A Novel Approach To The Economic Issue, Opinions Appreciated

As far as I know the current situation works, it's just a tool.

How that tool is being used is another matter.

You can use hammers to drive nails and build something really good or you can use it to go around smashing car windows and stealing what is inside. Currently, the Fed is being used in the latter fashion imo.

Something along these lines to clarify things

Lincoln's Monetary Breakthrough

The bankers had Lincoln's government over a barrel, just as Wall Street has Congress in its vice-like grip today. The North needed money to fund a war, and the bankers were willing to lend it only under circumstances that amounted to extortion, involving staggering interest rates of 24 to 36 percent. Lincoln saw that this would bankrupt the North and asked a trusted colleague to research the matter and find a solution. In what may be the best piece of advice ever given to a sitting President, Colonel Dick Taylor of Illinois reported back that the Union had the power under the Constitution to solve its financing problem by printing its money as a sovereign government. Taylor said:

"Just get Congress to pass a bill authorizing the printing of full legal tender treasury notes . . . and pay your soldiers with them and go ahead and win your war with them also. If you make them full legal tender . . . they will have the full sanction of the government and be just as good as any money; as Congress is given that express right by the Constitution."

The Greenbacks actually were just as good as the bankers' banknotes. Both were created on a printing press, but the banknotes had the veneer of legitimacy because they were "backed" by gold. The catch was that this backing was based on "fractional reserves," meaning the bankers held only a small fraction of the gold necessary to support all the loans represented by their banknotes. The "fractional reserve" ruse is still used today to create the impression that bankers are lending something other than mere debt created with accounting entries on their books.1

Lincoln took Col. Taylor's advice and funded the war by printing paper notes backed by the credit of the government. These legal-tender U.S. Notes or "Greenbacks" represented receipts for labor and goods delivered to the United States. They were paid to soldiers and suppliers and were tradeable for goods and services of a value equivalent to their service to the community. The Greenbacks aided the Union not only in winning the war but in funding a period of unprecedented economic expansion. Lincoln's government created the greatest industrial giant the world had yet seen. The steel industry was launched, a continental railroad system was created, a new era of farm machinery and cheap tools was promoted, free higher education was established, government support was provided to all branches of science, the Bureau of Mines was organized, and labor productivity was increased by 50 to 75 percent. The Greenback was not the only currency used to fund these achievements; but they could not have been accomplished without it, and they could not have been accomplished on money borrowed at the usurious rates the bankers were attempting to extort from the North.

Lincoln succeeded in restoring the government's power to issue the national currency, but his revolutionary monetary policy was opposed by powerful forces. The threat to established interests was captured in an editorial of unknown authorship, said to have been published in The London Times in 1865:

"If that mischievous financial policy which had its origin in the North American Republic during the late war in that country, should become indurated down to a fixture, then that Government will furnish its own money without cost. It will pay off its debts and be without debt. It will become prosperous beyond precedent in the history of the civilized governments of the world. The brains and wealth of all countries will go to North America. That government must be destroyed or it will destroy every monarchy on the globe."

Lincoln was assassinated in 1865. According to historian W. Cleon Skousen:

"Right after the Civil War there was considerable talk about reviving Lincoln's brief experiment with the Constitutional monetary system. Had not the European money-trust intervened, it would have no doubt become an established institution."

The institution that became established instead was the Federal Reserve, a privately-owned central bank given the power in 1913 to print Federal Reserve Notes (or dollar bills) and lend them to the government. The government was submerged in a debt that has grown exponentially since, until it is now an unrepayable $11 trillion. For nearly a century, Lincoln's statue at the Lincoln Memorial has gazed out pensively across the reflecting pool toward the Federal Reserve building, as if pondering what the bankers had wrought since his death and how to remedy it.

Yes! Abe Lincoln did it, Ben Franklin did it, Thomas Jefferson wanted to do it.

Anyone that doesn't understand this needs to watch this: http://www.youtube.com/watch?v=7qIhDdST27g

Nope, we now have a debt based monetary system.

I can understand your confusion on the matter AlmostCollectable

It is understandable because they way it is set up now
it is meant to be confusing. a "Federal Reserve Note"
is a note from the Federal Reserve BANK.
It is a for Profit Private Corporation.
It is no more Federal than Federal Express.
Once I got my head wrapped around that. Things
started getting easier to understand

Here is a simple question. Are the big investors buying these Federal issued bonds for example (QE-whatever), getting payed with interest in due time? I imagine they are for them to be planning to do more, but is that payment from just more over printed, over extended dying dollars?

SilverHawk,

Great question, and I fear that you are right in the thought
that will do and want more than just interest on their investment.
Just imagine for a moment is you personally could control the
money supply of a country.
With that ability you could approach the president and congress
and ask them to pass favorable laws for you and your friends
businesses. And if it was determined by the president or congress
that these new laws you are proposing is not in the best interest
of the country. You could threaten to though the country into
a depression simply by contracting the money supply.
(making the money supply smaller) less money circulating
then the remaining money becomes scarce and is hoarded
bringing normal commerce to grinding halt. No commerce, No economy.
Prices drop dramatically and you would be able to move in and
scoop up real assets (Real Estate, Operating Businesses) for
pennies on the dollar, Because you know exactly when you plan to
loosen up the money supply and watch prices rise again.
And if you really want to profit obscenely you could over supply
the country with money. Driving prices up dramatically for
the same assets that you just gave pennies on the dollar for
a year or two earlier and sell at the inflated prices.
Because you know that the Dollar is worth less than it was
earlier. BUUUUUT not for long because you plan on contracting
money supply again (Raise Interest Rates) and starting
the whole Boom and Bust cycle all over again.
Right now they are picking up real estate at incredibly low
prices.
I managed a Mortgage Company back in 2000-2002 time frame
and properties that were appraising in the 50-75,000
and as high as $125,000
range I have been seeing them sell at foreclosure sales
as low as $4,000 and with a median of 7-$20,000 range.

Scary thought huh? having the control of a countries money supply
in the hands of a for profit corporation.
Now take that scary thought and extrapolate it out to the
ENTIRE PLANET.
After all the United States Dollar IS the Reserve Currency
of the Planet at this time in history