Quote:
Originally Posted by Had2SaySumthin
Anyway, to stay on point................
You have the comm. You're charged with taking us out of this mess. What do you do?
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if i'm the dictator, the first thing I do is reject this idea that
private banks should be getting wholesale funding from the
federal reserve.
so first off, i return the private financial system to a free market, and let it sink or swim. No more Fed credit, no more GSE's. It will probably sink. when it does, i would be ready with a flood of money from the fed, to be pumped directly into households, rather than the corporate & banking sector. Enough to grow the money supply, but not so much that it causes too much inflation. I would not limit money creation to the household sector, I would also consider the idea of having state banks, and these state banks would be the primary dealers, sort of like how North Dakota already works.
then i would change the tax code to discourage debt, not encourage it.
then i would flatten the tax code so that wages don't support the entire system; capital owners and businesses have to start paying as much as wage-earners.
then i'd sit back and watch the carnage, as these huge state-backed corporations fall apart, without any more money from the Federal Reserve to prop up their mistakes. Capitalism once more.