Should the Bank of the United States be reinstated, and why or why not?

Asked Oct 12, 2015· 1 answer ·United States
Faisal KhanAnswered Oct 12, 2015
Asking is the same to do away with fractional reserve banking. One immense problem with the fractional reserve banking is that is all the money that the US government has loaned from the Feds is given back, there isn't money in the money supply to pay for the interest.

Secondly, the bank would be forced not to issue more money (or debt) beyond its capitalization, which again would pose a problem.

The long and short of it is, we're in a debt trap, that is now too deep to climb out of. Every knowledgable banker and economist knows of this.
MacroeconomicsPolicyMonetary PolicyFinancial Theory United States
Related in Economics, Inflation and Monetary Policy
As Americans, what can we do to increase the strength or value of the U.S. dollar?1 ansWhy does it seem like most people don’t really understand how money works?1 ansWhat happens when the government raises the borrowing rate to curb inflation?1 ansDo economists classify balances in Venmo or PayPal accounts as part of M1 or M2 money supply?1 ans