Posted on 08/01/2011 8:57:31 PM PDT by Kevmo
“Why can’t fractional reserve be taken away from the fed and deployed in the states?”
The practice already is decentralized. Fractional reserve lending is practiced by your local bank, they loan many multiples of their reserves.
The Fed’s role is to set the ratio of loans to reserves and to adjust the size of the monetary base through buying and selling Treasuries.
“Well, why don’t we and let the derivative markets take it from there?”
Derivatives have little to do with banking, they are securities or insurance.
That Argent quote is a good companion for David X Li’s Gaussian copula function, the formula that killed Wall Street and the housing market.
I guess I should have asked: why can’t we have 50 fed systems one for each state instead of one which ‘acts reservely but is several to X reserve banks’?
Somehow that line from the old made-for-TV movie "The Rough Riders" has always stuck in my mind.
Nobody in DC wants to correlate the rising debt ceiling with declining jobs.
The rising debt ceiling has two consequences....
more regulation ...
to occupy employees in expanding federal bureaucracies...which expand because “they have more money” and another layer of bureaucrats need their 20 year promotions... Each round of regulatory expansion is the effective equivalent of another targeted tax increase on the object of the regulation.
more taxes...
The rising debt ceiling has demands and expectations of creditors for new elements of “revenue raising” by the Feds...taxes or fees.
In this strangling environment job creation is simply NOT possible.
In fact the only logical conclusion..can be ..is that the Federal apparatus -initially an asset to the United States..by virtue of its abilities to raise an effective Navy in the late 1700’s, and early 1800’s to facilitate overseas trade on behalf of the States, has become nothing other than the States greatest liability at this point in time. In the absence of profound regulatory and taxation reform-which is not capable of coming from the same minds that created the problem..we may well be at the end of the line.
For DC to face this fact...means the end of the K St-Congressional Party cycle in DC-the one that keeps repeating “2.4Trillion” as their mantra.
IMHO...the only solution is a 50 state secession from DC at this point...with a completely new “Constitutional Re-Federalization”..
I’ve been wondering lately if a new invention benefits more from being able to do something better or does something in such a different way that it’s not subject to all of the burdensome regulations that drag down older ideas, such as nuclear power.
Either way, hopefully this technology can deliver a tremendous benefit before the government clamps down with a zillion new regs on it.
We’ve already experienced how transformative integrated circuits have been to society, but when you find a new technology that affects power and transportation, then you’ll see fundamental societal and political changes.
I just hope the capitalists instead of the socialists are the primary ones making the change.
What did they do?
What did they do, dis cold fusion? Probably realistic.
If we want out of the debt problem, the first step is to stop deficits. If we quit adding debt, inflation will reduce the value of the debt in a relatively small number of years.
Inventions are great but we have a debt problem, not an invention problem.
Been there. Done that. Have the patent.
There wouldn’t be any point to doing it. You would still need one overall system to connect 50 mini Feds. You need a common clearinghouse association so that banks can clear each others checks. You need a common set of operating rules and reserve requirements. You only need one lender of last resort. There already are 12 districts within the Fed structure.
They didn’t just block a thread about cold fusion (where there was some fascinating discussion about Thorium possibly being the catalyst) but they deleted it.
I’m glad I captured what I did before it went down the black hole.
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