Get serious. These are not practical ideas. They are crackpot ideas.
Take, for example, #3b. Every bank borrows short (i.e. takes deposits) and lends long (i.e. mortgages). How else do you expect loans to be funded? How many people are going to walk down the bank and put their money in a 30-year CD? - ZERO. How many people can afford a 30-day mortgage? - ZERO.
And #2. There is not enough gold in Fort Knox to replace a fraction of the USD $ in circulation. There is not enough gold in the world to replace a fraction of the euros, yuan, swiss francs, US dollars, etc in circulation. The world has grown beyond gold.
You might as well say we should all use anti-gravity.
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Originally Posted by competentone
Your solution sounds pretty "tyrannical."
I have a much simpler one:
1. Eliminate the Federal Reserve.
2. Exchange all the Federal Reserve Notes outstanding for the gold and silver the Treasury (hopefully) has in Fort Knox.
3a. Make it a capital crime for any banker to engage in fractional reserve banking against demand deposits. 3b. And along with that, have stiff jail sentences for any banker who does not match his lending with his borrowing -- meaning, no more borrowing (from depositors) using short-term instruments (like 6-month CDs) and lending out that money long term (like for 30-year mortgages).
Do those simple things, then let a free, unregulated market, take care of the rest.
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