A lot of people seem to believe that although the market economy is a swell system, it requires the equivalent of a Soviet commissar to be in charge of money and interest rates. This belief is altogether misplaced. The Federal Reserve System, or simply "the Fed," is both harmful and unnecessary.
Since the Fed was created in 1913 the dollar has lost at least 95 percent of its value...
We were once told that boom-bust business cycles were a thing of the past because, thanks to the Fed, we now had scientific management of the money supply... To the contrary, they artificially stimulate capital-goods production and long-term investment. They thereby deform the structure of production into a configuration that the public’s freely expressed pattern of saving and consumption will be unable to sustain. When this phony boom inevitably collapses, it is "capitalism" that takes the blame – when in fact the Fed, a non-market institution, is the culprit...
The Fed is the lifeblood of the empire, the great enabler of the perversion of the original American republic into the world’s largest and most powerful government. Even if the central bank did confer a net economic benefit, a contention the great Austrian economists F.A. Hayek and Ludwig von Mises strenuously denied (and indeed Hayek won the Nobel Prize in the process of denying), the alleged benefit could not possibly be worth the destruction of the American soul...
For the sake of American freedom and prosperity, it is long past time that, in the spirit of Andrew Jackson, we killed the monster.
read the essay
My thoughts: Naturally the people in Washington want to extend even more power to the Fed instead of abolishing it. Ron Paul's Audit the Fed bill gained a majority of the House as co-sponsors, yet it is unlikely that the Fed will ever be audited.
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