Is the Federal Reserve unconstitutional?

Question

Why or why not? What clause in the constitution allows it to exist?

Answer 1

The Federal Reserve System was created via the Federal Reserve Act of December 23rd, 1913. The Reserve Banks opened for business on November 16, 1914. Federal Reserve Notes were created as part of the legislation, to provide a supply of currency. The notes were to be issued to the Reserve Banks for subsequent transmittal to banking institutions. The various components of the Federal Reserve System have differing legal statuses.

A large and varied group of criticisms have been directed against the Federal Reserve System. One critique, typified by the Austrian School, is that the Federal Reserve is an unnecessary and counterproductive interference in the economy. Other critiques include arguments in favor of the gold standard (usually coupled with the belief that the Federal Reserve System is unconstitutional) or beliefs that the centralized banking system is doomed to fail. Some critics argue that the Fed lacks accountability and transparency or that there is a culture of secrecy within the Reserve.

Answer 2

It is 100% constitutional for a number of reasons.

1) Congress has the power to pass laws

2) Congress has the authority to "To coin Money, regulate the Value thereof..." per Article 1, section 8 (Ref: http://www.usconstitution.net/xconst_A1Sec8.html )

The final arbitor is the courts and they have consistently ruled that it is indeed constitutional

3) Congress pass the "Federal Reserve Act" to set up the Federal Reserve which it had the clear authority to do.

Answer 3

The same clause that allows rabbits to eat grass. The Constitution also does not allow cars or air planes, the are not mentioned so they must not be allowed. I think there must be some flaws in that sort of logic.
And tell me do you believe in Leprechauns, and do you believe in paying taxes?

Answer 4

Most people think the federal reserve is part of our goverment ---- it is not.
Do more reseach into this ------
Don"t forget to check into "Bank of America", and its' beginnings.
Read the book " The Prince" -------- This will get you thinking.
Check out the Dutch, in the early trading days ------.
Get a better understanding of what "money" is all about --- who prints it ? Who gets to borrow money ? How much interest on this "borrowed money" has to be paid back, and by whom?
Look into the "Rockafellows" around the turn of the 1900"s.
While you are at it ---- do some research into the I.R.S. ---- you may discover that it was "created" with-out a majority vote of all the States.
+++Spock+++

Answer 5

The clauses that authorize congress to make laws.

Answer 6

Yes.Congress alone has the power to mint coins and print money.The Fed.Reserve is not federal,nor does it have any reserves.

Answer 7

yes and it's evil.