I think two simple things would lead to ending the Fed, both of which Ron Paul has on his agenda already.
The first is auditing the Fed. I do think that a serious audit would have built up such anger in the country it would have snowballed all the way to abolishment. I think that was Ron Paul's calculation all the way. Too bad we were sold out by some wuss Senator.
Competing currency. I've heard Ron Paul mention this already. I think it would be enough to destroy the dollar and end up killing the Fed in the process. Would kill for a gold backed currency or commody money, but not holding my breath just yet. Just repealing the legal tender law kills the Fed, imo.
The impending currency crash sometime in the next few years. No way does the Fed survive that, imo. And I think we get a gold commodity money or real gold backed currency. I don't see the people putting up with anything less after they see their fiat dollar pancake. I know I won't.
"The first is auditing the Fed. I do think that a serious audit would have built up such anger in the country it would have snowballed all the way to abolishment. "
Anger? What anger? There is nothing the Fed can be doing that the government isn't already doing but is already considered legal anyway. Who gives a crap if Bernake gave some money to his friends abroad? How is that any more theft then all other forms of taxation?
They can print money and force you to accept it. What more do people need to get angry?
Who needs a silly government audit? Who are these people anyway? who gave them the authority to audit anything. They are as illegitimate as the Fed itself.
The Fed will end itself when it bankrupts itself.
How can it go bankrupt? It can always print money or shuffle bits on its supercomputers.
I agree with you for the most part Razor. I don't think we'll see an audit soon since it just doesn't have the support. Paul tried to stick it in the financial reform bill that passed last month but to no avail.
You haven't considered the value of the printing presses.
"You haven't considered the value of the printing presses."
Do you really think I would not consider it?
I should have said insolvent, not bankrupt. Anybody can become effectively insolvent. No matter what the law says or how many printing presses he's got.
Even if he can pay his debts by cranking the printing presses? Even if he can forcibly exchange his counterfeit money for real goods and services?
Not if nobody wants his paper anymore.
@ razerfish
The audit will never happen.
DD5 is right about "anger". There should be plenty of anger right now given what the Fed has done, and is doing, to us. But there is no anger. Rather, the voters look to Fed "policy makers" to guide us through these "rough times" cause by "greed" and "lack of regulation".
No competing currency will arise. Any threats will be dealt with.
No nation on Earth will allow its citizens to use commodity money. It causes government to lose power.
Legal tender laws will never be repealed. Why should Congress kill the very thing that feeds it?
Currency crisis: You believe the response will be a commodity money. The people will not react that way. They will demand more government services, government help. They will gladly surrender what remains of their liberty for the security of a government soup line.
"The market is a process." - Ludwig von Mises, as related by Israel Kirzner. "Capital formation is a beautiful thing" - Chloe732.
You might be right but a lot stuff remains hidden these days. It's difficult to trust media.
Well, he gives you no choice: you can give your stuff for his money or he will shoot you and take your stuff anyway. He has millions of soldiers under his command, and he gives them a share of the loot to maintain loyalty.
"Even if he can pay his debts by cranking the printing presses? Even if he can forcibly exchange his counterfeit money for real goods and services?"
When banks and governments become heavily in debt that is not denominated in its own currency, the central bank is severely limited in baling out banks' and treasury's debt. This is how the entire Icelandic banking system together with its Central Bank became insolvent.
The Fed simply enjoys the privilege of having its dollars sort of accepted (in an informal manner) as the reserve currency of the world. This is already beginning to end right now.
Now let's take your hypothetical scenario of just printing money. Inflation won't do much good if it is simply used to finance and rollover more debt. It is like a dog trying to catch his tail. At some point he will have to stop inflating, even if it's after he destroys the monetary system. At that point, when ever it is, there will still remain the outstanding debt. The minute he presses the Red button to stop the printing press is the minute he effectively declares his own insolvency.
"The minute he presses the Red button to stop the printing press is the minute he effectively declares his own insolvency."
He's been printing money nonstop for 97 years. He won't stop until there's no more paper and ink.