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Could it be this simple? If all money is made from loans, does it mean that without debt we have no money? If this is the case would it not be possible to bypass the Federal Reserve and have the Government make the loans themself and charge interest? Would this taking of profits eliminate the need for income tax? It seems very odd that the Government pays interest to private banks for money the banks created out of nothing. Am I wrong here?
Scenario 1.
Government $$$. 100 Employee to process loan for millions of borrowers. 100 Employees to collect payments. Government gets some income tax from 200 employees.
Scenario 2.
Government $$$. 100 Employee to process loan for 1 million Banks. 100 Employees to collect payments from banks. Government gets some income tax from 200 employees + employees of 1 million banks.
Could it be this simple? If all money is made from loans, does it mean that without debt we have no money? If this is the case would it not be possible to bypass the Federal Reserve and have the Government make the loans themself and charge interest? Would this taking of profits eliminate the need for income tax? It seems very odd that the Government pays interest to private banks for money the banks created out of nothing. Am I wrong here?
I've always believed that the federal governemt exists primarily to protect various corporate interests with a few crumbs thrown to we the people from time to time. If the governemnt implemented your ideas, they would be biting the hand that feeds them, in this case the banking interests. I like your ideas though!
Currency just represents wealth; it is not wealth by itself. The wealth is the business, property and efforts of the American people. The government must borrow and tax to have funds to spend.
If all the debts in the world were paid off, Yes there would be NO money. In actual fact money is only created from the need to have it and once it is created it has to be paid back with interest. Hence all money is debt and all debt is perpetual.
Could it be this simple? If all money is made from loans, does it mean that without debt we have no money? If this is the case would it not be possible to bypass the Federal Reserve and have the Government make the loans themself and charge interest? Would this taking of profits eliminate the need for income tax? It seems very odd that the Government pays interest to private banks for money the banks created out of nothing. Am I wrong here?
Hi tallrick,
That is what i have said for some time. Federal securities back Federal Reserve Notes. Well I didn't say it first.
"If the Nation can issue a dollar bond it can issue a dollar bill.
The element that makes the bond good makes the bill good also. The
difference between the bond and the bill is that the bond lets the
money broker collect twice the amount of the bond and an additional 20%.
Whereas the currency, the honest sort provided by the Constitution pays
nobody but those who contribute in some useful way. It is absurd to say
our Country can issue bonds and cannot issue currency. Both are promises
to pay, but one fattens the usurer and the other helps the People." -Thomas Edison
Currency just represents wealth; it is not wealth by itself. The wealth is the business, property and efforts of the American people. The government must borrow and tax to have funds to spend.
Hi cdelena,
Yes but that does not go into the proper detail. Most of our money is issued directly from commercial banks at interest. They make loans on a promise to pay not on actual bank reserves. Its a scam.
Could it be this simple? If all money is made from loans, does it mean that without debt we have no money?
Yes, it is true...under the Federal Reserve System, "money" is debt - that is, it must be borrowed into existence. Hence the Federal Reserve "Note" (a note is a loan). The fatcat European bankers who started the Fed live LARGE off the interest. The "loans" can never be paid off becasue only the loan portion created any "money"...no provision was made for the "interest" to be paid. No "money" exists for that, because with a loan, they don't loan you the interest along with it!
Quote:
Originally Posted by tallrick
If this is the case would it not be possible to bypass the Federal Reserve and have the Government make the loans themself and charge interest?
If it were the government producing the money, there would be no "loans" involved. No interest involved. The Constitution gives Congress the power to coin gold and silver as money, to assure honest weights and measures, and to regulate the value thereof. Nothing is said about interest, as there would be no loans made.
Quote:
Originally Posted by tallrick
Would this taking of profits eliminate the need for income tax? It seems very odd that the Government pays interest to private banks for money the banks created out of nothing. Am I wrong here?
Nope, you're not wrong here! Mighty funny, wasn't it, that the IRS and the income tax were created right after the Federal Reserve Act was passed! Prior to that there was no income tax, not for the common man. That all came about through the 16th Amendment (never properly ratified, by the way). The government gets the money to pay the interest to the Federal Reserve through the IRS and the income tax.
What an incredible scam. Yet people wonder why living standards have fallen for recent generations. Perhaps we are getting closer to the day when this Ponzi scheme ends.
What an incredible scam. Yet people wonder why living standards have fallen for recent generations. Perhaps we are getting closer to the day when this Ponzi scheme ends.
Keep in mind if we gave the Government the power to "produce money" they would control a lot more in our lives. In fact the founding fathers never intended for us to be on a fiat system - they were 100% for a solid monetary policy and only gave the Government the power to coin money. For example you bring them 2 oz of gold, they weigh it and produce a coin and a stamp that shows its a measured true 2 oz of gold. Checks naturally grew out of that system and then came the invention of the fractional reserve system loaning out more gold than they had in the vault.
The Federal Reserve was snuck in under the guise of making our system more streamlined when in fact it just made bigger bubbles and gave the Government a lot more power in that it can write endless checks via the Federal Reserve. If no one buys our notes, the Fed just prints the money, adding billions and billions of "money" in the form of inflation.
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