I'm probably doing the movement an injustice, but I think I'll set this one aside.... I love the idea of these types of messages on money, circulating!
I'm all for ending the Fed, but only if they promise to bring back Silver Certificates, Gold Certificates and US Notes. I'm bored with nothing but green seals.
As far as I can see, the Fed was a mistake from the beginning, inevitably leading us to State run banks.... the seeds have been sprouting for a while now. I wonder how the economy would be affected if Madoff's money was retrieved from the Caymans and pushed back into the system.... there I go, in dreamland again...
as much as it 'might' not be a good idea.... it will never disappear. its cheaper and easier for the govt to back money with nothing, then to back it with gold or silver. bad idea or not... its not going anywhere.
Give the Fed some credit and don't confuse the Fed's purpose with poor government decisions. None of us here have to contend with some of the problems that the Fed solved. When's the last time someone here had to deal with a Broken Bank Note. How many people here realize that the Banknote Reporter got started as a publication to help Merchants recognize which notes are current and valid and which notes are broken, invalid, counterfeit, etc... As much as we love the variety of the notes from the 1800's, they did pose a nightmare for many merchants. For a merchant that would have an average transaction of less than $5, being presented with a $50 or $100 was a tough decision. Having not seen an example of the latest $100 legal tender in person, how do you know this one is real or fake. Even if you trust the customer, they may have been the one who was duped. Remember, counterfeit notes are an expensive variation on the Hot Potato Game. I won't even try to address the pro's and con's of how the Fed has managed to stabilize the dollar, yet make it possible for even the poorest of Blue Collar Workers to make interest off of their savings. Many things that the Fed has done, could have been done better, but the Fed has had a net positive effect on the value of the dollar.
From http://www.lewrockwell.com/orig/englund2.html : I find it strange that upon looking at historical charts from about 1800 to before the Federal Reserve was created nearly 100 years ago, that overall inflation until then as a whole was low (some would say practicably non-existent) and prices on virtually everything were very stable. The exception of course being during the Civil War.
The quoted statement is literally true, but very misleading. It would be more correct to begin with "Since FDR's gold recall in 1933...", as that event is when inflation really became a semi-permanent feature of the economy. (Which, in fairness, was sort of the point--inflation looks pretty good when you're living through a deflationary depression. Or when you're afraid you're *about* to be living through one, hence why the Fed is creating a lot more dollars lately than they'd usually do....) Also, it's not really accurate to characterize prices before the 20th century as "very stable". Rather, prices had no particular direction over time--they seesawed up and down a lot, sometimes suddenly, but with a flat long-term trend. Those price swings are another thing the Fed's designed to alleviate; with its power to set interest rates and such, it's supposed to keep the economic bad times from getting *too* bad, and the good times from getting unsustainably good. And it's almost surely succeeding to an extent; the booms and busts we've seen after 1933 haven't been anything like as severe as some of those seen before. (On the other hand, the Great Depression itself was probably worsened by the Fed's well-meaning attempts to fix it, but they've gotten more experienced since then....)
Funny, because I get a different. A google search turned up this page. http://www.measuringworth.com/calculators/ussave/index.php I will not vouch for how accurate it is, but it looks accurate. Entering the following info. Invest $1 in 1913 in short term assets (treasury rates), and withdraw the balance in 2007, it calculates that you would have $23.12. Over $200 if you invested that $1 in longer term bonds or the stock market. Again, I'm definitely not a fan of some things that have happened at the Fed, but their creation made it possible for you to make money from your money without having to break your back. There are many things the Fed has done wrong, but I'm a firm beleiver that up until recent events, the Fed has had a net positive effect on our economy.
