Nationalize US Banking and Return to the Gold Standard
Arguments For: The US banking system has failed the American people. It is out of control and needs to be reigned in so it can be restructured properly.
Arguments Against: The US banking system is based on free flowing capital. Nationalizing it would cause international turmoil and likely cause major harm to the US economy.
Discussion Point: Suppose all US banks were nationalized. Eliminate the Federal Reserve; replace it with a system of strongly regulated free banking. Let banks be banks and let investment houses be recognized as the “casinos” they are. The idea is a clear delineation of services & safety. Banks would be required to maintain 100% deposit reserves (Eliminate the practice of fractional reserve banking). Allowing America to print debt-free currency would strengthen the dollar.
Foreign Interests would pull their assets and the US economy would collapse
The US banking system is not only about American’s cash deposits in the local bank. Deposits are only a fraction of what encompasses a worldwide system of interconnected finances US banks are free to participate in.
Would Foreign Interests pull their assets out of the US economy? Really? Well then let’s have that discussion
First of all, how did American banking industry get in a situation where foreign interests control one fifth of our money supply? Did American citizens authorize these types of transactions using their deposits? Why are foreigners allowed to have ownership in American banks? Is this even legal? If so, let’s make it illegal.
We Need More Accountability
Exactly what is he relationship between the American people’s money and the US banking system? Oh and by the way, “It’s too complicated” is not a sufficient answer. If it is “too complicated”, it needs to be simplified so a 4th grader can understand it.
It’s All About Trust
Americans have lost faith in their government, their employers and now the financial system. If we don’t fix at least two of these very quickly, we may begin to see civil unrest. The experiment with fractional reserve banking has been a complete failure, allowing banks to lend money that wasn’t even there. How can anyone trust a system based on lies?
Proposal: Coming soon.
Why this is a reasonable compromise: TBD.