Should the Federal Reserve be abolished ?

Question

Our currency was once backed by gold ,and our currency
was once backed by silver .Our currency is low in value
compared to the yen .The Federal Reserve is not a
Federal agency ,and it is controlled by the wealthiest
families in the country .If the Federal Reserve prints
more currency ,our currency decreases in value .If the
Federal Reserve decides to print 2 or 3 times the amount
of currency in circulation ,we will be in economic trouble .

NGC6205 ,you really should calm down .
You can not tolerate my honest
opinion about the Federal Reserve .
By the way ,the Federal Reserve is a
private bank ,and there is a limited
supply of currency in circulation .
I have a bachelor's degree ,and I do
know what I am talking about .The
Federal Reserve should be replaced
by a central bank that is controlled by
Congress .Why do you regard the
Federal Reserve as sacrosanct ?

Answer 1

Well, yes. Printed money is on it's way out: plastic and computer based funds will probably replace it all within 20 years. However, there are a whole lot more government agencies on my hit list before the federal reserve.

Answer 2

And replace it with what? Who is going to make decisions about monetary policy? Please don't tell me you want politicians to make monetary policy.

Also, you need to get your facts straight. The Federal Reserve is not controlled by the wealthiest families in the country. That is conspiracy theory nonsense. The Federal Reserve is controlled by the Board of Governors. Members of the Board of Governors are appointed by the President and confirmed by the Senate.

Stock in the Federal Reserve district banks cannot be owned by individuals, corporations, or foreign governments. This is in accordance TO LAW. National banks are REQUIRED to SUBSCRIBE to stock in Federal Reserve district banks and the amount of their subscription is set to a percentage of their capital. State banks can also become member banks of the Federal Reserve system if they meet certain requirements.
Law covering the Federal Reserve system - http://www.law.cornell.edu/uscode/html/uscode12/usc_sup_01_12_10_3.html

The Federal Reserve doesn't print money. The Bureau of Engraving and Printing does. The Federal Reserve controls the money supply by adjusting interest rates and through open market operations. Here is an interesting fact for you. At the end of 2006, there was only about $783 billion in Federal Reserve note (dollar bills) in circulation. The total money supply is much more than that. Do you know the reason? It is credit. Every time you take out a loan or use a credit card, you have contributed to an increase in the money supply. If you don't know what I'm talking about, take a money and banking course in college.

Finally, here is another interesting fact that I know your conspiracy theory website or movie didn't tell you. The Federal Reserve RETURNS EXCESS INCOME TO THE U.S. TREASURY. Another fact missed by conspiracy theories, the Federal Reserve IS AUDITED EVERY YEAR.
Also, the Federal Reserve makes ANNUAL REPORTS TO CONGRESS.
http://www.federalreserve.gov/boarddocs/rptcongress/
http://www.federalreserve.gov/boarddocs/rptcongress/annual06/default.htm
http://www.federalreserve.gov/boarddocs/rptcongress/annual06/pdf/audits.pdf

Edit: I don't regard the Federal Reserve as sacrosanct. I do, however, know how the Federal Reserve works. I research laws and have an understanding of the economy and economic factors. BTW, I have a Bachelor's degree also. I also have two Master's degrees. The Federal Reserve is not a private bank. It is structured similar to a private corporation but it is governmentally controlled. There are no private shareholders of the Federal Reserve. As I mentioned in my answer, the member banks are required by law to "subscribe" to shares of the Federal Reserve and the amount they are required to subscribe to is set to a percentage of their paid-in capital. Did you even bother to read the law? Did you read the audited financial statements? Did you see the payment to the U.S. Treasury?

Answer 3

Per your question the federal reserve "is controlled by the wealthiest families in the country".

If that's the case - why would they want to reduce the value and spending power of their own money?

Answer 4

Contemplating change is useful and necessary in a democracy. However, it is really important to ensure one is working from facts and not heresay nonsense.

NGC6205 has provided you rock-solid information that you can verify from numerous authoritative sources.

The Federal Reserve System is a congressionally-chartered agency like the USPS and NASA. It is organized with a 100% government agency at the top (the Board of Governors), and branches beneath them. (http://www.federalreserveeducation.org/fed101/structure/ )

The Board of Governors are all appointed for 14-year terms by the president and confirmed by congress. It operates per it's charter and laws set by congress. it is overseen by congress. There is no structure or mechanism for private ownership at this level. Board members are forbidden by law to have any economic interest in a private bank. (Ref: Title 12 chapter 3 of the U.S. Legal Code)

Ignorance is curable. Stupidity is not. Research the facts for yourself.

Answer 5

Oh, you don't have a better way so you want to destroy it. What are you going to replace it with? Congress?

Answer 6

Hillary, is that you?