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Ward Williams

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Is the Federal Reserve a false necessity, created to redistribute wealth from bottom to top?

The United States no longer uses the gold standard as backing for it's monetary system. Instead our money is created by fiat, that is, the Federal Reserve simply says it exists. The Federal Reserve, which is not a government entity loans us the money and we pay it back with interest. As a middle man isn't it in the Federal Reserve's interest to loan us as much money as it can? Given the obvious incestuous relationships between money and power in Washington, is it equally beneficial for Washington to concoct reasons for the government to need money?

I don't really have a problem with fiat money since anything will assume whatever value we place on it, but why are we paying a middle man to fabricate it from thin air? Why are we borrowing money from someone else when we could borrow the money from ourselves, much as borrowing from a 401k. We borrow from ourselves and pay ourselves back, with the same interest. That interest would then become income, rather than expense. Given that fiat money is imaginary, isn't then the debt imaginary too?

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    Feb 19 2013: The most prosperous times in our (USA) history are when government itself printed fiat money. It did not "borrow" the money from itself. It used its constitutional authority to print it. But I fear, that because of the disparity of wealth, and the globally-based economy, combined with inadequately educated Americans and openly corrupted elected representatives who are elected year-after-year, this option is no longer available to us.

    When congress gives itself the right to employ insider trading (make investments based on legislation that is expected to come to the floor and pass - before anyone else knows about it other than the businesses it expects to help), extortion (withholding legislation unless campaign donations are made), embezzlement (through ear marks that serve personal interests), bribery (allowing lobbyists to write legislation in exchange for campaign donations), and similar PROVEN corruptions, we can fix the "value of money" problem, but not the problem itself.

    Add to that the disparity of wealth problem that has already destroyed our ability to keep our US economy intact (thanks to the corruptions already mentioned). The collapse appears inevitable.

    Yes, money is imaginary. So is the interest on the debt - that is never printed - always owed, so that by now, there is no paying back the debt - ever. The scheme was a good one for those who designed it - made possible through a SOTUS coup d'etat as initiated by the Federalists in 1819.

    The cure is not one that Americans want to think about. They would rather face the horrible consequences rather than work in advance to design a controlled crash. You can thank our educational system for a lot of that problem.
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      Feb 19 2013: ". . . made possible through a SOTUS coup d'etat . . ." What is a SOTUS?

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