Posted by
Tim Blessing on Monday, March 17, 2008 7:15:05 PM
Is the Federal Reserve necessary or a necessary evil?
The United States has had three central banks throughout its existence.
The Bank of the United States that was terminated by Andrew Jackson and a depression followed shortly thereafter.
A Banking System set up by President Polk in the late 1840s that lasted, until the time of Woodrow Wilson.
Woodrow Wilson set up the Federal Reserve, which has lasted to this day.
In 1929, the Stock Market collapsed and the Fed tightened credit that caused the depression.
In 1980, the Fed jacked up interest rates to 21% that caused the worse recession since the 30s, but it purged inflation from the economy.
The United States has had the business cycle since its founding.
The Federal Reserve is the Banks Banker.
That mean's their job is to maintain stability in the financial services sector.
They are human so they are capable of error.
Right now, a lot of people are approaching our economic issues piecemeal.
I would get charts that measure every sector of the economy from Treasury, Commerce, SEC, and Labor Departments of every conceivable economic activity over the last year.
That way people could get a pattern or a trend line analysis of what's happening.
The Federal Reserve and its like minded agencies are a necessary evil in a contemporary capitalistic economy.
However, I hope Congress has the expertise to oversee these organizations particularly when a new man come's into power like Bernanke.
Powerful Supervision is as important as Powerful Debate like Hannity might say.