> Not a problem - SOMEBODY will issue currency, and provided there are no > strongarm tactics used there will be many somebodies. As with everything > else, the market will sort it out after a brief reshuffle. > > Marc de Piolenc > > SnowDog wrote: > > > Q: How would you go about abolishing the Federal Reserve? Almost all USD in > > circulation are debts to the Federal Reserve. How would you replace this > > debt-backed currency with an other type?
Yes, but how would you unravel the debt? All those house mortgages? All that personal and business debt? Let's say that you privatized the Federal Reserve tomorrow, and the US Government issued another gold-backed currency, (or didn't, whatever you choose), who would continue to borrow from the Federal Reserve? -- No one! And without any additional Federal Reserve Notes coming into circulation, then their currency would deflate as people continued to pay-off their debts. In this scenario, almost all of the US debt would be unserviceable. An economic calamity of mammoth proportions would ensue because people cannot pay-off their debts in Federal Reserve Notes, in a deflationary spiral. There are not enough Federal Reserve Notes in circulation to pay-off all Federal Reserve debt. The problem does not just go away when one says, "Abolish the Fed." The Federal Reserve System will have to be unwound in much the oppsite way that it was created. The first step may be to bring it back onto a gold standard. SnowDog [Is this subject on-topic?] --- You are currently subscribed to e-gold-list as: archive@jab.org To unsubscribe send a blank email to [EMAIL PROTECTED] Did you know that e-metal is a wonderful holiday gift? Avoid the hassle this year!
