I've been thinking about what our financial situation would look like if we took Ron Paul's route and put an end to centralized banking. But, what would happen afterwards? I understand that a transition would be required but to what extent? If we began phasing out the Fed while investing in a commodity like gold/silver all the while allowing consumers to choose between multiple currencies of their choice, then how could businesses begin to accept multiple forms of payment? Whether it's the Euro or bank issued notes, I believe it would be disastrous at this point because the US economy is so dependent on a single currency. I thought about this the other day at work, when someone paid with cash and a debit card for one total. The cashier has to enter in the total amount of cash on hand, then slide the card for the remaining balance. But, what if that customer paid with Yen's and Euro's? Bank issued notes? Would it be as simple as this scene, or be more of a complex hassle for her and the banks? It seems like it would benefit the economy in the long run and help strengthen the dollar by competition. But, it would just be such a hassle at this point. When the U.S. did not have a central bank, many local banks would fail and their money that people carried around became useless paper. I think in order for that to not happen again, the treasury should take control of the entire money supply that is backed by commodity. If the money supply is bound to something, than there is not much room for inflating the Dollar and manipulation that we see nowadays. With total transparency with the people, I don't think this would be a bad idea. This is just my opinion. I want to discuss this and hear other peoples views for I don't believe mine is perfect. But, I am in no way a fan of centralized banks. I know my scenario is not much different than what we have today (get rid of the Fed and give all power back to the treasury), but at least we wouldn't be in an endless debt circle...and that is what worries me.
Your solution is not better in any way. Instead of the Fed printing money the Treasury would do it. There is nothing crazy about competing currencies. Stores would be free to accept or deny any currencies they chose. If they wanted to only take Fed notes they could do that, but they would lose a lot of business because of all the people who would be using real money (gold and silver). I like Ron Paul's plan much better than yours. Money and government need to be completely separated. The free market can handle it just fine. People are simply conditioned to think it can't work any other way because the state has been in control for so long. If the state had a total monopoly on cell phones, and Ron Paul wanted to let private companies take over making cell phones, you would have the same objection to it. You would say "I don't see how we can have so many competing companies all making cell phones, it will cause so much confusion."
I think this country was fine during the 140+ years without the fed. Now would be the perfect time to restart. The economy is already shit, that is when you fix the system. Competitive currencies are good, so is bartering. Small banks were failing because they were loaning out more money then they had in assets, which leads to loaning more money then you have and if enough of those loans were bad, the bank crashed. Why would you want to just let the fucked up system last of it is complete disaster. Why keep it if it is just convenient now, what happened 5 years from now and we are even worse, do we continue done the path of failure because it was convenient at the moment.
I was about to call bullshit on your cell phone example, but I thought about it for a minute. I'm under the impression that there should be a universal form of currency, not a bunch of random bills and coins going around. You're right though, the decision to accept any form of payment should be left up to the business owner and the decision to pay with whatever for whatever is left up to the individual. In a free market and free society, nothing can be repressed - people have a choice to make and the choice should be all theirs. Government should set the stage, Not call the shots. Thanks for your input, man.
America was fine before the Feds was signed into the law. If we abolished it, it would be a great day for Americans. This is what we have to do. Each of us, individually, have to truly begin to care about what happens to others in our community. A hand there, give a chance there. Buy your veggies from the local fruit stand. Buy your chicken / beef from the local farmer. Keep your money in your community. Until we understand that we have to fix our local economies and stop waiting for the government / feds / Jesus / whoever to fix it, things will only improve at a glacial pace. Because, despite what media would have you believe, the president doesn't have dick to do with it. We have to do this ourselves, and we have to start with what we can see. This is where our generation(s) define ourselves. This is were we show that we can progress / preserve our society. Right now. In this moment. Stop talking about how to fix the economy. Start doing what you can and trust that the others around you will follow your lead. It's all you can really do.
[ame=http://www.youtube.com/watch?v=h_RK6XTn3K4]DMP Eurozone Bailout Hearing - Ron Paul Sums Up the Debt Crisis Well at the End - YouTube[/ame] [ame]www.youtube.com/watch?v=Ix4Dv29tpK0[/ame]