Situation B would be like Canada. The Bank of Canada owned and controlled by the government. No interest payments to a third party on every dollar put into circulation. Would save the U.S. trillions of dollars, or at the very least shift those trillions of dollars into the hands of the U.S. government rather than private business.
Trump in 2020?
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What is an interest payment to third parties? And why do you believe interest payments are made to anyone once money is put into circulation? Interest, to me anyways, implies debt but you're saying interest is paid when money is put into circulation?Situation B would be like Canada. The Bank of Canada owned and controlled by the government. No interest payments to a third party on every dollar put into circulation. Would save the U.S. trillions of dollars, or at the very least shift those trillions of dollars into the hands of the U.S. government rather than private business.
I would suggest you learn about the US Federal Reserve System. I will agree the with you that the Regional Reserve Banks in the US are privately owned. They are actually owned by banks, about 40% of the banks in the US collectively own the 13 or 14 Regional Reserve Banks. However; owning shares in a Regional Reserve Bank is not like owning a shares in, let's say Apple. Regional Reserve Bank shares cannot be transferred, assigned or sold. Also, the entire Fed Reserve System is controlled by a Board of Governors controlled by the US Government.Situation B would be like Canada. The Bank of Canada owned and controlled by the government. No interest payments to a third party on every dollar put into circulation. Would save the U.S. trillions of dollars, or at the very least shift those trillions of dollars into the hands of the U.S. government rather than private business.
Now let's talk profits. Each of the banks that own the Regional Reserve Banks put up their money. In fact; to own shares in a Regional Reserve Bank, a shareholder needs to put up something like 4% of its own combined capital. And for that, the shareholder is entitled to a 6% dividend. For example, if Goldman Sachs total combined capital is $100 billion, Goldman would put up $4 billion of its own capital to get shares in the Regional Reserve Bank. And that entitles them to a dividend of $240 million. Yes that sounds like a large dividend, but they put in $4 billion to start. Profits of the Reserve Banks then go to the federal government. In 2015 the Reserve Banks made $100 billion in profit, about $3 billion was paid out in dividends and $97 billion was transferred to the Federal Government.
So basically; private enterprises (i.e. banks) put up the money to get the Reserve System up and running, the Government controls the Reserve System, and the Government gets a very big chunk of the profits generated by the Reserve System. Basically, it's like you putting up all the money for me to start a business, you own all the shares, you cannot sell the shares, I control the business, you get 6% return on your investment and I keep all the profits. Sweet deal for me!
And the Canadian central bank system is almost identical to the US. We just structured it differently in that we do not at the outset require private investment into our reserve system. We used the granting of Schedule 1 licenses to make the large banks comply with the Government's requests when it comes to moving liquidity in and out of the system.
Yes and no. There is the Board of Governors. Again, they are private, not government. The government is involved in the decision of who is on the board, but not just anyone can sit on the board. The banks (and individuals) that control (own) the reserve have put up "their" own money sort of. It's not just their money, but also money from deposits of U.S. citizens. When money is put in circulation by the Fed ( at the request of the U.S. government) there is an "interest" fee attached to every single U.S. dollar (it's really Federal Reserve currency, not U.S. government currency, technically the U.S. does not have it's own currency. It uses currency supplied by the Fed; a privately held third party. So what happens is for every dollar printed/ put in circulation the U.S. government has a repayment to the Fed of $1 +. Is the Fed taxed on this? Sure, but nowhere near what they bring in.I would suggest you learn about the US Federal Reserve System. I will agree the with you that the Regional Reserve Banks in the US are privately owned. They are actually owned by banks, about 40% of the banks in the US collectively own the 13 or 14 Regional Reserve Banks. However; owning shares in a Regional Reserve Bank is not like owning a shares in, let's say Apple. Regional Reserve Bank shares cannot be transferred, assigned or sold. Also, the entire Fed Reserve System is controlled by a Board of Governors controlled by the US Government.
Now let's talk profits. Each of the banks that own the Regional Reserve Banks put up their money. In fact; to own shares in a Regional Reserve Bank, a shareholder needs to put up something like 4% of its own combined capital. And for that, the shareholder is entitled to a 6% dividend. For example, if Goldman Sachs total combined capital is $100 billion, Goldman would put up $4 billion of its own capital to get shares in the Regional Reserve Bank. And that entitles them to a dividend of $240 million. Yes that sounds like a large dividend, but they put in $4 billion to start. Profits of the Reserve Banks then go to the federal government. In 2015 the Reserve Banks made $100 billion in profit, about $3 billion was paid out in dividends and $97 billion was transferred to the Federal Government.
So basically; private enterprises (i.e. banks) put up the money to get the Reserve System up and running, the Government controls the Reserve System, and the Government gets a very big chunk of the profits generated by the Reserve System. Basically, it's like you putting up all the money for me to start a business, you own all the shares, you cannot sell the shares, I control the business, you get 6% return on your investment and I keep all the profits. Sweet deal for me!
