Trump Meeting with John Allison: Wants to abolish Federal Reserve and return to Gold Standard

[Superfluous Man]

If gold backed currencies never fail, how many of them are still in use today?

Gold-backed currency = Gold. Gold is still in use today. So 100%.

 

[Superfluous Man]

But why is it good for monetary policy to be audited in real time?

Because it's our money. We have a right to know.

If you favor ending the Fed, well this would bring it's end.

 

[Krugminator2]

Because it's our money. We have a right to know.

If you favor ending the Fed, well this would bring it's end.

I agree Constitutionally people have a right to know. It does say Congress has that authority.

I don't see it bringing an end to the Fed. I do think worse monetary policy is guaranteed.

 

[Jamesiv1]

If gold backed currencies never fail, how many of them are still in use today?

Conquest is not the same as failure.

 

[TommyJeff]

Is Allison still a contender? Any idea how many others he's competing with?

 

[Origanalist]

Is Allison still a contender? Any idea how many others he's competing with?

No, Goldman Sachs got the position.

 

[Zippyjuan]

Gold-backed currency = Gold. Gold is still in use today. So 100%.

So people take gold to the store to make purchases then.

 

[Dr.3D]

So people take gold to the store to make purchases then.

My grocer would cooperate if my purchase was big enough. I know where I can buy a hot dog with silver.

 

[oyarde]

So people take gold to the store to make purchases then.

As a purveyor of the finest goods , I will take it .

 

[unknown]

Yah ok.

 

[devil21]

And you don't want that done either.

"Minutes of their deliberations are released after the fact so you do have the ability to learn who said what. Just not at that moment."

And I am sure we can trust the Banksters to give us a truthful report when they audit themselves right?

The real story is that the Fed makes moves months in advance of any public dissemination and puts out disinfo until the moves have already been manifesting in markets. The "experts" like to call it "pricing in" but what it really is, is insiders knowing what really happened at Fed meetings and moving accordingly. The average Joe is always behind the curve because he never hears the real story until many months later. They are purveyors of fiction, thanks to complicit CNBC, Bloomberg and others. Who can honestly tell me that bond yields don't show that the Fed ALREADY hiked target rates???? They will claim that the market is "pricing in" a rate hike. The real story is that the Fed ALREADY DID IT. They just won't "announce" it for another week or two.

This is why FOMC operations are not audited and the Fed has fought so hard against that. And no verbatim transcript are ever released. Dr. Paul knows this and alluded to it! The Fed loses the element of secrecy when their operations are open and auditable. The insiders get to front-run but no one else. And that, my friends, is how you "make" all the money and maintain all the control.

 

[Legend1104]

I agree Constitutionally people have a right to know. It does say Congress has that authority.

I don't see it bringing an end to the Fed. I do think worse monetary policy is guaranteed.

Well actually monetary policy for the fed would be virtually destroyed by a 100% gold standard. The Fed has three ways to affect monetary policy:
1. Open Market operations
2. The discount window
3. Reserve ratios

1. Open Market operations is when the Fed purchases (or sells) bonds to pump money (or remove it) from the economy. It for example can buy a bond from say a bank/company/person etc. When it does it adds money to the economy, thus expanding the money supply. So with a 100% gold backed money supply Open market operations would no longer be possible.

The discount window is when they loan money to other banks and at interest. When they loan money they have to use either money out of the treasury or issue new money to do it. Since they can't create new money anymore in order to do this it means that they can no longer control monetary policy with this action.

changing the reserve ratio would be the only policy they would still have because fractional reserve banking has been around since before the dollar was delinked from gold. In theory, the bank that pyramids off of the money in their bank is not creating actual new dollar bills, they are using a shell game to spend money while claiming that money is still in the bank. It should be considered illegal but the government would support it. The Fed would not want to use this power much because they can't change the ratio downward too much because too low of a reserve ratio would put banks into seriously dangerous levels of insolvency and they would probably eventually begin holding excess reserves.

So, in short, a 100% gold standard would effectively end the Fed's ability to affect monetary policy.
The Fed would also be limited in its ability to stabilize prices because it would be much harder to buy and sell bonds at will on a regular basis without being able to inflate the currency. So the Fed's powers are seriously inhibited by ending the ability to inflate the currency.