The Ludwig von Mises Institute has an interesting question: Do we even need to have a Fed?
For all the Fed’s imposing grandeur, Ben Bernanke is running our third (albeit longest-running) try at a central bank. This country has lived without a central bank before and, if given the chance, could do so again. Most every American (led by Paul Krugman), though, would be horrified at the thought.
I don’t know that I would be “horrified,” but as someone who has never known a time without a central bank, this seems strange to even consider. Who would manage the money supply? Well, the Institute introduced me to the Suffolk System:
…private individuals acting outside the bounds of political control have proven entirely capable of providing much the same functions as a central bank, and at a far lower cost, no less.[1] Such was the case with the Suffolk banking system, operated out of Boston from 1824 to 1858.
/snip
..a consortium of seven Boston banks formed the Suffolk banking system, and they invited every city and country bank within the New England area to join.
Operations commenced on March 24, 1824, with every member bank required to maintain a permanent, non–interest bearing account at Suffolk, along with an additional account with enough of a balance to clear all paper bank notes presented for redemption. Eventually (and much to the profit of Suffolk) the notes of member banks would be cleared against each other, and loans would be granted for “overdrafts.”[2] The system accepted paper notes from all member banks of good standing at par. All paper notes of nonmember banks were immediately sent back to the issuer for redemption in gold.
/snip
There are some historians who claim Suffolk cannot be labeled a central bank, due to its “lack of quantitative control” over the money supply, but this is not correct.[4] The system most certainly did have control over the money supply; else it would have been entirely ineffective. Unlike the modern central banks, though, the Suffolk system was specifically designed to restrict excess circulation of paper bank notes.[5] The directors would frequently threaten any member bank with redemption of their paper notes for the promised gold if they believed that bank to be inflating beyond the bounds of safety. They were aware of an important economic truth — it is the quality rather than the quantity of money that matters.
It’s an interesting concept. Could we do this today? What would the effects of decentralizing our money management system do to the local and global markets? Without gold backing up each note, could we do what they did back in 1824?
I do not even claim to be smart enough to have answers to any of these questions. Doing anything to the money supply right now would be such a crap shoot that I don’t think anyone in power would be brave enough to suggest such a thing, much less get any bills passed. But the prospect of removing this source of power out of government hands is a tantalizing thought.
Tantalizing…but not to Krugman. His head would probably explode. Without the benefit of some splodeyhead doing it for him.
I think this will likely be reposted on Tuesday’s thread, seeing as how it is Tuesday as I write this: Headline: Democrats Cancel Speedway Event At Charlotte Convention . . . .The move comes as party planners are grappling with a fundraising deficit of roughly $27 million, according to two people familiar with the matter who requested anonymity to discuss… Read more »
#80 Sarge
What a great find! Charade, His Girl Friday (The cops came rolling out like oranges), Road to Bali, Great Dictator, Scarlett Pimpernel, Sherlock Holmes and the Secret Weapon, The 39 Steps, John Wayne, Birth of a Nation, The Golem, Battleship Potemkin, Cream’s Farewell Concert, Animal Farm, etc.
I’m in Saturday Night at the Movies heaven.
Wow, I just read the 2012 Republican Platform, still calling for the abolition of the lottery and return to the Gold Standard. There’s going to be troulble if these guys get into a position of power and implement the platform. 😉 Gambling ― We oppose the expansion of legalized gambling and encourage the repeal of the Texas State lottery. We… Read more »
500 full length films you can stream or download for free.
I’ve been detailed to Hunter’s Point and Treasure Island, there ain’t nothin that can be done. It might as well be the Chinese’ money as opposed to someone else’s. Lennar Corp., LEN +0.80% one of the U.S.’s largest home builders, is in talks with the China Development Bank for approximately $1.7 billion in capital to jump-start two long-delayed San Francisco… Read more »
It is about time. Granted, I am easily fooled but it appears the Air Force is finally making an honest effort at addressing this assult on America’s finest. What the colonel did not mention directly in his recent address was a widening sex scandal that has rocked the base, one of the nation’s busiest military training centers. Allegations that male… Read more »
Sorry, Eureka’s a good show with a loyal following. Granted not as high as Dancing With the Stars, but good entertainment nevertheless.
Man the frik up Nancy and quit whining.