And the Canadian central bank system is almost identical to the US. We just structured it differently in that we do not at the outset require private investment into our reserve system. We used the granting of Schedule 1 licenses to make the large banks comply with the Government's requests when it comes to moving liquidity in and out of the system.
There are great documentaries out there on this. Several U.S. presidents have tried to remove this private control of the banking system and put it back in the hands of the government. Why would they bother, if the Fed wasn't raking it in hand over fist?
At least this is my understanding based on everything I have read on the system.
The Reserve System doesn't even print money. The US Treasury Department prints money and mints coins. The Reserve System doesn't "take a cut" of money printed or coins minted. Sorry mate; but money is "created" more often than not by our system of banking and not necessarily by money being printed or coins minted. Learn about target reserve ratio banking and you'll maybe get an idea of how money is "created".Yes and no. There is the Board of Governors. Again, they are private, not government. The government is involved in the decision of who is on the board, but not just anyone can sit on the board. The banks (and individuals) that control (own) the reserve have put up "their" own money sort of. It's not just their money, but also money from deposits of U.S. citizens. When money is put in circulation by the Fed ( at the request of the U.S. government) there is an "interest" fee attached to every single U.S. dollar (it's really Federal Reserve currency, not U.S. government currency, technically the U.S. does not have it's own currency. It uses currency supplied by the Fed; a privately held third party. So what happens is for every dollar printed/ put in circulation the U.S. government has a repayment to the Fed of $1 +. Is the Fed taxed on this? Sure, but nowhere near what they bring in.
There are great documentaries out there on this. Several U.S. presidents have tried to remove this private control of the banking system and put it back in the hands of the government. Why would they bother, if the Fed wasn't raking it in hand over fist?
At least this is my understanding based on everything I have read on the system.
Going to take an awful crisis for Donald Trump to "end the Fed". Trump could take a lower profile dealing with the U.S. Federal Reserve and create a floating interest rate environment and peg the currency. That would effectively relieve the Fed of its 2 principal tools, setting interest rates and buying U.S. treasuries from the U.S. government. The Swiss based Bank of International Settlements (BIS) recently designated gold as money that looks like a good move toward sound money policies that could end fiat to base currencies against gold. China and Russia have been buying lots of gold seemingly in anticipation of such an event. I would expect floating interest rates would force banks to better assess borrower's status and better control the corporate buy-backs of its own shares that has been fraudulently keeping share price up while earnings decrease. Before 1971, currency was pegged to gold, government would buy and sell its own currency to keep the peg in place. Finances hummed along just fine.
Bitcoin has not been devalued for the last 100 plus years like the U.S. dollar. And it doesn’t have to deal with any governments.If the "truth" is well hidden by the DC elite; how did you uncover this well hidden "truth"? And if the main issue with fiat currency is that it is not backed by a hard asset, what is the benefit of backing it with crypto, which is also not backed by a hard asset. Although I am no expert on crypto; Bitcoins and the like are not backed by a hard assets either.
You are very naive if you don’t think that DC isn’t shrouded in secrecy.
A dollar today is worth more than a dollar tomorrow. Inflation or devaluation? Just a difference in perspective I guess. And Bitcoin has only been around for a relatively short amount of time, what it may or may not be worth in 100 years doesn't answer why a currency should be backed by it. If you believe it is more stable than fiat currency, one simply need only look at the changes in value of the dollar vs Bitcoin to determine which is more stable. In any event; why is Bitcoin a more appropriate commodity/asset to back a currency with?Bitcoin has not been devalued for the last 100 plus years like the U.S. dollar. And it doesn’t have to deal with any governments.
You are very naive if you don’t think that DC isn’t shrouded in secrecy.
And I do not doubt there is many things that go on in DC that I am not privy to. But again, why are we to believe you are privy to them?
I believe most people who have gripes with currency is that there is an underlying belief that currency has to store value. Currency, as I see, is merely a medium of exchange. Yes it's value fluctuates, ergo the old saying "a dollar today is worth more than a dollar tomorrow'. However; I do not see currency as a store of value: which some, such as yourself, seem to want currency to be, what with your assertion of devaluation. If you want to transact for goods and services, use whatever currency you want. As long as the other transacting party agrees you can use dollars, Bitcoins, blowjobs, whatever. If you want to store value, there is much better options than storing value in cash. Many people store value in stocks, bonds, real estate, precious gems and even Bitcoin. The point is; medium of exchange and store of value are wildly different things. In my opinion; Bitcoin is not a good large scale medium of exchange. Many crypto supporters seem to think it's the future of currency, which may come to fruition or not. But as I see it; crypto behaves more as a store of value, an investment - and a highly speculative one at that. Just my opinion though - in fact, sometimes it's fun to make speculative investments!Bitcoin has not been devalued for the last 100 plus years like the U.S. dollar. And it doesn’t have to deal with any governments.
You are very naive if you don’t think that DC isn’t shrouded in secrecy.
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