You consider congress printing and spending money not debt but the Fed printing and giving money to congress to spend as debt?
Let's take what JFK had done for instance. He had printed United States Notes backed by silver instead of using the Federal Reserve Notes which add the additional interest burden.
These notes in circulation would allow for the removal of the interest burdened Federal Reserve Notes, and no it does not add debt to the country.
If we borrow currency from anyone we now have a debt. If we create the cash ourselves there is not a debt involved. In the business world you take the raw materials and batch them into a finished product. Then you sell or lend that finished product out to make your money. This Bank does this and creates the currency then lends it out with interest and we are accepting an invoice for that loan, which is a debt. If we are the ones taking the raw materials and batching them into a finished product (currency), we do not have the need to pay anyone back for that currency. We do have to deal with the value of that money, and what that money is based on, but that is doable.
Nonsense. We elect members from academia. There isn't a multi-thousand person conspiracy of Americans perpetuating control for the Queen of England.
All of the original banks were based on the success and structure of the Bank of England. The controlling powers all had ties to each other and to England. Those that spearheaded the writing of the Federal Reserve Act had ties to the big Banks which had ties to England etc... I'm undecided, but think it could be possible.
And caused a severe depression that hurt many Americans. He starved citizens over a stupid obsession. Also, George Washington signed that bank's chartered. I don't think Washington was a puppet of the England he just defeated, nor someone Andrew Jackson needed to conquer to right the ship.
That wasn't the cause. The non renewal of the Second Bank of the United States was not the issue. He enacted the Coinage Act which required all govt land to be bought with gold and silver. Most banks did not have enough gold and silver to cover the exchange of currency for them and they began to collapse. I don't know if Jackson did it on purpose in his war on banks or if he was too exuberant in his efforts to collect gold and silver to back the dollar and didn't see the collapse coming... but that was not good. It did not have to do with the central bank issue. Nice try though.
As to George Washington, the First Bank of the United States was an idea fought for and against to a standstill. Washington was hesitant to sign, but was left with the final decision and ended up listening to Hamiltons advice as he was the Secretary of the Treasury at the time. This was not the first central bank either, Hamilton pushed for the Bank of North America before that, but it's charter was changed and it stopped functioning as a central bank. Do I think Washington was a puppet? No. I do believe when certain people want something they will push, pull, persuade, pay, and do whatever it takes to get what they want. The people helping them do not always know they are helping.
That's what bankers do. They charge interest.
Yes, and that's the problem We are getting charged interest to use money that should be our money, not their money.
There is also a difference imo with simple interest on a loan vs usury and compound interest.
We get charged interest to have money in our banks and then get charged interest again if anyone decides to borrow that money plus we pay a tax to help pay for that money.
Yes, it's what they do. We don't have to let them though.
We created the Federal Reserve to counter bankers ability to do this and destroy entire communities in the process (back then). Americans were very leery of allowing congress full power to print to their heart's content because they do what politicians do without any controls -- screw everything up! We also didn't trust dirty capitalists with full control so we created this hybrid system and it has worked quite wonderfully compared to the several archaic systems experimented with in the 17th - 19th centuries.
They wanted this and were the main writers and backers of the Federal Reserve Act. They did what they could to get people to want it too.
Even many of the politicians that signed off on it said they didn't like it.
It was passed while a good portion of the House was on vacation.... interesting.
Good thing we control it then.
Do we? What say do you have?
I don't want the boys in the trailer park determining monetary policy.
I'm on the fence if I would rather have someone that didn't know what they were doing, vs someone that knew exactly what they were doing and it was all for their own selfish good and to the harm of others. I think I lean towards not knowing what you are doing as long as there are good intentions in there somewhere.
That was before the Fed and it looks to me like President Garfield got what he called for when the Federal Reserve was created and took that power away from the banking cartels.
That's assuming you are right and that the Fed is just not another incarnation of the banking cartels.
Look it up. You explain Executive order 11110 for me. Also please explain why the United States Notes he printed were quietly and immediately taken out of circulation after his death.
TIA
Desperate times, desperate measures. Lincoln did what he had to do to fund a war. Good on him for doing it.
I don't have any issues with Lincoln doing what he had to do. Why do you not have an issue with him printing greenbacks? He should have just paid the 24-28% interest to the banks right? That's what banks do.
Income taxes would be more necessary under a system where congress prints and spends money.
Not if the other taxes take in enough to cover things and run the country.
Myth. All interest paid to the Federal Reserve is sent right back to the US Treasury every year. With the expansion of the Fed's balance sheet, payment into the Treasury went from something like $39billion to over $70 last year. The funding for Fed operations comes from universal check clearing fees.
I was talking the history of creation and early years of the Fed. Even if that payment was "sent right back to the US Treasury" would that only reduce the debt and the debt includes the additional interest charged?
Money would have no validity without income taxes under such a system, and would quickly enter the worthlessness spiral.
It's possible we need some sort of income tax as backing for our fiat based money so the global value of the dollar does not plummet. I'm on the fence on this one, but an income tax to the extent we are taxed is definitely not needed.