Specifically it states: “To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;”
Notice very few talk about the regulation of the value of foreign coins? It also says nothing about establishing a federal bank only that they can coin money and regulate the value.
In my opinion, there is no need for a lender of last choice - if the market will not lend then there is such a risk that reason indicates no lending should occur. This is directly what led to the housing crisis where lending was regulated to the point of mandating loans to those who should not have them.
In the case of government, the federal reserve is making loans to a government that is cash poor and should not be getting it without high interest rates. The only reason those rates aren’t in place is that they are attempting to prop up a currency which has been devalued due to their lack of concern of it’s value because they think they can continue to kick the can down the road forever.
My take is that what we're talking there is foreign exchange rates --something lots of folks talk about..
...no need for a lender of last choice...
That's where I disagreed w/ the article. imho before 1913 congress did a poor job complying w/ its mandate to "coin Money, regulate the Value thereof" considering we what we ended up w/ was massive price swings of double digit inflation for a year followed by double digit deflation. It's because most money is created not by government printing presses but by banks loaning money --and that means government regulation of banking becomes the only way congress can comply w/ the constitution.
