will disappear, and they ought to disappear, for this would be a happier and better world to live in. But if you wish to remain the slaves of Bankers, and pay the cost of your own slavery, let them continue to create deposits."

--SIR JOSIAH STAMP, (President of the Bank of England in the 1920's, the second richest man in Britain)

"This is a staggering thought. We are completely dependent, on the (compounding interest) Commercial Banks. Someone has to borrow (Request the manufacture of) every dollar, we have in circulation, cash or credit. If the Banks create (At the request of the consumer) ample synthetic money (All money is fiat), we are prosperous; if not, we starve. We are, absolutely, without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity, of our hopeless position, is almost incredible, but there it is. It is the most, important subject, intelligent persons can investigate and reflect upon. It is so important that our present civilization may (Not may...Inevitably will) collapse (Implode), unless it becomes widely understood, and the defects remedied very soon." (the remedy will cause the implosion)

--ROBERT H. HEMPHILL (Credit Manager of Federal Reserve Bank, Atlanta, Georgia 1938)

"Slavery is likely to be abolished by the war power and all chattel slavery abolished. This I and my European friends are in favor of, for slavery is but the owning of labor and carries with it the care of the laborers, while the European plan, led on by England, is that capital shall control labor by controlling wages. The great debt that the capitalists will see to it is made out of the war, must be used as a means to control the volume of money. To accomplish this the bonds must be used as a banking basis. We are now waiting for the Secretary of the Treasury (Salmon P. Chase) in the Lincoln cabnet) to make this recommendation to Congress. It will not do to allow the greenback, as it is called, to circulate as money any length of time, as we can not control that. But we can control the bonds and through them the bank issues."

--FROM A SECRET AGENT - 1862

"I have completed to-day a very great thing. I have finished the National Bank Act. It will be a blessing to the country long after I am dead.'"

--Salmon P. Chase, Lincoln's Secretary of the Treasury

Lies can outlive liars.

"My agency, in promoting the passage of the National Bank Act, was the greatest mistake in my life. It has built up a monopoly which affects every interest in the country. It should be repealed, but before that can be accomplished, the people should be arrayed on one side, and the banks on the other, in a contest such as we have never seen before in this country."

--Salmon P. Chase is the picture on the largest denomination Federal Reserve Banknote ever produced the $10,000 note...And the Chase in Chase Manhattan Bank.

"I set to work to read the Act of Parliament by which the Bank of England was created in 1694. The inventors (Evil manipulators of the Universe) knew well what they were about. Their design was to mortgage by degrees the whole of the country (And now Earth), all the lands, all the houses, and all other property, and even all labor, to those who would lend their money to the State—the scheme, the crafty, the cunning, the deep scheme has produced what the world never saw before—starvation in the midst of plenty."

--WN. COBBETT



"I can hire one half of the working class to kill the other half."

--Jay Gould, robber baron (Absolute capitalist), 19th Century

"For at least another hundred years we must pretend to ourselves and to every one that fair is foul and foul is fair; for foul is useful and fair is not. Avarice and usury and precaution must be our gods for a little longer still.(1930)"

"I work for a Government I despise for ends I think criminal."

--JOHN MAYNARD KEYNES, (Chief Architect with Harry Dexter White of the 1944 Bretton Woods system)

"If you feed enough oats to the horse, some will pass through to feed the sparrows." - in relation to trickle-down economics

"Under (Absolute) capitalism, man exploits man. Under communism (Absolute capitalism), it's just the opposite."

"The only function of economic forecasting is to make astrology look respectable."

"The modern conservative (absolute capitalist) is engaged in one of man's oldest exercises in moral philosophy; that is, the search for a superior moral justification for selfishness."

"People of privilege (Absolute capitalists) will always risk their complete destruction rather than surrender any material part of their advantage. (Power)"

"One of my greatest pleasures in my writing has come from the thought that perhaps my work might annoy someone of comfortably pretentious position. Then comes the realization that such people rarely read."

--John Kenneth Galbraith the above 7 quotes.

"A banker (Any absolute capitalist) is a person that lends you his umbrella when the sun is shining and wants it back the minute it rains."

--Mark Twain


"Since I entered politics, I have chiefly had men's views confided to me privately. Some of the biggest men in the United States, in the Field of commerce and manufacture, are afraid of something. They know that there is a POWER somewhere so organized, so subtle, so watchful, so interlocked, so complete, so pervasive, that they better not speak above their breath when they speak in condemnation of it."

--Woodrow Wilson

"I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world, no longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men."

--Woodrow Wilson the face on the $100,000 Gold certificate.

