Why can't the Federal Reserve be abolished?

Answer 1

It certainly can be abolished anytime by congress by simply revoking it's charter.

But your question begs the follow-up: To be replaced by what?

History tells us what it would be like without a publicly owned central bank by looking at how things worked before 1913.

Without a publicly owned central bank:

- History has shown that large private banks would dominate monetary policy

- Smaller banks would be dependent on larger banks for credit extensions, currency, etc. History has shown that larger banks often consider smaller banks as competition and didn't care if they failed. (After 1935, the Fed was charged with looking after the overall health of the system)

- Federal Reserve notes would have to be replaced by... private bank notes? Treasury Notes?

- The Federal Government would have to do it's banking in large private banks

- In international monetary matters, the nations largest private banks would represent America

- there would be no coordinated monetary policy. Each bank would expand or contract credit based on their immediate business needs, not the natons requirements.

- There would be no elasticity to the currency. You would see more cycles of inflation/deflation, and boom/bust as we saw in the 1800s

- Banks would return to being audited soley by themselves in their shareholders interest. (After 1935, the Fed was charged with being the nations bank auditors to serve depositers interest as well.)

- Clearing of checks would go back to private clearinghouses often run by large banks. Without an impartial clearinghouse, decisions in the process would sway toward the private interests that control it.

So yes, it can be abolished anytime by congress.

And it is a worthy intellectual endeavor to ask the question, along with the follow-up of what to replace it with?

Answer 2

The Board of Governors of the Federal Reserve System is an independent government agency. It influences money and credit conditions in the U.S., supervises and regulates banking, maintains the stability of the financial system, and provides certain financial services. To abolish it, would cripple this country's economy and have a rippling affect on the gobal scale; that the world has never experienced.

For more information check out the below listed site:

Answer 3

You don't say why you would want this, so the question is kind of vague. It could be abolished, but something very similar to it would have to be put in its place or you could have Congress take over the administration of money in the US. That might make a corrupt congressman even more likely to damage the country. If you are a Libertarian and want to go to a strict gold/silver standard you would have an economic disaster in the country due to the economic system already embedded in our country. The method of creating money and than charging interest on that money seems suspect to me, but I don't see a change coming any time soon. The Federal Reserve is so strongly ensconced in our society and they have been given the power to shroud so much of their activity that it would be impossible for the average person to ever make a dent in their existence.

Answer 4

USA's phony world bank in possession of all the fresh paper print & private hand on the banking interest loan scheme's! I.m all for it being abolished cause this private entity created in the 19teens somewhere starting the first of banking globalization may have been responciable for the great depression where most not all suffered Kinda like whats happening now! Lots of corruption going on here with effects that victimize the American public!

Answer 5

I bet you are one of those people that does not believe in insurance, does not trust banks and think that people who are fiscally sensible are nuts!

It is the parachute for when the aircraft ditches. The insurance for when the fender bender happens. It supports the Dollar (not very well it has to be said!).

Answer 6

Something to do with Woodrow Wilson I think.