How To Eliminate the Fed

I have to admit that this is not my plan. In fact, I'm not even sure ending the Federal Reserve would be a good idea. This plan is outlined in the book "The Creature From Jekyll Island." The point is that you can't just make the fed disappear overnight, because that means our currency, literally the blood of the economy, would disappear as well. There has to be a systematic plan to break our dependence of the fed, and replace our currency with something better. Although, some of the steps are simply summarized, this is the path. This is how it could be done.

Step 1: Repeal Legal-Tender Laws: Right now the Fed note is legal tender for all debts, public and private. By repealing legal-tender laws Fed notes will still be accepted to pay your taxes, but private individuals will be free to reject or discount them as they see fit. It will also no longer be the "official" currency of the United States, freeing it up for Step 6.
Step 2: Freeze the Fed: Freeze the amount of Reserve Notes except for what is needed in Step 6 & 10.
Step 3: Restore Silver Dollar: Define the "real" dollar in terms of precious-metal content (ie silver dollar). Silver is a classic and historical success. It is by far the most successful currency of the past and hopefully the future.
Step 4: Establish Gold Back Up: Establish Gold as an auxiliary monetary reserve which can be substituted for silver when necessary; not at a fixed ratio, but whatever ratio the free market allows.
Step 5: Restore Free Coinage: Allow anyone to bring in precious metals and have the mint turn them into gold/silver coins. This allows for the market to adjust the money supply as required to avoid inflation and deflation due to money supply constraints.
Step 6: Pay Off National Debt: Pay off the national debt with Fed notes. Yes, this will cause Fed notes to inflate, but the deed has already been done. Congress decided long ago that we would use Fed notes to pay off the national debt. It's the only thing we have available to do so, but by doing Steps 1-5 we can free the economy from some of the consequences so it can live to thrive another day.
Step 7: Pledge the Fed's PM Reserves: The Federal Reserve claims to have a horde of gold. That gold should belong to the citizens and needs to be used to back currency like it was originally intended.
Step 8: Determine Real Value of Fed Notes: Determine the weight of the Fed's Gold and Silver reserves. Determine the number of Fed Notes in circulation. By knowing the number of notes and the amount of reserves, determine the actually value of Fed notes in real silver dollars.
Step 9: Retire Fed Notes: Now we know what they are worth, offer silver and gold reserves in exchange for Fed Notes. This will retire the Fed notes from circulation and add Silver Dollars into circulation in equal numbers.
Step 10: Issue Silver Certificates: When retiring Fed Notes, give the option to take the coinage or notes that are 100% backed by silver. Silver certificates will become the new paper currency.
Step 11: Abolish the Fed: We have basically eliminated all that the Fed did and therefore all reason to have the Fed. It's time to abolish the Fed.
Step 12: Re-Itroduce Free Banking: NO MORE BAILOUTS! Cut them loose from all protection at tax-payer expense. Replace FDIC with private insurance. Require banks to keep 100% reserves for all demand deposits.
Step 13: Reduce the Size of Gov't: The scope of government should be limited to the protection of life, liberty and property. NOTHING MORE! When the government tries to do too much, it does nothing well. It becomes a strain on the people and the economy. The Fed is our 3rd national bank. BIG GOVERNMENT = NEW FED. There is no point in eliminated the Fed without decreasing the size and scope of the government's power. Otherwise, we will just get a "new" Fed in a few years.
Step 14: Restore National Independence: Big Government and Tyranny is a threat on the domestic and international level. The only way to protect ourselves from global tyranny is by limiting our interdependance with foreign governments.


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