Tuesday, September 29, 2015

The Federal Reserve: Audit, Reform or Abolish?

Richard Ebeling emails:

Dear Bob,

I participated in the September 29, 2015 “Libertarian Angle,” webinar sponsored by the Future of Freedom Foundation, with the Foundation’s president, Jacob G. Hornberger, on the topic of “The Federal Reserve: Audit, Reform, or Abolish?”

Like any government or government-chartered agency, as is the Federal Reserve, it should be subject to a public audit for accountability to the citizenry. But the more fundamental issue is whether America’s central banking system should be reformed or abolished.

The main theme of this week’s “Libertarian Angle,” therefore, is why any attempted reform of the Federal Reserve falls short of two inescapable facts: First, the system will always be open to abuse and misused for the benefit of special interest groups and those in political power who can gain at other’s expense through the creation of money and the currency debasement that results.

Second, and even more fundamentally, it is impossible for monetary central planners of the Federal Reserve – or any central bank – to have the knowledge, ability or wisdom to manage the monetary and banking systems better than a fully market-based alternative.

Thus, the discussion turned to how and why a free, private, competitive banking system would be far superior to our current central banking system that brings in its wake the recurrence of the booms and busts of the business cycle.

The webinar runs for about 35 minutes.



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