End the Fed: An Illegal and Destructive Enterprise

A mere year after its founding, the Report of the Comptroller of the Currency said that with the advent of the Fed, financial panics such as what happened in 1907 would "Seem to be mathematically impossible." Claims that financial crises could be avoided by the Fed's provision of an elastic currency transitioned over the past 110 years to claims that the Fed would provide stable prices, full employment, and ultimately complete macroeconomic and financial stability.

Prices can never truly be averaged into one number that scientifically measures the level of all prices.

If people demanded to hold more money, they would satisfy their demand by spending less and selling more consumer and producer goods, thereby lowering overall prices and increasing the purchasing power of money.

We do not need a Fed managed price inflation target, we merely need sound money - money free from government manipulation.

The amended Federal Reserve Act that is part of the Federal Code, the current law of the land, says that the Fed is mandated to "To promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates." How well has the Fed maintained price stability during its almost 110-year tenure? Not well at all.

Relying only on its own wisdom and character, the Fed has overseen a 675 percent increase in consumer prices.

Fed Law-Breaking The main reason for increasingly higher prices is that the Fed has made its peace with breaking the law.

How so? Well, despite its legal mandate to promote stable prices, the Federal Reserve explicitly targets a 2 percent rate of annual price increase.

Now, the Merriam-Webster dictionary defines stable as "Not changing or fluctuating." Stable prices mean prices that are increasing at a rate of 0 percent a year.

The Fed explicitly targets an annual rate of price increase of 2 percent.

Price stability has mutated from a policy of 0 percent price increases to an average of 2 percent over time.

https://spectator.org/end-the-fed-an-illegal-and-destructive-enterprise/