End the Fed?

In his book, End the Fed, Ron Paul argues that the Federal Reserve system, not money, is the root of all evil. He argues that the Fed causes all sorts of trouble, from wars to depressions to economic bubbles. This is in line with what Thomas Jefferson said about paper money leading to tyranny. Ron Paul goes on to say closing down the Fed would halt the decline of the dollar, slow down the welfare state, restore Constitutional government and more. Read a review of this book at this link to an October 2010 review by the Washington Post: http://views.washingtonpost.com/leadership/books/2010/10/end-the-fed.html

And yet the Fed views its role as a positive one; in the July 22, 2010 article in the Washington Post,Federal Reserve ready to step in if economy falters again, Bernanke says,” the Federal Reserve Chairman states the Fed would take further action if necessary to keep the economic recovery on track. However, the Washington Post reports that “Financial markets tumbled on Bernanke’s testimony.”

Quoting from The People’s Guide to the United States Constitution:

“Section 8. The Congress shall have power…”

“To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights [such as ounces, pounds, etc.] and measures [such as inches, feet, yards, acres, etc.];”

“To coin money” means literally, to make coins. The authors of the Constitution had lost confidence in paper money during the Revolutionary War, but expected that banks would issue paper money that could be redeemed in gold or silver.”

In 1913, the U.S. Congress passed a law that delegated the right to create money to the Federal Reserve System. This unusual mixture of public and private ownership is directed by a Board of Governors, located in Washington, D.C. At the next level are twelve Federal Reserve banks, which are legally private corporations, whose stockholders are commercial banks that are members of the Federal Reserve System. The President of the U.S. appoints the seven members of the Board of Governors of the Federal Reserve System, and the Senate must confirm them. They serve fourteen-year terms. The Board of Governors supervises the operations of the twelve regional Federal Reserve Banks and has a major influence on the United States’ financial system.

What is your viewpoint on the Federal Reserve system? Keep it or lose it?