"That is simple. In the Colonies we issue our own money. It is called Colonial Scrip. We issue it in proper proportion to the demands of trade and industry to make the products pass easily from the producers to the consumers. In this manner, creating for ourselves our own paper money, we control its purchasing power, and we have no interest to pay no one."
Benjamin Franklin

"Capital must protect itself in every way... Debts must be collected and loans and mortgages foreclosed as soon as possible. When through a process of law the common people have lost their homes, they will be more tractable and more easily governed by the strong arm of the law applied by the central power of leading financiers. People without homes will not quarrel with their leaders. This is well known among our principle men now engaged in forming an imperialism of capitalism to govern the world. By dividing the people we can get them to expend their energies in fighting over questions of no importance to us except as teachers of the common herd."
J. P. Morgan

"The whole profit of the issuance of money has provided the capital of the great banking business as it exists today. Starting with nothing whatever of their own, they have got the whole world into their debt irredeemably, by a trick. This money comes into existence every time the banks 'lend' and disappears every time the debt is repaid to them. So that if industry tries to repay, the money of the nation disappears. This is what makes prosperity so 'dangerous' as it destroys money just when it is most needed and precipitates a slump. There is nothing left now for us but to get ever deeper and deeper into debt to the banking system in order to provide the increasing amounts of money the nation requires for its expansion and growth. An honest money system is the only alternative."
Frederick Soddy



100% of what is collected is absorbed solely by interest on the Federal Debt ... all individual income tax revenues are gone before one nickel is spent on the services taxpayers expect from government.
grace commission


It is impossible to grasp the meaning of the idea of sound money if one does not realize that it was devised as an instrument for the protection of civil liberties against despotic inroads on the part of governments. Ideologically it belongs in the same class with political constitutions and bills of rights. The demand for constitutional guarantees and for bills of rights was a reaction against arbitrary rule and the nonobservance of old customs by kings.
Ludwig von Mises

"If this mischievous financial policy, which has its origin in North America, shall become endurated down to a fixture, then that Government will furnish its own money without cost. It will pay off debts and be without debt. It will have all the money necessary to carry on its commerce. It will become prosperous without precedent in the history of the world. The brains, and wealth of all countries will go to North America. That country must be destroyed or it will destroy every monarchy on the globe." - Hazard Circular - London Times 1865

[woodman]

I need to post these again.


100% of what is collected is absorbed solely by interest on the Federal Debt ... all individual income tax revenues are gone before one nickel is spent on the services taxpayers expect from government.
grace commission


It is impossible to grasp the meaning of the idea of sound money if one does not realize that it was devised as an instrument for the protection of civil liberties against despotic inroads on the part of governments. Ideologically it belongs in the same class with political constitutions and bills of rights. The demand for constitutional guarantees and for bills of rights was a reaction against arbitrary rule and the nonobservance of old customs by kings.
Ludwig von Mises

"If this mischievous financial policy, which has its origin in North America, shall become endurated down to a fixture, then that Government will furnish its own money without cost. It will pay off debts and be without debt. It will have all the money necessary to carry on its commerce. It will become prosperous without precedent in the history of the world. The brains, and wealth of all countries will go to North America. That country must be destroyed or it will destroy every monarchy on the globe." - Hazard Circular - London Times 1865

[Neuro]

OK big mouth, what's your solution Book? I'll challenge each and everyone of you. Provide a solution.

The current system must crash and burn, and many will die. Hyperinflation will come, since it allows those in control of the failing system, the longest time to suck it dry... Barter is honest trade, and will replace the system. Those who can not produce what they need, or barter something someone else needs for something he needs, will die, and the current system has ensured there are many people like that...

[Filthy Keynes]

Thanks for those excellent quotes. I have read most of them before, but it is really nice to have them in a short collection.

[Ash_Williams]

Actually it made more sense when banks issued their own notes. Don't trust the bank then don't accept the note or deposit your money there.

If people understood things better the banks could advertise the reserve ratio, and the interest they would pay on deposits. 100% reserve you get maybe -1% interest, but if you want to risk a 0% reserve you could be paid 10% interest. No more FDIC and no more excuses. Competing private currencies.

[Silver Rocket Bitches!]

So IMHO, the only solution would be to set a MARK and say, OK, there's X in circulation, deal with it. That would remove the influence of the FED, and for better or worse, market prices would be set by the market itself. However, in my solution, people would die hungry in the streets and cities would burn.


How is this different than the gold standard which says there is X amount of gold in circulation, deal with it?

That worked once. The failure came when the greedy banksters printed more receipts than they had gold for causing runs on the bank and loss of confidence.

As long as corruption reigns, there will be no adequate monetary policy no matter how perfectly drawn up.

[FreeEnergy]

General of Darkness, I already posted a solution in one thread, maybe I'll dig it up...but I'll repost it.

You are all solving monetary problem, when, as the previous poster correctly pointed out, it is a corruption problem as well. You aren't going to solve corruption with new money.

