Posted on 02/06/2002 4:39:25 PM PST by agitator
This week on The Agitator Hour, heard Wednesdays at 9pm Eastern/6pm Pacific the guest is Mr. Bernard von NotHaus Chief Economist of the National Organization for the Repeal of the FEDeral Reserve Act and the Internal Revenue Code.
NORFED, the National Organization for the Repeal of the FEDeral Reserve Act and the Internal Revenue Code, is a supporter-based nonprofit organization dedicated to using all its revenue to restore a honest monetary system for all Americans, as required by our Constitution. It is governed by a Board of Directors and a Supporters Advisory Council. NORFED solicits your support to effect a change to our nation's monetary standards.
| Guest: | Mr. Mr. Bernard von NotHaus |
| Date: | Feb. 6, 2002 |
| Showtime: | 9pm EST / 6pm PST |
| Where: | The Agitator Hour - Click here to Listen Live at 9pm |
The toll-free call-in line is 1-800-478-7780
I don't like any of the schemes, I'd rather see all notes be private and be based on actual inventory someplace, so it's impossible to inflate it's worth, and with the government using gold for it's dealings with other nations if and when the private notes were not sufficient.
I like the idea of a tangible backed currency, I just don't think it shouild be based on one "thing" like gold. I'd like to see a top 100 commodities based note, for instance. And COMPLETELY remove future-credit as a tangible asset that can be called "money" especially by government. And restrict usury to one step removed, then it has to sit., and remain until paid non-transferrable except as inheritance...
That is about as far from fact as is possible. I believe there was once interest accruing currency in this country, but the last of that sort was likely issued by the Continental Congress.
Interest is paid on debt, and currency isn't debt. It is a small fraction of the American money supply, which in its broadest measure includes Treasury Bills, Bonds, and Notes. Those are part of the National Debt, and on those we pay interest. But not on currency. Currency doesn't even get what is called a seignorage fee. Even if we did pay interest on currency, which we don't, it wouldn't add up to a fraction of what we pay on Treasury paper, which dwarfs the amount of the money supply held as cash. Currency is also dwarfed by the amount of money held as simple bank balances, bookkeeping entries.
Learning to read the Ms published weekly in Barron's and other financial journals would quickly dispel the idea that currency is a major factor in the economy. Currency is only that part of money which people want to hold for current usage- it is much smaller than what people hold as savings, which they keep as book entries- or specie if they buy bullion.
If you don't like paying interest, tell Congress to start paying down the debt. That's where interest is paid. Not on currency.
The Fed earns its money on its supply of Treasury bonds. It buys and sells them in Open Market transactions, primarily to influence the base money available to local banks for the purpose of creating loans. Any proceeds in excess of the payroll for the Fed employees reverts to the Treasury. The Fed is not "owned" by its member banks, despite all the nonsense that we see claiming this. It was created by an Act of Congress to legalize and control the Clearinghouse System that the big private banks were using to prop up the banking system during crises like the Panic of 1907. The banking system is actually less privately controlled now than it was before the Fed.
The real creators of money in the American economy are the loan officers at banks. Local banks create credit when you apply for a loan, and this credit creation is in effect new money. Banks are limited in the amount of credit they can create by their reserve balances they have with the Fed, and by whatever percentage of deposits the Fed requires for backing those loans.
Don't make me pull out the Doctor Evil pictures again. Scott.
Yes it is true. The government only pays hundreds of billions of dollars in interest, much to the Federal Reserve who returns only about $20 billion to the US Treasury each year. That money pays ALL the expenses of the Federal Reserve, which has accumulated property of worth roughly half a trillion dollars. Our government completely subsidies the banking system, and the Federal Reserve has zero incentives to reduce their cost of operations.
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