How do you, “End the Fed”?

There has been a resurgence of interest in the movement to End the Fed and it is a topic whose time has come. However, there are a few important things that need to happen first, in order to rescue our monetary system. I say this not to discourage or disparage those who have championed this cause and who have worked diligently to bring awareness to it, but rather to hasten its happening.

First, to those who have little or no understanding; what is the Fed? The Fed otherwise known as the, The Federal Reserve System (also known as the Federal Reserve, or  the Fed) is the central banking system of the United States. It was created on December 23, 1913, with the enactment of the Federal Reserve Act largely in response to a series of financial panics. Congress set three key objectives for monetary policy being, maximum employment, stable prices, and moderate long-term interest rates, in accordance with the Federal Reserve Act. Over the course of time its role has evolved and grown to include maintaining our nation’s monetary policy, supervision and regulation of banking institutions and provide financial services to the US government and foreign institutions.

The greatest arguments against the Fed are (or should be) is, it’s a hidden tax. In other words the Fed’s unlimited ability to print money with absolute impunity with no need of backing is inflationary and essentially a hidden tax to all Americans by devaluing the purchase power of the US dollar.

The second greatest argument against the Fed is its enslavement of the federal government and ultimately the American citizen to insurmountable debt. The US government doesn’t print money the Federal Reserve does. So when the US government wants to borrow money for entitlements, war or bailout failing banks and businesses, it does so by going to the Federal Reserve where they fire up the printing presses and print Federal Reserve Notes in exchange for IOU’s, US Treasury Bonds (more printed paper). The national debt is currently at a point where it is almost virtually impossible for the current economy’s ability to repay.

The Federal Reserve is not part of the U.S. government.Essentially it is a private bank which exercises tremendous power and authority over our monetary policy with very little congressional oversight or accountability. It has been said the Federal Reserve is more powerful than Congress because of their ability to control the money supply, interest rates and the US governments’ ability to borrow money. This much control by private citizens over our elected representatives is not only dangerous but goes against the very nature of our form of government.

Reasonable people can agree that the Federal Reserve as it currently exists is not a good thing for the long-term economic stability of our country. But, how to do it? How can we eliminate the Federal Reserve without causing a financial collapse of an already fragile economy? The answer is before you eliminate the Federal Reserve is you must have something to replace the necessary functions of the Fed.  As a staunch supporter of state sovereignty, from my perspective it would be the creation of a State bank which would perform the necessary functions of the Fed while maintaining state control over their own monetary policy. Not possible you say; the truth is there already is a State Bank. The Bank of North Dakota is the only state-owned bank in America and was established in 1919. As I have said often, “the most important step to state sovereignty is fiscal independence and fiscal independence requires a state run financial institution. This is where I would start in order to, “End the Fed”.