5 /5 Mike Radford: If the US population, convinced that the Federal Reserve is a "private banking cartel" and it’s debt based ponzi system scheme is a tool of "enslavement," and they were to unilaterally decide to abolish it, the immediate and widespread consequences would likely be profound and chaotic. While the specific nature of the chaos would depend on how such a removal was attempted (e.g., legislative action, popular uprising, sudden collapse), the broad outlines of the disruption are widely predicted by economists and historians.
Heres a description of the likely chaos:
1. Financial Market Meltdown:
* Massive Loss of Confidence: The bedrock of any financial system is confidence. The sudden and forceful removal of the central bank, which is perceived as the ultimate guarantor of stability, would shatter both domestic and international confidence in the U.S. dollar and the U.S. financial system.
* Bank Runs and Failures: Without a counterfeit money printer of last resort (the Fed), commercial banks would immediately face a severe liquidity crisis. Even ”healthy” banks, which operate on fractional reserves, needing only 0% in reserves to issue new “money” loans would be rendered illiquid. These banks using fiat money they created on their screen just by typing it in would not be able to stop the bank run as they would be unable to meet a sudden surge in withdrawals. Bank runs, would become rampant, leading to widespread bank failures. Deposit insurance (FDIC) might also collapse without a central bank to back it up with its seemingly unlimited fake printed money or if the scale of failures overwhelmed its resources, which is highly likely.
