[quote=Eugene][quote=patb]Nationalize the fed. Excellent
Creates new money? A change over forces hidden cash to be explained.
Ends fractional reserve lending? The tea baggers should be thrilled.[/quote]
I should clarify that he wants to ban ALL lending (or at least make lending the sovereign right of the federal government). To quote, “Any person who creates or originates United States money by lending against deposits, through so-called fractional reserve banking, or by any other means, after the effective date shall be fined under title 18, United States Code, imprisoned for not more than 5 years, or both.”
So that pretty much means shutting down or nationalizing all banks, credit unions, mortgage lenders, etc. etc.[/quote]
How would that shut down all banks and credit unions?
It clearly states that you can not do lending via the “so called fractional reserve banking”. It doesn’t say you CANT lend!
All that means is they can’t receive 1.00 on deposit and then lend out 6.00 and collect interest on 6 based upon the 1.00 deposit, as the current “fractional lending system allows”.
It might do some good for a bank to take in 1.00 in deposits and only loan out 1.00. It might encourage them to pay depositors more interest to attract more deposits. It might encourage them to be more selective about lending money to only those who might be able to pay it back.
Lax lending destroyed our economy.
Exactly how is revamping a banking industry that has gotten a free ride and screwed the American public, GOING BONKERS?
