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| U.S. Banking system | |
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| Tweet Topic Started: Jun 2 2009, 09:11 AM (315 Views) | |
| HoosierLars | Jun 2 2009, 09:11 AM Post #1 |
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We've had active debates regarding our practice of having people deposit money in a bank, and then allowing the money to be lent out with interest being paid. I believe this is arguably the key to the success of our economy the last 100 years. Although there is no working example of a system where zero interest is paid, or savers need to actually pay money for the bank to hold their money, the Islamic system is considered pretty close by many: http://en.wikipedia.org/wiki/Full-reserve_banking "In theory, Islamic banking is often synonymous with full-reserve banking, with banks achieving a 100% reserve ratio.[22][23] In practice, however, this is not the case, and no examples of 100 per cent reserve banking are observed." The main flaw with our system is the potential for bank runs. Since most of the money people deposit with the bank is lent out to others, it simply isn't possible fore everyone to get their money back at once. A key reason for the creation of the Federal Reserve was to have an institution backed by the U.S. government, capable of eliminating bank runs. I believe that we will eventually learn that we were teetering on the verge of a world-wide bank run last fall, and it had the potential to blow up our financial system. I believe the potential is still there because the depth of the MBS problems still aren't fully understood. |
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| troubleatiu | Jun 2 2009, 07:23 PM Post #2 |
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"A key reason for the creation of the Federal Reserve was to have an institution backed by the U.S. government, capable of eliminating bank runs."-lars the federal reserve wasnt created with the best interests of the american people in mind. its not even an agency of the federal government. its a cartel of private banks; designed to make the bankers rich. period. look up the members of the federal reserve. you wont find anything connected to government. all youll find is private banks. banks who make money on every dollar put into circulation. it is no coincidence that the fed was created in 1913, and only 3 years later the 16th amendment was passed (income tax) so paying the interest due the fed on our money could be passed on to the american people. the "lender of last resort" is a term that only came into being a relatively short time ago. that makes them sound important, vital, and working in our interests. no single entity has done more damage to the american economy since its inception than the federal reserve has. the fed is not backed by the US government, the fed runs the government. |
![]() "The illegal we do immediately. The unconstitutional takes a little longer."--Henry Kissinger "What luck for rulers that men do not think."- Adolph Hitler "Terrorists don't want your freedoms--they want your life. It's dictators and tyrants who want your freedoms."-author unidentified | |
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| thePhilosopher | Jun 2 2009, 07:59 PM Post #3 |
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Amen, trouble :cheers: The Federal Reserve would be in so much trouble if 1) we had a media that cared about finding a real explanation for the economic downturn and 2) we had a population that wasn't completely obsessed with pop culture nonsense. They would never get away with what they do if people actually knew what the truth was, and the role the Fed has played in creating this bubble/burst consumer economy that they now claim they can fix. They're the problem, not the solution! |
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| HoosierLars | Jun 2 2009, 08:36 PM Post #4 |
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Idiot. The Fed was started to reduce and hopefully eliminate bank runs. http://en.wikipedia.org/wiki/Federal_Reserve#Purpose Our savings and loan banking system has been the key engine behind our economic growth the last century. |
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| thePhilosopher | Jun 2 2009, 09:00 PM Post #5 |
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Look out, Lars is busting out the wikipedia to teach trouble a lesson! ;) |
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| HoosierLars | Jun 2 2009, 09:09 PM Post #6 |
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Trouble: "it is no coincidence that the fed was created in 1913, and only 3 years later the 16th amendment was passed (income tax) so paying the interest due the fed on our money could be passed on to the american people." That was one of the most ignorant statements I've seen on this board, right up there with water-gas and some of NLA's posts. |
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| thePhilosopher | Jun 2 2009, 09:18 PM Post #7 |
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Do you have anything to discredit his view, other than to call him an idiot or his statements ignorant? The stated purpose of the Fed was to not only to end bank runs, but also to generally stabilize the US economy. However, they have only made the boom/bust cycle more pronounced. You have said the recessions pre-Fed were more severe. I have to beg to differ. The Great Depression was the worst in American history, which was enabled by the Fed's actions. Ditto with the dot com bubble and the housing bubble. And even if you're right on all things Fed, we are dealing with a number of problems that we are facing (extreme debt, out of control spending) are a direct result of fiat currency and the Fed's actions. We have benefited greatly from the system short term, and being the reserve currency of the world has certainly helped. But we have squandered it all on our empire and our ever expanding domestic programs. The world won't put up with it for much longer, and we're really in for a world of hurt when something better comes along in terms of currency. |
