Make Your Argument For Why The Fed Is Bad

rockpuck i usually see eye to eye with you but i have some Huge reservation in believing anything would be better should congress have control over the money supply instead of the fed.

basically it comes down to this in my opinion

Congress will protect the economy (or try to ) better.....and say hell with the currency ....to do so....(they would be more likely to print money out to consumers) trash the currency ......mismanage intrest rates and then see a bond collapse in an effort to keep the people happy enough to vote them in next term......seriously

The fed will say to hell with the economy (to a degree) and have their main concern feeding the big banks profits.....but a currency that is intact (so long as it falls in a trading range with all other fiat currency's) because the banks need a viable dollar since that is what their profits are paid in. Now the fed is starting to walk a tight rope in regard to being able to keep the economy with enough credit to sustain earnings.......as well as minimize the amount of losses banks would shoulder for higher loan defaults.

so with the corruption of congress and no real over-sight with a regard for the long term stability of this country ....congress having control of the money supply is a loser to me.

and so with the corruption and favoritism of the fed toward wall street.....at the expense of taxpayers future obligations.....and all these trillions in debt gauranteee's........the fed is walking a tight rope .....as far as keeping the economy going.....the fed's biggest problem is the massive conflict of intrest...........the second is the fed indebting the country......(but the interest on the national debt isn't unbearable) also no country HAS EVER PAID OFF their debt in full........

so you got to weigh the lesser evils of each.......a "developed country" like ours with compromised congress would likely have had a currency collapse by now and i don't remember world powers ever sustaining thru a currency collapse.....

i guess you could title this reply "sympathy for the devil"



[edit on 26-7-2009 by cpdaman]

reply to post by cpdaman


I actually agree 100% .. politicians in charge of economics is a horrible idea... and by all means the fed should exist to regulate banks, just as automobile companies, insurance, health care etc all have regulatory commitees.

However..

The Constitution declares Congress can print the money and manage the currency as well as levy taxes. The fed as it currently stands is unconstitutional, and that's the only law I adhere to.

I don't belive the Fed is evil by any means... they have no interest in a failed us economy, I belive they act with a sense of self preservation. They have to much power though, they are unelected officials that effect the citizenry directly.. there is also, I would say, a severe conflict of intrest..

I would rather see most of their powers given to the treasury.. this way the executive branch can help directly control it, with congress in sole control over the currency.