How to End the Fed - Mises Institute
Posted by freedomforall 3 weeks, 4 days ago to Economics
Excerpt:
"The How
You may read through my proposed plan and disagree with me on the details. But we must agree on this point: The key objective is to minimize any fluctuations in the current money supply as best we can. This can be done in a delicate manner that might even go unnoticed by the market, outlined in 5 steps:
Revoke All Federal Reserve Monetary Policy Privileges
The Federal Reserve should no longer have the ability to directly manipulate the money supply. Repeal the Federal Reserve Act.
Lock Down All Debt Assets on the Federal Reserve Balance Sheet
This refers to all assets on the balance sheet with a contractual expiration, such as US Treasuries, mortgage-backed securities, and other loan types. These assets make up roughly 99 percent of the Fed’s balance sheet. Rather than selling them, they should be allowed to expire naturally over the next 30 years—the longest duration of USTs and MBSs. During this period, the Fed may still collect interest payments on these assets and reinvest them to prevent removing those funds from the monetary base.
Gradually Sell Off Non-Expiring Assets
Any assets on the Federal Reserve’s balance sheet that lack a contractual expiration should be sold off gradually over a period of 1 to 5 years. At present, I have been unable to find a reliable estimate of how much of this asset type exists, but I suspect it is relatively small—possibly less than a billion dollars.
The Federal Reserve Becomes a True Private Institution with No Special Legal Privileges
The Federal Reserve should operate as a fully private institution, stripped of any special legal banking privileges. Its only remaining advantages would be its established market position, its role in facilitating bank-to-bank lending, the interest payments from existing assets on its books, and its historical significance. This is far more than it deserves, but the primary objective must be to dismantle its power without triggering economic catastrophe.
If the Federal Reserve Cannot Function as a Private Bank
If the Federal Reserve fails to maintain its market position—which is likely, given that it has never truly faced competition—then major banks will need to determine among themselves how to facilitate interbank lending. They may assign central banking functions to other private institutions, operating within the limits of private banking law. Alternatively, the market may simply deem the Federal Reserve obsolete, allowing it to wither away naturally. Either outcome would be entirely acceptable."
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Unless I have missed it, I don't see how this "solution" ends the banking cartel's free credit creation for profit that steals from everyone else. Does it?
"The How
You may read through my proposed plan and disagree with me on the details. But we must agree on this point: The key objective is to minimize any fluctuations in the current money supply as best we can. This can be done in a delicate manner that might even go unnoticed by the market, outlined in 5 steps:
Revoke All Federal Reserve Monetary Policy Privileges
The Federal Reserve should no longer have the ability to directly manipulate the money supply. Repeal the Federal Reserve Act.
Lock Down All Debt Assets on the Federal Reserve Balance Sheet
This refers to all assets on the balance sheet with a contractual expiration, such as US Treasuries, mortgage-backed securities, and other loan types. These assets make up roughly 99 percent of the Fed’s balance sheet. Rather than selling them, they should be allowed to expire naturally over the next 30 years—the longest duration of USTs and MBSs. During this period, the Fed may still collect interest payments on these assets and reinvest them to prevent removing those funds from the monetary base.
Gradually Sell Off Non-Expiring Assets
Any assets on the Federal Reserve’s balance sheet that lack a contractual expiration should be sold off gradually over a period of 1 to 5 years. At present, I have been unable to find a reliable estimate of how much of this asset type exists, but I suspect it is relatively small—possibly less than a billion dollars.
The Federal Reserve Becomes a True Private Institution with No Special Legal Privileges
The Federal Reserve should operate as a fully private institution, stripped of any special legal banking privileges. Its only remaining advantages would be its established market position, its role in facilitating bank-to-bank lending, the interest payments from existing assets on its books, and its historical significance. This is far more than it deserves, but the primary objective must be to dismantle its power without triggering economic catastrophe.
If the Federal Reserve Cannot Function as a Private Bank
If the Federal Reserve fails to maintain its market position—which is likely, given that it has never truly faced competition—then major banks will need to determine among themselves how to facilitate interbank lending. They may assign central banking functions to other private institutions, operating within the limits of private banking law. Alternatively, the market may simply deem the Federal Reserve obsolete, allowing it to wither away naturally. Either outcome would be entirely acceptable."
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Unless I have missed it, I don't see how this "solution" ends the banking cartel's free credit creation for profit that steals from everyone else. Does it?
SOURCE URL: https://mises.org/mises-wire/how-end-fed
An idea, along with tariff, to fund Gov expenses.
One item that needs to be compulsory: All land property is to be of Allodial Title. Another; eliminate the Corporation.
I expect the "banking cartel" won't give up.