Lehman Brothers is going bankrupt. Bear Sterns folded a few months ago. What’s next? Where does it all stop? To me, a buyout of the Federal Reserve would be the best answer. If the U.S. government would buy out the Federal Reserve with and new U.S. dollar, debt and interest free, all our problems of mortgages, war, poverty would all be resolved. How? Eliminate usury.
Usury is the act of lending money with interest. The best example is the United States Government paying interest on its loans from the Federal Reserve Bank. Why is that? Don’t we have our own administrators clever enough to oversee the expansion and contraction of the flow of currency? When we buy the Federal Reserve we could hire the sincere and honest ones as administrators of the US money.
Money is a commodity. Today it is a legally established paper or electronic commodity, not based on gold or silver. It is used as an exchangeable equivalent of all other commodities and is used as a measure of their comparative values. When we borrow money, its our ‘promise to pay’ that is a negotiable security!
Now, no matter what interest rate is charged for borrowed money there inevitably has to be inflation and bankruptcy. The United States Congress could pass a law to create a new U.S. currency that buys up all the Federal Reserve Notes. The new currency would/could be collateralized with the promise to pay with food, especially grain.
Isn’t that a great idea?