I wrote a proposal for a radical overhaul (at the bottom) of our financial system. The first feedback I have received is that it would “cause a global depression for ten years”. This I got second hand from a friend whose brother is a nationally known financial adviser. That’s all I got, though. He didn’t reply to my email, and apparently doesn’t meet people for beer.
Pondering what he meant, it must have been a crisis of liquidity, which is to say cash for investment. If that is the case, then it seems to me we could address that by creating extra money for all citizens. Every citizen of the United States could be given $1,000, to be used in an economic investment. Or $2,000. Or $20,000. Or access to that money, as a line of credit held by their State government. This money would be created prior to ending the Fed.
Perhaps that would be best. Each State is given, say, a $20 billion surplus in money, from which all members of the State can draw for business investment at no interest. This would democratize money, spur growth and investment, and economic progress.
The traditional alternative is for banks to do the same thing. They have a line of credit which ends, finally, in fiat money. Why should the banks be the sole conduit of financing, particularly if the money in the end comes either from a government run central bank (everyone else) or a semi-private, semi-public financial cartel like the Federal Reserve? It is anti-free market and anti-democratic.