Here’s an interesting point of agreement between the Tea Party and the Occupy movement – both sides want to end the Fed. The left hates banks and the right hates government intervention, but neither side can present a realistic alternative. Returning to the gold standard is a fantasy. As long as we have a fiat currency, we need a central bank to manage it. England has one, and so do China and Europe.
The Fed’s only job is to manage the money supply, with attention to exchange rates, inflation, and unemployment. That’s difficult enough. History will show that Chairman Bernanke averted a depression through correct application of quantitative easing. Now he is forcing banks to lend, and reducing mortgage rates. This is good monetary policy. The problems have come from fiscal policy, for which Congress is responsible.
The movement’s main concern is that moneyed interests have corrupted our leaders in Washington. That seems like a pretty good argument for keeping the Fed independent, and free from political interference.