Sigh,… 🙁
As to today’s Arizona decision, the court has decided that the government must be provided the opportunity to demonstrate that they will abuse their power. This is different from previous courts that didn’t trust the government in any way shape or form.
I just don’t understand how they can cancel that show, one of the few I’ll watch ………….
Where were we? Oh yeah.
Blog Monkey has reminded me that as a progressive I am held to a higher standard and should turn the other uhhh…. cheek.
I won’t C&P other’s transgressions as that doesn’t excuse my response.
I sure hope the FBI is on this, but with this Justice Department, its unlikely. Aaron Walker, one of the bloggers targeted by Brett Kimberlin, is the latest victim of SWAT-ting. Walker, who goes by Aaron Worthing online, tweeted the news of this extreme form of harassment being used on his family shortly after news broke that the peace order… Read more »
I’m gonna need more popcorn A single internal Department of Justice email could be the smoking-gun document in the Operation Fast and Furious scandal — if it turns out to contain what congressional investigators have said it does. The document would establish that wiretap application documents show senior DOJ officials knew about and approved the gunwalking tactic in Fast and… Read more »
As I understand it, the Arizona police officials cannot release an offender that they suspect of being illegal until that determination is made, yet Big Sis says she won’t help Arizona police in any way – therefore, is it safe to assume that these people will be detained indefinitely pending determination of their legal status? Sheriff Joe might need to… Read more »
I thought Granny Hammy doesn’t tolerate ad hominem BPH (aka Caca de TORO)
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,just think of the bandwidth we could save!
*NO SMILEY*
Chief Justice Roberts voted with the liberals on 3 of the 4 issues brought forward in the Arizona case, which I though was unusual. Here’s what I think – I think this was an effort by Roberts to toss the Obama Administration a bone prior to the big slap down on Obamacare. Hope I’m right on this. As I understand… Read more »
Numnutz? He’s a bit more offensive than usual. I bet its the prospect of the kind lof week he’s going to have poltically. It appears that the two Justices writing opinions on Obamacare are Justice Roberts who is likely writing the majority opinion and Justice Ginsburg who is likley writing the dissent. There s some opinion, however, that the decision… Read more »
Ooh ……………. Eureka’s on, gotta go
Numnutz, hold that thought I’ll get back to you. And try not to scratch, no matter how much your nose itches.
#64 Are you referring to your favorite condiment or something?
Speaking of butt acne …………………
Right on cue.
#57 Bob if you can’t see the pattern of intentional deception (FREAKING LYING) with the examples we have highlighted just today then you are blind. It is not error, because that error would sometimes be against JugEars but, seeing as how that has never been the case, it has to be intentional manipulation/propaganda. You throwing out the “conspiracy” word is… Read more »
#60 crazy aunt
Does he barf?
Just great, even the Scots think we’re balmy. One ACE textbook – Biology 1099, Accelerated Christian Education Inc – reads: “Are dinosaurs alive today? Scientists are becoming more convinced of their existence. Have you heard of the ‘Loch Ness Monster’ in Scotland? ‘Nessie’ for short has been recorded on sonar from a small submarine, described by eyewitnesses, and photographed by… Read more »
I can vouch for the fact that Lovely’s dog has no compunctions about taking on other dogs three times his size. I can also attest to the fact that once he figures out you’re a friend, you may have trouble getting rid of him.
Not that the last one is much of a problem.
# 54 Bone Actually that is exactly what my God mother said who is a dog fanatic, but the vet and I are pretty sure he is part Terrier and Dachshund. He also has the traits of the two of them too. He is determinately a cuddle bug which I love and then a adventurer/trouble-maker-thanks-to-hubby, which we both laugh at.… Read more »
My conspiracy theory meter is pegged again. Yah, you’re probably right. No reason to think that they are doing this on purpose. Just last week, Andrea Mitchell was caught red-handed in an attempt to edit Romney into what could’ve been a defining gaffe (which you can bet was the whole idea). Earlier this year, NBC’s once-legendary “Today Show” was caught… Read more »
My conspiracy theory meter is pegged again.
You guys are so funny, sometimes I think Hammie’s couch should have a cover charge or a two drink minimum.
