Abolish the Federal Reserve
25. Jan, 2009 
8 Comments
by Perry Willis, DownsizeDC.org
The stock market rises and then crashes. Housing prices soar and then plummet. The Federal Reserve causes these booms and busts by constantly expanding and contracting the supply of money and credit.
Credit expansion by the Federal Reserve increases the demand for producer assets and investment instruments. This causes bubbles in things like stocks and housing. When the Fed then contracts credit to avoid systemic price inflation the asset bubbles burst.
This is the history of the Federal Reserve — booms and busts, mixed with episodes of economic stagnation and high inflation like the 1970s.
Even before the Fed was created in 1913 government manipulation of money and credit caused repeated bubbles and contractions. One big source of this mischief was government imposed exchange ratios between gold, silver, and the U.S. dollar. When these hardwired exchange ratios didn’t match reality, problems ensued.
It’s important to recognize that economic perfection isn’t possible. Investors will always make mistakes. But we would expect these mistakes to be randomly distributed throughout the economy, and occur at different times. What causes a bunch of investment mistakes to cluster in particular sectors at a specific time, causing systemic problems?
Only government has the power to impose universal conditions on the economy, from the top down, causing investment mistakes to cluster, like they have in the housing market. The government can do this by passing laws and creating programs that favor one type of investment over others, causing a boom in those sectors.
But the Federal Reserve, with its monopoly control over the supply of money and credit, is an even more powerful mechanism for causing investment errors to cluster.
We need to get off the Federal Reserve roller coaster. We need to end centralized top-down control of the money supply and interest rates. We need a true free market in money and banking. We must abolish the Federal Reserve.
Congressman Ron Paul has a bill to accomplish this. It’s called the “Federal Reserve Board Abolition Act,” and a national coalition called “End the Fed” is working to bring attention to this bill.
Please use our quick and easy Educate the Powerful System to ask your elected representatives to co-sponsor the “Federal Reserve Abolition Act” when Congressman Paul re-introduces it in this Congress.
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“We must abolish the Federal Reserve.”
If “We” is meant to be the People (Americans) then We have absolutely no power to “directly” abolish the Federal Reserve.
Abolishing the Federal Reserve is a very bad idea anyway. Except it is a good political issue idea to feed to the People to cause disturbance and fighting among them. The only problem with the Federal Reserve is the Ownership of it; it is owned and or controlled by a foreign, non-American, entity.
Allan
It’s shameful to think that people could actually defend the Federal Reserve. It is not only unconstitutional, their actions are illegal. Our income taxes are taken to make interest payments on debt to these bankers. These bankers control our political system, government, economy, and the country as a whole.
According to the Constitution, the chosen currency for this country is to be controlled and regulated by our government, not an external, private party.
Yes, I speak of the same group of people that conned President Wilson into going along with it by them agreeing to handle his campaign and get him into office to sign the legislation into law.
Destroy the Federal Reserve and put the power back into the Constitution.
I’m totally in support of abolishing the federal reserve, but even if it existed under complete control of the federal government, it would still be awful for our economy.
The problem is that it has a monopoly control over money, it prints at will, and destroys the value of the currency. Putting it more in the control of elected bureaucrats in DC wouldn’t change that – they’d still be able to use it in the way it’s being used now. Freedom in money and currency would bring this beast down nicely.
The greedy Federal Reserve Fat Cat Bankers make me sick. You want to know who is to blame for most of the economic problems we are in today it is Comrade Greenspan and Czar Bernackie. These morons are wrong about every policy they pen yet we still listen to them in congress. Ban the Fed and put the dollar back on the gold standard. This will do a world of good. If you can only print as much money as you have gold then Billion dollar bailouts would be impossible. Then the free market can decide which banks and insurance institutions thrive and which ones should fail. Government has failed America. The Fed is about as federal as federal express. Ron Paul has the solutions. We need smart guys like Ron leading the way not Barney Franks and Tim Geitner. Good luck WE THE PEOPLE! Remember the U.S. government works for us not the other way around.
Derek – awesome comments here. I’m right with you on banning the fed. But, I’d go a little different route, and I think Ron Paul has mentioned this as well. Since so many people are in favor of using US dollars, and are afraid or resistance to metal currency (silver and gold), why not just removed the laws that making using gold and silver illegal?
Give people the free choice of what currency they want to use, and we’ll see what happens, right?
Instead of taxes being used to pay interest to the international bankers,
interest should be used to pay all the taxes.
http://www.notaxesnow.org