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So The Federal Reserve... "End The Fed"

by synchronicity 10/19/2011 - 6:59 pm

During my time at Occupy Denver I have had many conversations with people carrying signs saying End The Fed.  I suggested that this is the only monetary system people have had in their lifetime and to just suggest ending it without talking about a better system seems a very negative way to go about getting the desired results.

I don't love the idea of a central banking system with the government in the state it is currently in.  However if the majority were to be inspired to wake up and reclaim their political power and restore some form or real democracy I could support it.

Either way the Fed 'as we know it'... needs to be ended.

I recently had read the bill HR 2990 by Dennis Kucinich in which he brings the money making authority back to congress along with some job creating measures.

http://www.monetary.org/wp-content/uploads/2011/10/HR-2990.pdf

And then today there was this from Bernie Sanders

http://sanders.senate.gov/imo/media/doc/101911%20-%20THE%20SANDERS%20REP...

also covered on Dylan Ratigan's show:

http://www.msnbc.msn.com/id/3096434#44965331

 

Learning that 75% of the board of directors of the Federal Reserve had direct ties to financial institutions bailed out and benefited by monetary policy they oversaw has me ready to stand in front of the capital with my own 'End the Fed' sign today.  Other countries have healthier monetary systems, health care systems, education systems... why is our country such a mess???

And I want to end with this.

When Secretary Paulson offered his 3 page bailout plan that had a get out of jail free clause attached for himself back in the fall of 2008 he was on a Sunday news program being interviews and he said  'I had to wait for it to get this bad so that I could ask for this.'

And the 'too big to fail banks' are even bigger now.  There is nothing to stop them from doing everything they were doing before.  And the weak Dodd/Frank bill that is being villified on by the republicans is being fought tooth and nail as try not to fund its implementation and tout that what this country needs is more deregulation.

 

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Other countries have healthier monetary systems...

Right. That's why Europe and the UK are doing so well with their lovely austerity packages.

Please don't end the Fed. You can reform the Fed, but ending it would be very, very bad. The progressive reformers who fought for the equivalent of a central bank in the early 1900s had good reasons. Before the Fed, there was no elasticity in the currency and no lender of last resort. Routine financial crashes often escalated into nationwide panics that sent the whole economy into a tailspin.

There were some debatable compromises that when into the structure of the Fed--particularly the regional banks--which might merit reform. We might, for example, convert the Fed into a true central bank, which most European nations have. But as I implied above, central banks are not necessarily more responsive to financial crises than the Fed.

Or think about it another way. Reforming the Fed basically means giving more authority to the federal government, i.e. Congress or the President. In establishing Congress's economic stewardship, you may recall the enlightened debt limit debate. As for the president's economic stewardship, I have two words: President Perry.

So in other words, watch out what you wish for.

by Michael Wolraich 10/19/2011 - 7:44 pm

I, of course, agree that it would bad to have a centralized banking system with our current state of government but believe that must change undoubtedly.  Regardless of how long it takes the majority need to reclaim its political power and restore some form of real democracy in our government.  From that point I do think a centralized banking system can work. 

As far as europe goes they are dealing with similar issues of corruption so one system or the other does not prevent corruption. An active majority rule that is able to address corruption through law is the best we can do.  Right now we could not get the congress to end the fed or any other corrupt banking practice no matter how many of us support new laws to do so... we see that unfolding before our eyes.  To simply tout reform with the government 'as is', is naive.  But to leave things as they are in with the Fed and just reform may never work  either. 

The only way to get any real change, in my view, to any of what is going on requires a massive long term effort on the part of the majority of Americans to reclaim political power, get money out of politics (to the extent we realistically can), undo the effects of Citizens United, and a national movement for all federal elections to be verifiable along with working to overcome the effects of all of the voter suppression laws that have been passed recently so that all eligible voters can register and vote. 

It will take time before we can change what is happening and I certianly don't advocate ending the fed before doing these things but ending the fed may very well be required in the end.

by synchronicity 10/19/2011 - 9:34 pm (re: Genghis)

http://occupynh.org/forum/viewtopic.php?f=4&t=104#p404

http://rortybomb.wordpress.com/2011/10/13/occupy-wall-street-monetary-policy-and-the-federal-reserve/#comment-19105

by Dan Kervick 10/19/2011 - 9:03 pm

I like your approach personally.  It seems it would be healthy and less destabilizing just energetically to the economic world overall.  However the serious implications of fraud and corruption within the Fed itself is also so great that some, particularly in our country, may in the end, depending on what is finally discovered require that it be ended in order to trust our monetary system.  I am not savvy enough about such things to see clearly how we could best resolve this.  None of this will matter if the majority does not reclaim its political power.  Currently those corrupting our system and abusing us are actually causing the pain that just might make that happen.  I hope.

by synchronicity 10/19/2011 - 9:32 pm (re: Dan Kervick)

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