In response to:

Can We Envision a World without a Central Bank?

Anthony305 Wrote: Sep 20, 2012 5:58 PM
Wrong. While the Fed is a consortium of privately owned banks, it is chartered by Congress, from which it gets its authority as the sole producer/manipulator of currency and credit. The President appoints the board of governors, who have control over the system. Basically, the Federal Reserve is a collusion between government and the banking industry, in which government is allowed to borrow far beyond its means to ever repay and at rates of interest much lower than a free market would demand; in return for this service the banking industry is rewarded with the power to produce as much currency and credit as it likes, guaranteeing that it can't go broke, regardless of how stupidly it loans and invests its money (bank bailouts anyone?).
Anthony305 Wrote: Sep 20, 2012 5:59 PM
And we get to pay the price, through an economy misdirected by artificial interest rates and ever-increasing prices, driven by production of money and credit "out of thin air" to cover government borrowing, bank bailouts, etc.

I’ve expressed concern about QE3 and other decisions by the Federal Reserve about monetary policy, but I have also admitted that it’s difficult to know the right monetary policy because it requires having a good idea about both the demand for money and the supply of money.

But this raises a bigger issue. The only reason we expect the Fed to “know the right monetary policy” is because it’s been assigned a monopoly role in the economy. But not just a monopoly role, we also expect the Fed to be some sort of omniscient central planner, knowing when...

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