Does it make sense to have a private owned central bank?i'm a well traveled guy, and what i see in america just don't make sense. like in Japan, Malta, Peru, Britain, France, ANYWHERE, these countries have a central bank that is govt owned. Isn't it kinda dangerous to have a central bank where capitalists of foreign nationalities are making monetary policies... | |
I believe the government needs to run our monetary policy so that we can get back to a money system for the people.
As it stands now, if all of our debt was paid off, both public and private, the dollar would cease to exist. In another words, every dollar that is in circulation is 100% debt.
We have a fractional reserve system, where the FED (Federal Reserve System) loans the banks $100, then the bank trough the fractional reserve system makes money out of thin air by holding only 10% of that in reserve and creating $900 more dollars. By the time that $100 is loaned out, it can become as high as $10,000. It's all legal and a reverse pyramid that will eventually collapse.
Our money is not backed by anything tangible, it is backed with only a promise. Which has served us well over the last 5 decades, but now, under its own weight and the strength of other monies in the world, is coming undone.
There is no doubt, regardless of what this country does that we are going to go through some painful economic times, nevertheless, if our government has the will and strength to get us back to a peoples money that encourages us to save instead of spend and borrow, our country and the people here will thrive. The only difference will be, the fat cat will have to wait for their return on their investment longer, instead of instant gratification of decreased taxes and bailouts which, ultimately hurt the middle class more and decreases our real income and makes us slaves to our debt while creating things like housing bubbles.
Where I live in China, people usually do not take on the huge debt of 1% to 10% down on a home, but rather save and eventually buy a home outright. In America, because of this fractional reserve system, that has driven up the price of a home to unreasonable levels so that it is nearly impossible to save to buy a home, that one must borrow and become a slave to that system. Plus, the one thing I find totally impalpable, even when the home is paid off in America, there is property taxes that in many cases can exceed a monthly mortgage payment. In China, homeowners property taxes are very low to non existent. Think of it this way, one really does not own a home in America, one is merely renting the home under the threat if the taxes are not paid the government takes it back -- in essence, eviction.
Peace
Jim
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Sure. However, contrary to the misinformed mythology of some people in the US, we do not have a privately owned central bank. The Federal Reserve is a government agency. It is set up as a public/private partnership with a number of private banks that serve as clearing houses. But the FR is not owned by those banks.
Perhaps if those people had actually read their history or economics books in high school they'd know that.