#55 Sarge: The libs didn’t seem to think it was a problem when NBC rigged a pick-up with asplosives to asplode in a side collision. The libs didn’t seem to think it was a problem that Dan Blather on CBS used blatantly forged documents to libel George Bush. The libs didn’t seem to think it was a problem that this… Read more »
They didn’t think it was a big deal when NBC deceptively edited the Gerogre Zimmerman 911 tapes to make him look like a racist. They didn’t mind at all when NBC deceptively edited a tape in an attempt to make Mitt Romney look bad. I wonder if Liberals will care when they find out that Jerry Sandusky might get an… Read more »
I see a bed warmer. Brittney Spaniel, try as you will, that dog is gonna be in the bed with you and AB.
# 52 Bone crusher, try now I just made the picture public. If then that doesn’t work I don’t know what will!
#47 LD: Linkie is different but still no workie. Translation: no doggie pic.
F and F with the associated EP: I just heard a caller on Hannity mention that Holder sent a message to JugEars to the effect of “If I go down so do you.” I would suggest that Stedman not take any overseas flights or he may have an “accident” similar to the one Ron Brown had during the Clinton admin.
Whether it’s Nixon’s out of control ATF, or the similarly powerful and overfunded DEA, it’s yet another case of “Meet the new boss, same as the old boss” when it comes to lying and stonewalling at congressional hearings. “Is crack worse for a person than marijuana?” Polis asked Leonhart. “I believe all illegal drugs are bad,” Leonhart answered. Polis continued,… Read more »
Oh, and before I forget, since Obummer is asking people to use their gift registries to carry the option of giving a donation to the Obummer re-election committee instead of some meaningless gift to a bride and groom or a gift to anybody else, the next thing the Obummer people will be asking is that “in lieu of flowers” for… Read more »
Does anyone know of anyone looking for a engineering, architecture, or of the like job? Aggie Beau’s firm is desperately trying to hire people for all over, but also here in Houston. Let me know if anyone is interested!
Maybe this is better
Since I wrote a list of reasons why Moochelle wanted four more years for Barry, I thought maybe Barry should have a list of his own. So here is Barry’s “Top Ten” list of reasons for wanting to be re-elected: 1) Wants to become the first Muslim Brotherhood president of the United States. 2) Rather likes playing the role of… Read more »
#42 LD: 2nd linkie no workie.
38 mharp
I’ve done both.
I guess you’ve noticed which one I dropped.
As far as tehe SCOTUS ruling today; what part about protecting against invasion does the SCOTUS and the Ds not understand? ARTICLE IV STATES’ RELATIONS Section 4. The United States shall guarantee to every State in this Union a Republican Form of Government, and shall protect each of them against Invasion; and on Application of the Legislature, or of the… Read more »
Cute puppy picture(s) of the day
The second one is my own pup, just so darn freakin’ cute!
Maher is certainly a politically biased comedian. I was able to get over that while enjoying Gillespie & Maddow’s discussion.
Ace puts it this way. Bill Maher actually said this: 1, Republicans don’t care about dead Mexicans, and 2, it doesn’t matter if US government guns killed Mexicans, they’d be dead anyway. “So is this really a scandal?” he wanted to know. So, Bill Maher actually said, to paraphrase, “Who cares about Dead Mexicans, they’d be dead anyhow, and those… Read more »
I saw that Maher interview already. I agree with Bonecrusher. For Maher to say what he said is not only a lie, it’s another example of the bankruptcy of people like him. He should know better, and if he doesn’t it’s because he’s blinded himself to the extent that he can’t see the humanity of anyone else. I’m not really… Read more »
On Drudge:
Someone better let Shannon know…
🙂
#36 Bob: When that ^&^%$#$%^& stack of filth, Maher, said that Rs don’t care about 200 dead Mexicans I wanted to shoot my monitor. That is caustic, outrageous, not funny and a wissin lie and everyone knows it. Gillespie should have shouted him down at that instant and called him the lying sack of *&^* that he is! People of… Read more »
Reason’s Nick Gillespie goes head to head with Rachel Maddow on Operation Fast & Furious. They didn’t agree on much, but I agree with some of what each one had to say.
Content Advisory: They appeared on Real Time with Bill Maher.
Kind of a happy sad story
http://nosilencehere.com/?p=1872
h/t instapundit
More money spent on poverty.
Poverty goes back to what it was when LBJ waged war on it.