The Fed, created to shore up capitalism, has become an instrument of government economic management not so different from a socialist planning board: a tiny handful of powerful people attempt to fine-tune the entire economy. Its main mission has become continually goosing economic activity through infusions of new cash to maintain the illusion that good times will never falter.
The result isn't stability, but one economic bubble after another.
The Fed's manipulations fit well with President Obama's "stimulus spending" efforts. But neither seems to do the trick. This post-recession "recovery" is among the weakest ever. Japan's central bank tried the same stimulus for the past 15 years, since its economic crash. That didn't work either.
Instead of following Japan's example, we should learn from Canada. The Canadians had no central bank when the Great Depression began, just private banks issuing currency backed by gold. During the 1930s, not even one Canadian bank failed. Thousands failed in the U.S.
The massive bank bailouts a few years ago -- taxpayer money showered on the richest institutions that have ever existed -- are based on the assumption that those banks are "too big to fail."
It would be more accurate to say that those banks and the Federal Reserve that dominates them are too big and too powerful, so much so that they risk dragging us all down with them if they fail. No dozen people should be granted so much power.