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The Fed doesn’t coin money nor does it make loans to the government.
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Pray tell, just what DOES it do? Aside from generating 0s/1s and...charging interest (aka loan)
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The Constitution is silent on paper money and credit, which banks have had the right to create since day one.
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Incorrect on the 1st part, it states EXPLICITLY what *money* shall consist (gold and silver). That banks can set loan/savings rates (aka CONTRACTS) is not in dispute...they CANNOT ‘create’ money.
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The government borrows money from investors. The Fed is not an investment bank and any earnings the Fed has go to the Treasury.
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I fail to read of the Fed.Res in my copy of the Constitution. Maybe you can point out where Congress was given this great ‘latitude’
I do note an A1S8, 5th, 9th, 10th & 13th that specifically states (economic) slavery is verboten (aka ‘borrowing’ to spend on any # of illegal, unconst. program/dept/agencies/edicts/’wants’...).
Coining money is just that. Coinage. That’s all that the Constitution reserves for the government.
The Bank of North America was a private bank chartered by Congress in 1782. The Articles of Confederation Congress. It printed and coined its own money.
When the Constitution was ratified seven years later only coinage was prohibited. Bank of North America could still print money, and so could other private banks.
Banks from 1789 right up to 1913 often printed their own currency. Google National Bank Notes and you’ll see plenty of it.
Banks still have the right to print their own currency, but they don’t because they can create money via checkbook entry.
“Incorrect on the 1st part, it states EXPLICITLY what *money* shall consist (gold and silver). That banks can set loan/savings rates (aka CONTRACTS) is not in dispute...they CANNOT ‘create’ money.”
Well you’re completely mistaken on that. Banks have always had the right to create “credit money” aka “bank money”. It’s the very definition of banking. Plow through Ludwig von Mises’ 1912 “The Theory of Money and Credit” if you want to read an authority on the subject. It’s very dull reading but you’ll learn about the history of money and banking, including that of America.
“I fail to read of the Fed.Res in my copy of the Constitution. Maybe you can point out where Congress was given this great ‘latitude’”
As was mentioned before the Constitution is silent on banking and paper money. And that’s what the Fed deals in. Congress has the ability to legislate banking. It began doing so in 1782.