I'm sure there are some that don't agree that the Fed should be closed. So I'm curious, what reasons can you come up with for why it shouldn't be closed?

so funny this has been so clear from at least 6 years ago and im not Evan American only all the content about the fed and mony was considered conspiratorial

well people assume the federal reserve system is normal, just the same as they assume it's federal (it only has a slight connection to anything but the issuer of treasury bonds)

Having super powerful banks isn't bad. just in and of themselves. However, take the gasoline speculation. That situation gouged everyone in the USA who paid for 4$ a gallon gas, but it was 100% manufactured. Stuff like that.

I don't trust the federal government directly to regulate monetary policy. While I'm sure that policy makers and politicans would have learnt from past mistakes, history shows that until an independant federal reserve system came into effect, inflation was regular, in double digits and vastly uncontrollable in most developed countries. Do a search for it, there are graphs of inflation levels against time for various countries that clearly demonstrate this.

That's not to say that low interest rates have not contributed to ballooning out the money supply, but I would argue this is an error of judgement rather a systematic error of policy. If anything though it is the fact that investment banks, specifically those not subject to scrupulous levels of prudential supervion and have been allowed to leverage as high as 50-1 that has expanded the money supply. Had sufficient regulations and supervision been in place, other industries besides the financial sector might have collapsed and rightly so for their near-sighted gambling, but the financial sector itself would have remained in tact and not taken such a massive toll on credit availability across the world.

In addition to that it's not that I don't have qualms about the potential, and seemingly inevtiable relinquishing of US debt by China as faith in their ability to pay back their loans plummets, acting as a self-fulfilling prophecy and depreciating the US currency massively. I'm quite certain though this at least won't happen in the near future, or while China and much of the rest of the world is dependant on the US as the consumption engine of the global trade network to keep its industries and economy afloat.


>> ^Flood:
I'm sure there are some that don't agree that the Fed should be closed. So I'm curious, what reasons can you come up with for why it shouldn't be closed?

Ok, I fully and completely agree with his speech. My thoughts exactly. Well said.