Federal Reserve???

To understand the value of the Federal Reserve, one has only to look at history and what it was like before 1913 (when it was created) and 1935 (when there was a signficant reorganization of power and responsibility)

History has shown that without a public central bank, large private banks will fill the void who are more likely to act in their interests than the country's.

Without a publicly owned central bank:

-There would be no national coordinated monetary policy. Each bank would expand or contract credit based on their immediate business needs, not the natons requirements.

- Smaller banks would be dependent on larger banks for credit extensions, currency, etc. History has shown that larger banks often consider smaller banks as competition and didn't care if they failed. (After 1935, the Fed was charged with looking after the overall health of the system)

- Before 1905, there was over 30,000 different currencies in circulation.

- In international monetary matters, the nations largest private banks would represent America

- There would be no elasticity to the currency. You would see more cycles of inflation/deflation, and boom/bust as we saw in the 1800s

- Banks would return to being audited soley by themselves in their shareholders interest. (After 1935, the Fed was charged with being the nations bank auditors to serve depositers interest as well.)

- Clearing of checks would go back to private clearinghouses often run by large banks. Without an impartial clearinghouse, decisions in the process would sway toward the private interests that control it.

So we really don't need a Federal Reserve if you prefer what the historical record has shown us.

I'm anti. It's neither Federal nor Reserve. It's just a racket that hasn't lived up to its expectations.

"For the first 137 years of its history, the US did not have a central bank. The nation then was plagued with recurring business cycles of boom and bust. For the past 94 years the Federal Reserve, the US central bank, has assumed the role of monetary guardian for the nation, yet recurring business cycles of boom and bust have continued, often with the accommodating participation of the Fed. Central banking has failed in its fundamental functions of stabilizing financial markets with monetary policy, succeeding neither in preventing inflation nor sustaining growth nor achieving full employment.

Since the Fed was founded in 1913, US inflation has registered 1,923%, meaning prices have gone up 20 times on average despite a sharp rise in productivity."

http://atimes.com/atimes/Global_Economy/JA30Dj02.h...

The FR are thieves; there is not really much good about it at all. http://video.google.com/videoplay?docid=-165688030...