My concern is not with stated purposes, but with results. The Fed is a direct cause of the Great Depression. It is also a direct cause of the current economic climate. Nobody is perfect and that’s why central planning fails. Why would financial central planning work any better than fiscal?
The FDIC exists to stop bank runs. It might be better to simply force banks to publicly report their financial health and let depositors buy their own insurance. My point is that if you believe in the free market you don’t turn to government as the first choice in solving problems.
Government is the problem. I’m not an anarchist. I want some government. We have too much now, way too much. If the federal, state and local governments were 80-90% smaller the Fed might not be so bad. As it is, the Fed is also a direct cause of bigger government.
Is there a free market system alternative available? Yes, and there was well before the Fed. They’re called bank clearing houses and some of them illegally “printed” money during runs and deflations. It was a natural outcome, but maintained the competitive limitations a free people would want.
in 2008 or so,
a long wave hit the shore
housing has bubbled, there is too much everything
the FReserveSystem cant fix that