12/09/2010

"More Than Half of Americans Want Fed Reined In or Abolished"

When I first read the headline for this Bloomberg News piece, I thought this is good news. Unfortunately, what is being discussed here, eliminating the Fed's independence, will make it even more political. What would be nice if the government abolished the Fed and let banks issue competing currency. Competition would do more to restrain aberrant money supply behavior than any government can be trusted to behave.

The survey, conducted Dec. 4-7, also shows deep skepticism, especially among Republicans, over the Fed’s Nov. 3 announcement that it would buy bonds in an attempt to bring down unemployment and prevent deflation. More than half say the purchases won’t help the economy.

The policy, known as quantitative easing, was the target of criticism in Washington and overseas. That prompted Fed Chairman Ben S. Bernanke to appear in an interview on CBS television’s “60 Minutes” program on Dec. 5 to defend his actions.

Across the Spectrum

Americans across the political spectrum say the Fed shouldn’t retain its current structure of independence. Asked if the central bank should be more accountable to Congress, left independent or abolished entirely, 39 percent said it should be held more accountable and 16 percent that it should be abolished. Only 37 percent favor the status quo.

In a previous poll, conducted Oct. 7-10, 35 percent of Americans said the Fed should be radically overhauled, while 8 percent said it should be abolished.

Republicans and independents are more likely to support ending the Fed, with 19 percent of independents, 16 percent of Republicans, and 12 percent of Democrats wanting to do away with the central bank. Among those who identify themselves as supporters of the Tea Party movement, which wants to rein in government, 21 percent want to abolish the Fed. . . .

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Blogger cory said...

If you think the Fed is independent, you really ought to do more investigation. The Federal Reserve is beholden to funding Government deficits as well as bailing out their bankster friends and whatever other corporations they see fit. They collude with the Treasury. Their officers are all industry insiders. They control the value of our money and answer to no one but their friends. They are independent only when it comes to answering to the taxpayer, not to their special interests.

Having a central bank is a recipe for disaster precisely because one central planning entity makes monetary decisions for the whole country. A small board of people has control over hundreds of millions of livelihoods. It creates market distortions and bubbles, it devalues my assets and wages for my labor, it steals from the common man to pay for its elite group of beneficiaries.

Central planning has never worked, otherwise the Soviet Union, the Berlin Wall, and a host of other central planning icons would still exist today.

The reality is, if there was no central bank, Government couldn't spend more than it took in. Wars couldn't be financed. Inefficient businesses wouldn't be bailed out, would go bankrupt, and have their assets bought by more efficient and successful businesses.

The central bank is one of the most inhumane institutions mankind has ever created. It creates moral hazards, and prolongs suffering more than any other institution out there due to the consequences of its actions.

Forget bank issued currency. Free market money is the only answer. End the Fed. Repeat legal tender laws.

12/09/2010 1:54 PM  

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