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Privatizing the U.S. money supply (My Discussion Post)

Privatizing the money supply in the U.S. completely can affect the economy. The problem is with this method is that any money in circulation must be accepted by others in a certain value or exchange rate. Governments have always relied on the private sector for goods and services but this can lead to corruptions and other issues (Privatizing in the United States, 2013). It can be very dangerous because it involves dishonest firms. There are pros and cons in using this method, it can be use by the government as a solution in some issues but on the other hand it can be a problem that applies to other aspect of the government. Privatizations have both negative and positive results.

The 3 responses below are from the instructor and classmates so I need to reply to them.

1. I agree that there is a certain level of trust with The Fed and anyone that would try to take over that role steps into a situation that holds incredibly sway in our economy, but how can we assure the people that they would have no bias? Do you think the Fed had to overcome these same concerns when they started up a century or so ago? Also, the question I had fun with was what do you think would have to happen in order for us to make the change to a privatized money supply?

2. In your post you talk about corruption in privatizing the United States, but over the last few years corruption has shown that corruption can happen anywhere.  Also another thing to keep in mind is that if we do trust the Fed they can also make bad decision that have shown in recent years we can bite more than when can chew in end up in the situation that we are in today with a lot of debt. 

3. We know that there is corruption in government but that doesn't go away if it is moved to the private sector.  I mentioned in a previous post that private entities may have different motives in business.  For example, a private business would be focused on profit where government may be more focused on how money supply and monetary policy impact the economy. We saw some of this corruption or perhaps more so mismanagement of business with this latest recession.  Financial institutions were taking on more risk than they should and were having high rates of defaults on loans and mortgages, etc.  While this was probably a play for higher profits initially, it backfired when the banks were taking losses.  Do you think this situation would have been more destructive had the banks also been in charge of money supply and monetary policy?