That does not mean that the Fed no longer controls the money supply however.
It’s not that the Fed doesn’t maintain influence, it’s that the amount of credit/debt in the system outside of US M3 and UK M4 is now appreciably more than any adjustment the Federal Reserve Banks can deal with using the tools at their disposal. So at the edges, where the action is, the Fed Banks no longer have any real influence.
US$7.4 trillion in the M2, banks have off balance sheet losses approaching 1.5% of the M2, SO FAR. The vehicles for the losses were partially off balance sheet, not reported to the Fed Reserve, the total value of the vehicles were also off balance sheet. Yet the banks were injecting credit into the market with the offbalance sheet values.
I never studied this enough, I suggest checking out shadowstats for more info regarding this.
I would argue that the Federal reserve is unconstitutional. No where in the constitution does it give private banks the right to control monetary policy. Thomas Jefferson himself warned that giving bankers that kind of power would be a recipe for disaster
Their policy of hyperinflation of currency has virtually ruined the dollar. Before 1913 and the Federal Reserve Act, the currency was stable and prone to little inflation. Since then there has been constant inflation