Forum Post: Replacing the Federal Reserve with a National Bank
Posted 12 years ago on Nov. 10, 2011, 6:08 p.m. EST by zorno
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To replace the Fed with a national banking system, the first step would be the bankruptcy reorganization of the old system. This would eliminate the bottomless pit of illegitimate debt created by gambling in derivatives and other phony financial products. During the Great Depression, Roosevelt did this in a couple weeks.
The bill intended to accomplish this is of course Glass Steagall, which is currently gaining substantial support. However, it would first require the impeachment of Obama since he has publicly said that he would veto it.
Than a national bank would be established to finance projects for economic development at low interest rates, such as 0-2% over long periods, like fifty years. This is possible since it would be a national bank, owned by the people that wouldn't have to pay outrageous profits to private owners.
The money would be invested in high tech infrastructure projects such as advanced transportation and energy systems. By creating jobs and improving the efficiency of the economy, these kinds of projects would naturally pay themselves off through increased tax revenue.
Uh, we have a national banking system, and the Fed didn't issue derivatives.
The Fed has private owners, so its not a national banking system.
Derivatives have been allowed to exist again through the deregulation of the financial system. The joining of commercial and investment banks into single entities requires that we the people bail them out of the tremendous debt they have created.
The Fed is not as private as you might think. The chairman, vice- chairman and the board members are appointed by the President and confirmed by the Senate I'm all for the reinstatement of Glass-Steagall and tighter regulation of banking through.
Do you think the Fed functions appropriately in our society?
I believe mistakes have been made.