This Saturday, the 22nd of November, the End The Fed rally will be taking place all across the United States. The rally(rallies) are for more than just publicly expressing the desire some people have to end the federal reserve, but to rally FOR sound money. Basically, there will be a rally outside of all the federal reserve banks and federal reserve offices in the United States. In 39 cities, people will gather to voice their support of sound money, and an end to the failed monetary system we have been pursuing. Ron Paul will be speaking at the rally in Houston, and there will be other speakers throughout the country at the rally sites.
The issue at hand is that most people in the United States take for granted that a central bank is needed and necessary. It has been around for decades, and for almost all it has existed their entire lives. It came into being in 1913 through the Federal Reserve Act. For a long article about the history and functions of the Fed, click here. It is believed to be necessary, but in reality IS it necessary?
Here are five reasons for ending the Federal Reserve:
- The Federal Reserve Causes Inflation
Inflation is a tax - even Bernanke (Fed Chairman) will admit this.
The Cato Institute says:
Blame for our nation's erratic inflation, then, belongs squarely on the shoulders of our nation's monetary authority. The Fed's actions are responsible for the rate of growth of the total stock of dollars, and hence are responsible for the rate of dilution of the purchasing power of each existing dollar -- the rate of price inflation. Changes in the willingness of the public to hold onto various forms of dollars, or changes in banking practices, may temporarily divert the rate of inflation from its appointed path, but over the longer haul (say, six months to a year) the predominance of the Fed is virtually complete. Other explanations of persistently rising prices simply do not wash.
Check out the full analysis here.
- The Federal Reserve is Unconstitutional
For this one I thought a video would be appropriate. The video (at the bottom of the page) is excerpts of Congressman Ron Paul (R-TX) from the documentary "FIAT EMPIRE - Why the Federal Reserve Violates the U.S. Constitution."
It is well-known that the Federal Reserve has meetings behind closed doors. The transcripts of their meetings are released only five years after they happen. What is the Federal Reserve so scared about? The Joint Economic Committee Study titled "Transparency and Federal Reserve Monetary Policy" that happened ten years ago explained the benefits of more transparency from the Federal Reserve. But, sure enough, we have yet to see that transparency come to fruition.
- The Federal Reserve is to blame for the current financial crisis
The Federal Reserve, through setting interest rates that did not reflect the true market, led to the financial collapse we have seen now. If the market was allowed to set interest rates, we would necessarily have a much truer rate when banks lend to one another as well as to people/institutions. Their solution is intervention into the private market, and to prop up companies that otherwise would fail. This creates an incentive problem for companies, and does not allow the market to even itself out.
- Money Issuing Power
See Inflation. Also, the Fed is an independent, private bank. We do not elect the officials who run it, yet the choices they make affect our entire monetary system. We cannot hold them accountable for their actions, because we the people have no (or extremely) limited say in who gets in (and who gets kicked out).
I hope to do much more investigation into the central banking system and see what I can find out. This Saturday should be a great day for exposing the shortcomings of our current monetary system, and I will post some videos from the different events soon after they occur.