A real Fix in the Banking Industry

Thomas G. Brown

We have one last chance to stop the Restoring American Financial Stability Act of 2010 which just passed the Senate on Thursday the 20th of March by a vote of 59 to 30. This bill will do nothing except allow the Federal Reserve to have more power to print money and give it to banks but also to regulate non-banking financial institutions and break them up if they are deemed a threat. This is confirmed by a quote from a May 20th article in the Economist.

If we want real reform that will prevent the market bubbles and huge crashes there is are a few simple solutions. One would be to first pass the H.R, 1207 Federal Reserve Transparency Act of 2009 . This is the bill by Congressman R-TX 14th District. which is a real audit and not the watered down version that was passed in the Senate. This will put all the backroom deals out in the open and show once and for all that the Federal Reserve only looks out for large banking interest which has a license to steal from the American public.

Once this bill is enacted and we see the malfeasance going on we can take the next step of shutting it down and getting the control of monetary policy back in the hands of the people via the Congress. Then and only then can we get back to a constitutional monetary system backed by silver and/or gold. These powers are spelled out in Article I section 8 & 10 in the US Constitution. I money was backed by gold/silver money could not just be expanded at the flip of a switch. This simple act would have numerous benefits. Cheif would have an easier time saving for retirement. No longer would you have to enter into the stock market and risk your savings on companies and funds that you have only the word of the investment package and rating agencies to go on in terms of it’s risk. You could save your money with little fear of inflation driven devaluation.

When money is tied to a commodity you also make your elected officials work in a fiscally responsible manner. This is due to the fact that they can not just go to the Central Bank and ask them to print more money so that they can pay for legislation and tax folks via inflation. Instead the lawmaker has to ask the American people directly to foot the bill in the form a new taxes. Now we all no what happens when new taxes are discussed by an elected official. They lose their job!

Credit creation i.e. the lending of money to folks would be better managed and less folks would be in debt if we had a true gold standard again. Credit would only be offered to those who could pay for it and the market would dictate the terms of interest. Never again would we have ultra low interest rates that make it more attractive to borrow fund to pay for a house or car instead of saving for these items. Also the value of the money you save in a commodity based monetary system would not be subject to the thief by inflation that currently goes on with our fiat system.

A sound money system is our first step in turning the country around an getting back to a great economic power.

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