The solution, however, have been staring at you since the beginning. It is in the Bible, only hidden and rewritten by jews, who - strangely as it seems - hate Moses.

The solution is what Moses originally created:
1. COURT SYSTEM INDEPENDENT FROM THE GOVERNMENT.

When the courts are part of the government, they are part of a problem, and the corrupt judges are just paid off, and the one not corrupted kicked out. There is no controlling mechanism, so naturally all shit floats to the top. And you get totally corrupt system. When the Courts are separate from the gov and aren't subordinate to the gov, and better yet ARE LOCALLY ELECTED AND YOU CAN PARTICIPATE AT TRIALS (like it was set up by Moses) - then chances are that a corrupt sonovabitch aren't going to get away with stuff he's getting away with now.

This can be started immediately, regardless of what the government is self-proclaiming. At local levels. Noto some self-proclaiming globalist-owned "authority" in Brussels.

After the system of independent courts is up and running, and there are legal precedents of suing the corrupt bastards who put themselves in charge, then you can worry about moneys.

2. Step 2 would be to ELIMINATE LIMITED LIABILITY PROTECTION, and probably trusts.

This is where the devil is hiding. This is where the corporations can steal your money by selling stocks, bonds, whatever, then put liabilities in one company and assets in the other (private) and bankrupt the publicly "held" liability-ridden company, leaving all the assets for themselves.

The other part of this would be that we could collectively sue someone like BP for the amount of damage they've done, and they won't be able to weasel out because you just raise the steaks or bring in more people who suffered until you put them globalist bastards out of business for good.

3. You will have to handle INHERITANCE LAWS. Because the way they are written now, a few sonovabitches get to own most of the stuff.

4. At this point, you collectively SUE FEDERAL RESERVE AND LARGEST COMMERCIAL BANKS and make them come out of the closet as to what they are - private banking cartel. You attack them in your own court system, non-federal-corporate. You sue them for trillions of dollars, for 100x the damage they've done. You make them pay to everyone, and since they don't have anything, make them release all residential properties that are primary residences to the people, free and clear of any fraudulent mortgage stuff.

Still not changing money system.

Well, maybe at this point it would be a time to talk about a new monetary system based on some standard, like a bag of metals. At this point you are talking about a lot less money that would be needed.

[keehah]

It seems to me that you still think that there is a "solution" to this problem that we have today. There isn't. What has been done can not be undone. We can only affect tomorrow and the days ahead - but the DEBTS MUST BE REPAID one way or another, either through extreme austerity, or through voluntary austerity, or through hyperinflation.
The solution is to end the ponzi scheme, the debts are not repaid, Filthy Keynes. This includes inflation but also slave freedom and Jubilees of many sort as well as letting failed lenders fail.
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TelegraphUK: The world is facing the worst financial crisis since at least the 1930s “if not ever”, the Governor of the Bank of England said last night. (http://www.telegraph.co.uk/finance/financialcrisis/8812260/World-facing-worst-financial-crisis-in-history-Bank-of-England-Governor-says.html)
By James Kirkup 06 Oct 2011
Sir Mervyn King was speaking after the decision by the Bank’s Monetary Policy Committee to put £75billion of newly created money into the economy in a desperate effort to stave off a new credit crisis and a UK recession.

Economists said the Bank’s decision to resume its quantitative easing [QE], or asset purchase programme, showed it was increasingly fearful for the economy, and predicted more such moves ahead.

Sir Mervyn said the Bank had been driven by growing signs of a global economic disaster.

“This is the most serious financial crisis we’ve seen, at least since the 1930s, if not ever. We’re having to deal with very unusual circumstances, but to act calmly to this and to do the right thing.”

[beefsteak]

The solution is to end the ponzi scheme, the debts are not repaid, Filthy Keynes. This includes inflation but also slave freedom and Jubilees of many sort as well as letting failed lenders fail.
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THANK YOU THANK YOU THANK YOU for your succinct and clear-headed response! There are so many of us that share your opinion, but can't say it nearly as well as you have!


beefsteak

[Bigjon]

I was flaming the LIE not you.

I'd also suggest that you learn how to speak respectfully to people - it will serve you far better than all the gold and silver in your possession. Keynesians are everywhere because Keynesianism "makes sense" on a superficial level. It is only after one delves deeper into the issues that one can discover the maggot-rot that it is.

The solution is:
-Full Reserve
-Interest Free
-Gold and Silver

Bill Still has good points about fiat currency, but the ones CONTROLLING the money supply, if they are human, are NEVER going to be able to resist the supreme power they have.

I agree and would add that the original Monetary Act of 179? (3) allowed market principles to govern the amount of money in circulation. People were free to melt down coins and sell them for their bullion price and conversely people could take bullion to any mint and have that bullion turned into coins.