The Fed should never have been started. Central banks are set up to give government a way around honest money (gold). From E.J. Antoni and Peter St. Onge at The Epoch Times via zerohedge.com:
Every major economic downturn of the last 110 years bears the mark of the Federal Reserve.
In fact, as long as the Fed has been around, it has swung the economy between inflation and recession. Yet Americans, surprisingly, have tolerated it.
But we shouldn’t expect that to go on forever. We had three central banks before the Fed, and confined each to the ash heap of history. The problems inherent to central banking are cause to scrap the Fed as well.
Central banking dates to 1694, when the Bank of England was founded for the purpose of creating the hidden tax of inflation to provide cheap money to government—above all, for Britain’s many foreign wars. In exchange, the central bankers were paid well with interest.
Like any government-favored bank, the Bank of England lent money it didn’t have, lending far more than the silver in its vaults. The British government endorsed this fraud because the king and Parliament wanted the money.
But the fraud went further still: The Bank of England was allowed to use its new government bond holdings to back private loans, which meant creating even more money with no silver behind it to lend to private banks. This, too, earned interest, even though the money was created out of nothing.
