re: Would one of you “end the fed” Baws explain to me what would replace it?

Extremely volatile and we’d turn Russia into the 2nd richest country in the world

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This is all relative to the international monetary situation

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Not to the average American consumer.

We desperately need dual, competing economies.

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your Austrian economics dreams come true and there’s no more fed. WHAT THE frick HAPPENS?

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This may sound oversimplified, but go back and look at how the federal government was funded prior to the creation of the Fed.

The idea of the gold standard, or tying currency to any commodity, was to limit the expansion of the money supply to the expansion of actual wealth. If the country’s wealth doesn’t expand, its currency didn’t expand because it didn’t have the wealth to back the creation of new currency.

I would see it happening by fixing the current amount of national debt at its current level, and any increases would have to be tied to real increases in whatever backs the currency.

I enjoy watching some of the old movies or films where they advertise for war bonds. Imagine if they had to actually borrow directly from the direct sale of bonds instead of how the Fed handles it now.

Government spending never got out of control until the Fed came along.

This might be clear as mud, but End The Fed will hopefully add a lot of detail and explanation for you. I haven’t read my copy in a while, but I remember it being a good, succinct overview.

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The gold standard is deflationary.

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wouldn't that mean that money in hand would start buying MORE stuff??

what's wrong with that ?

Afraid that we might end up with "thousandaires" rather than "billionaires" ???

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When you bail out people who have failed with the treasury, you rig the system for investors and bankers.

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I am unschooled in the field of economics - but that is exactly how I see it

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Afraid that we might end up with "thousandaires" rather than "billionaires" ???

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That’s exactly what they’re afraid of.

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This doesn’t sound like it will make all our problems go away forever,

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True, and we would have a new set of problems but they would be more organic and market driven.

Govt uses the Fed to manipulate the economy. Indicators dont look bad, but that doesnt filter down to the average person. It just reflects the Macroeconomy.

Central planners are afraid of natural, market driven approaches because it takes power from them.

Ron Paul’s 1983 comments on a return to the Gold Standard are as relevant and instructive today as they were four decades ago:



Our nation’s inflationary monetary system is the wellspring of the Welfare/Warfare State. The creation of the Federal Reserve over a century ago coincides with a massive expansion of the Leviathan State in this nation; the abandonment of the Gold Standard in 1971 only increased the rate of expansion.

Yet by any objective measure, the current trajectory is simply unsustainable. A return to the Gold Standard would limit the discretionary power of the government to debase currency by endless money printing.

Why gold? The last few decades of the Gold Standard — the 1950s and 1960s — saw a period of sustained economic prosperity in this nation that has not been matched since.

Yet it doesn’t necessarily have to be gold — the dollar could be tied a basket of commodities, including oil or natural gas. Simply pegging the dollar to something with intrinsic value is a means of putting some measure of constraints on the government’s continued policy of overt currency debasement.

My pleasure. I think you’ll enjoy End The Fed. Ron Paul is much more articulate in writing than speaking or in debates. To me, that was his major weakness. Well, that and advocating for fiscal responsibility, which is incredibly unpopular. Sort of like the parent trying to save versus the parent who wants to spend money on everything under the sun.