Why End The Fed?

Why End the Fed?

I continuously hear libritarians demanding to end the federal reserve. I am curious as to why. Even Milton Freidman approached that view with extream skepticism. So lets hear it. Why end the fed? Whay not alter it? What do you propose in its place? Certainly you dont want congress tampering with monetary policy. I certainly agree with you that the Fed is hardly perfect and their strong arm tactics as displayed during the bank failures was unacceptable but whats the deal with the fed?

Here is the best explanation I've heard.

[ame="http://www.youtube.com/watch?v=IC67eclmY5g"]YouTube - ‪Milton Freidman on the Federal Reserve System‬‏[/ame]

 

The father of modern monetarism is your source? Nice.

 

at the very least we need someone watching the fed sos situations were in dont happen. they could use an audit at the very least.

 

Your one of those people who argue for no other reason but for arguement sake arent you? I didnt source anything. I didnt use the video to prove a theory or my point. I used it to show what I beleive to be the most sound explanation of those who hold the view that we need to end the fed.

 

In the video itself he explained the system itself doesn't work and the reason that system doesn't work like he said was due to not having the right people at all times being present. So you create a system that doesn't involve that perfect being to be present at all times. Which means the Federal Reserve has to be closed because that sort of system no matter what will require the perfect being to be there.

When people explain that we should go back to a resource backed Economy they're not crazy. Because that system didn't require the perfect being to monitor it... it required humans being human. That's why it was a near perfect system because it heavily relied on the Humans being what they are instead of looking for Angels to guide us.

 

And what would an audit do other than to satisfy your curiosity? To ensure that the fed is acting within some sort of constitutional or legal role? If so what?

 

Freidman was also a road socialist (although he was great on just about everything else). There is no reason we need govt manipulating interest rates. The market can handle money just like it handles hamburgers and golf balls.

 

I know exactly what Freidmans talking about. Thats why I referenced the video of the most sound explanation I've heard. But beyond that no one who wants to end the fed can explain what they would do to replace it. Thats a problem. In fact, most people who want to end the fed have never taken a Macro class in their life and have absolutly no clue of how the fed operates. I'm not trying to defend either side here. I assume there must be good reason if so many experts are calling for it. I would like to know what to propose in its place and know specific mathematical details.

 

The value of the dollar stayed approximately the same from 1776 to 1913. The value of the dollar dropped approximately 95% from 1913 to 2010. When was the Federal Reserve put in place? Ah, yes, 1913. What a weird coincidence.

Who in their right mind would want The Fed? You're giving the power of who gets how much money in one person's hands. Hell, The Fed doesn't even have to print money anymore. The chairman can simply add zeros to bank accounts. This artificial money only stays afloat for a while until it collapses. Hayek even predicted the Great Depression a few months before the stock market crash. He stated in an interview that the Federal Reserve was pumping too much money into the economy and that this was bound to collapse within the next few months. His prediction was spot-on correct.

What would I like to have in place? I rather have Congress, comprised of 535 members, "tampering with monetary policy" than one man that happens to be the chairman of The Fed. It worked for over a hundred years prior to The Fed, and it would be much, much better than what we have now. However, this is hardly the perfect solution. I would advocate for complete abolition of government involvement in currency and let the free market handle it.

 

Yes but if the government is going to play the corperate/individual welfare game or the social justice game you absolutly want them manipulating interest rates! Its the only way to recover from the failure that social justice/welfare/redistribution brings.

 

Thats a ridiculous assertion.

 

You don't need details when it's resource backed... because the market itself determines what is of value and what is not. Works completely on the Human drive for needs and wants which is truly a perfect system in itself because I don't see us evolving for another several thousand years.

 

The great majority of Americans still think the federal reserve is government and don't know it is a private entity. As important as money is in western society, until economic classes are mandatory in schools teaching the history of money, how it works, fiscal responsibility, different monetary policies and approaches to banking and the creation of money, one must assume our whole monetary system is devious in nature. The playing field is not equalized with hand outs. It is equalized with the education of money for all.

 

But it doesn't help recover from the disaster of social welfare. It further screws up the functioning of market prices.

 

Have you ever studied how the fed works? Did yo u know that we hit the great depression because the fed refused to inflate our money and release the gold reserves (among other things of course)? And you do not want congress making monetary policy! Tell me. I know youve read his book. What does Ron Paul have to say about how to end the fed and what would he replace it with if anything at all?

 

I wouldnt want it to be government either.

 

The so call fed, is not a government anything.....it is a private company.....NOW how many people know this is the real question.....

 

A lot of people. And government certainly has a lot of influence over it.

 

I was refering to the housing bubble that was absolutly manipulated by the government. How would we get over such a economic slap in the face without the fed. If you were to end the fed you would absolutly need a free market to do so. In the absense of one its better to keep it.

 

How would we have gotten in to it in the first place without the fed?

 

Yeah, you heard that from government... I mean "public" schools, right? I suggest you read the last quote in my signature, and do a little research on the Great Depression and the Federal Reserve. I suggest you start by reading this book:
The Politically Incorrect Guide to the Great Depression and the New Deal

Why? They did it for over a hundred years and kept the value of the dollar steady. They did a much better job than the Federal Reserve.

Where did Ron Paul come from? I want to end The Fed because I have done research outside of what the government tells me is true. I suggest you do the same.

 

How about letting everyone make their own conclusion? Our children spend the majority of their childhood's going to school to be soaked with tripe and then we wonder why we can't decide who is dumber, those who took school seriously or those who didn't. Sure those who take school seriously have better financial success, but seldom do you find someone intelligent that you can attribute to their schooling. Schooling, at this point, is for making more useful serfs.

 

Its accurate. Most people who want to end the fed have absolutly no idea of how the fed operates.

 

What?

10char

 

I'm going to need a source for that absurd claim.