I dont know if this goes here or not, but I think I found a way

[Volaris]

To abolish the Federal Reserve and not tank the economy. Im posting this here because I'm looking for someone who might know a lot more about monetary policy than I do, to refute or rebuff the assumptions that I'm making...

The Federal Reserve is the bank that lends money to the Fed. Government, and also to other banks when both need liquidity. The Fed can do this because The Fed is in charge of printing/coining all of our currency, and can print as much or as little as The Fed thinks we need to maintain a stable economy. This is what they have been tasked to do by Congress.

When the Government needs a loan because Congress spent more than was raised by the collecting of taxes, the Govt. gets a loan from the Fed. Reserve. But as the Fed is a BANK, and survives as a business by charging Interest on loans, we the taxpayer end up with an ever-increasing level of debt whenever we borrow money from them (that they have no risk in lending to us in the first place, as they just print as much as we ask them for).
Assuming that all of the above assumptions are correct, and please tell me if they are not..

Wouldn't a better, more equitable system be to replace the Federal Bank with a National Credit Union of the Treasury and put a Branch Office in every State? Let them charge interest; as it would our money being lent to our neighbors, neighborhood banks/credit unions,other States, and potentially other nations, we would have a vested interest in turning a profit on our collective lending ability. Any Profit earned on making loans on the credit of the American People could first be put toward paying off the National Debt, and then later, like any other Credit Union, the individuals of WE THE PEOPLE would get back our share of any profits made from loans.
Another thought I had was that if Monetary Policy Power were given to the The Federal Treasury, could some of that profit (if we the people agreed to it) get put into the kitty, and subtracted from the available money supply, thereby REVALUING the Dollar by a set amount per year? Having actual cash stuck away in a Treasury vault somewhere also provides for extra liquidity in the event of a National Emergency (Katrina, the creation of the Dept. of Homeland Sec. after 9/11...not that I think that was necessary..., the Wall Street Bailouts, the Mortgage Crisis, ETC.) Injecting this extra, stashed-away currency into the system would obviously increase inflation, but we, as a people, would at least get to have a debate over what that money could/should be spent on, and isn't that the point of a damn democracy?


As always, criticism is expected, if not necessarily welcome,(lol) and I'm looking forward to all replies.

[dixiegrrrrl]

1. Ever since the Federal Reserve system was created

in the middle of night on Dec. 23rd in Congress, 1913, there have been ideas on how to abolish it.
There is even some question of its legality due to how the votes were cast.

But as you have seen from the recent financial mess, the Fed. Reserve system offers too many people the chance to use OUR tax money to get rich on. Not a chance in hell Congress will find enough honest
members to vote it out of existence.

[Greyhound]

2. +01

[midnight]

3. K&R

[unkachuck]

4. sounds good to me....

....but in this country, we always sandwich a corporation between us and a legitimate governmental function so politicians and corporations can skim and profit at our expense....

....a profit-free government run national bank would benefit the American people tremendously, therefore it will never exist....

[Statistical]

5. The federal reserve does not lend money to federal govt.

So when you post begins with that incorrect premise it isn't a good starting point.

When federal govt needs money (spending > revenue) the TREASURY issues t-bills on the open market. Investors both public and private, foreign and domestic bid in auction for that federal debt.

It has nothing to do with federal reserve.