Quote Originally Posted by blazespinnaker View Post
... the fed has very little power.
Your claim doesn't seem right to me. I'm probably not the best person to state the opposite case, but I'll give it a go.

  • The Fed has helped start many recessions by raising short term rates enough to invert the yield curve.
  • The Fed has helped start bubbles by lowering short term rates, such as they did with the housing bubble.
  • The Fed plays a key role in the intentionally obfuscated funding of the nations debt (well less obfuscated recently, as they purchase Treasuries outright shortly after they are created.)
  • The Fed provides a powerful "Federal" front for the big banks.
  • The Fed helps (artificially) smooth out the reserves of its member banks, leading to increased systemic risk and the misallocation of resources that result from privatizing profits and socializing losses.
  • The Fed has played a key (unauditable!) role in the theft of Trillions of dollars this last year by banks "too big to fail."

Quote Originally Posted by blazespinnaker View Post
Did Alan Greenspan invade Iraq? No.
No, but he helped fund it. No nation goes to war without funding.

Andrew Jackson was right to oppose a national bank. President Wilson was right when he concluded, near the end of his life, that his biggest mistake was to create the Fed.

Banks should be small enough to fail, too small to obtain regulatory capture, and competitive businesses. The Fed has played a key role in elevating JPMorgan and similar banks to a level that is now more powerful than the federal government in critical ways.