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| HoosierLars | Jun 2 2009, 09:48 PM Post #8 |
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First of all, the first income tax was started in 1862 to fund the war. It was increased in 1916 to fund WWI. It's really ignorant to connect the dots to advance a faulty argument. |
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| Mr Gray | Jun 2 2009, 09:48 PM Post #9 |
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damnit.....next time you get anywhere near Fort Wayne, I just have to show you the water-gas test that we rigged up. It worked, and it is very freakin cool. Hydrogen from water has a ton of potential outside of just the hillbilly car experiment that I pulled off. Wind & solar power conversion is the greatest example. These energies are limited by the ability for the power to be stored up in batteries during excess times so it can be used during deficit times (no wind or sun). When these energies are converted to hydrogen, however, they are over 99% efficient in storing the energy. I am rigging up a solar panel to a hydrogen converter, which will store the gas in a large tank. This tank is then going to be rigged up to my furnace in the barn. If it works, my bard will bge 70 in the winter and have almost no cost associated. |
![]() The body knows what fighters don't: how to protect itself. A neck can only twist so far. Twist it just a hair more and the body says, "Hey, I'll take it from here because you obviously don't know what you're doing... Lie down now, rest, and we'll talk about this when you regain your senses." It's called the knockout mechanism. | |
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| thePhilosopher | Jun 2 2009, 10:03 PM Post #10 |
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"First of all, the first income tax was started in 1862 to fund the war. It was increased in 1916 to fund WWI. It's really ignorant to connect the dots to advance a faulty argument." There we go... now you're making a point. The income tax of 1862 expired about a decade after the Civil War was over. So that seems to be an isolated incident of taxation, rather than a product of our system. And not until 1913 (the same year of the Federal Reserve Act), did we have a constitutional amendment that created an income tax for good. I have recently come across the "Grace Commission Report," which was submitted to Reagan in 1984. It said basically that all of the income tax goes off to paying the interest on the debt that is created/enabled by the Federal Reserve system. Have you or anyone else heard of this report? Furthermore, have you seen Freedom to Fascism, Lars? |
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| brumdog44 | Jun 2 2009, 10:09 PM Post #11 |
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I was about to bring up Freedom to Fascism, phil. |
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| thePhilosopher | Jun 2 2009, 10:15 PM Post #12 |
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:cheers: There's an Alex Jones interview of Aaron Russo floating around the internet. It was the last major interview he did before he passed away. Russo is a true patriot, and while some of the things he talks about is a little "out there" for some (implanted chips, for example), he really did some good work with Freedom to Fascism. |
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| HoosierLars | Jun 2 2009, 10:19 PM Post #13 |
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Aaron, creating hydrogen from water using a solar panel is based on solid science. Creating hydrogen gas using the car electrical system is not, because you will always spend more energy than you get back from the hydrogen. When I say "water-gas" I'm referring to the fraudulent adds saying you can increase your gas mileage by utilizing electricity created by the car generator. |
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| HoosierLars | Jun 2 2009, 10:30 PM Post #14 |
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Phil, we can play the "cause and effect" game all day. I contend that our monetary problems were the direct result of the Wright brothers learning to fly, and Edison inventing the light bulb. Trouble was wrong about the start of the income tax, and the fact that it was increased in 1916. (restarted in 1913 like you said) It doesn't take an esteemed historian to know the main reason for the 1916 increase was to fund WWI. The debt is caused by big spending by our government, mainly to finance wars, and entitlement spending. I may have seen "Freedom to Fascism" on youtube. What's its thesis? I totally agree with you that the Federal Reserve shouldn't have the ability to print money at will, and needs to be held accountable. I know it won't happen on The Messiah's watch because he wants to socialize as much of our life as possible. |
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| thePhilosopher | Jun 2 2009, 10:41 PM Post #15 |
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The main idea in Freedom to Fascism is the illegitimacy of the federal income tax, as well as the Federal Reserve system. Its certainly worth a watch. Its been a while since I've seen it, and I might watch it again tomorrow. |
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