Should we get rid of the FED?

Question

small group of ppl with total control of the money supply doesn't sound democratic, Why not make it government operated

thanks

Answer 1

well, you would have to think of every consequence that would have upon our government and the people. If you see it as a positive outcome, then do it, if not, don't make another mistake like Iraq...

Answer 2

It is government operated. The capital for the Federal Reserve System is private--oversight and control is in the hands of the Federal Reserve Board--whose officers are appointed by Washngton.

It is an independant agency for the specific reason that that keeps it more objective--the politicians can't screw around with the money supply or banking system to furthertheir own ends.

Answer 3

The FED is a governmental organization already. This is short for Federal Reserve Bank. It is overseen by the US Congress through the appointment of the chairman and the regional governors.

We wouldn't want our money supply to be handled by Congress anyway. Adjusting the interest rates is a very delicate economic maneuver not to be taken lightly based on polls of public opinion.

Savers are always going to want higher rates while borrowers are always going to want lower rates. The rates would be fluctuated with the majority to obtain votes. That would be a huge mistake.

Answer 4

No, because the Federal Rerverse acts as lender as last resort. The reason for the creation of the Federal Reverse was because of Bank Panic of 1907. JP morgan had to bail out the banks because the banks did not have cash on hand for people to make withdrawls. The Federal Reverse system has its flaws, but abolishing the Fed will lead to problems like if a bank goes belly up no lender of last resort. The result is people cant withdrawl money because the bank does not have access to cash or liqiuty as the last resort.

Answer 5

No, the Fed is the last line of defense in a pending crash. They can do stuff like tweak the interest rate to keep us from going over the brink.

Remember, before the Fed, we had a horrible stock market crash in the 1920's, followed by a horrible worldwide economic depression.

Since that time, we've put in a few checks and safeties (the fed being one of them) to keep this from happening.

Bottom line: We still have stockmarket corrections, but we have economic recessions instead of depressions.

Answer 6

I would not worry about making another mistake. Just do exactly opposite of what the Bush Ladin Admin would do and you are ok.

Insanity is when you do the same thing over and over expecting a different result.

It is time to Impeach the chimp! Nothing else works!

Answer 7

Heck yes! The federal Reserve system makes money out of thin air. If you want to further understand how the federal reserve works:
http://video.google.com/videoplay?docid=-466210540567002553
The bankers pretty much run this world.
JFK wanted the "United States Note" and Lincoln wanted the "Greenback" But we see what happened there :(
Peace

Answer 8

The reason not to make it subject to partisan short term political aims would be..... to make it not subject to partisan short term political aims.

Answer 9

No, who would regulate the banking industry? Or do you want to leave it up to corrupt bankers to regulate themselves???

Answer 10

i vote that we should get to vote on how money is made... and that the money should be given to people who vote.