More Transparency, A Stronger Dollar, Back To Gold!
Quite simply, the Federal Reserve is a significant contributor to the economic and financial hardship that we face today. The value of the dollar has declined more than 1/3rd since 2002 relative to other currencies, and even worse relative to tangible assets like gold. This translates into a significant decline in the value of our country’s wealth, which is a huge tax. This is occurring while wages are stagnating due to our worsening competitive economic policies.
The Fed has also contributed immensely to boom and bust cycles in the economy, done a very poor job in ensuring stability in the banking system, and along with the Treasury Department, has too many conflicting relationships between those who run the organizations, and the banks where they used to work. There has also been a concerning lack of transparency in how the Fed has operated some of its monetary policy programs.
The dollar also holds the position of being the world’s reserve currency, which many other countries wish to change because of our irresponsible spending behavior. If this happens, it could trigger a global depression that could challenge or exceed that of the 1920s and 1930s.
Fixing The Problem
What the Fed is doing is not working and should not have their powers increased. I support a number of immediate steps:
(1) More Transparency – supporting a bill sponsored by Ron Paul, which is H.R. 1207, calling for more transparency and S.604, The Federal Reserve Sunshine Act.
(2) Remedy Structural Problems In Our Economy – the Fed has used monetary policy to artificially pump up our economy in order to mask real economic problems that make the U.S. less competitive, which has contributed to more boom/bust cycles.
(3) Reinstate A Monetary Anchor Like Gold – evaluate options to stabilize prices and the value of the dollar, such as a return to a monetary benchmark like gold, a physical, liquid asset that cannot simply be produced out of thin air. The only reason for going away from the gold standard in the first place was to enable deficit spending, and we know where that has gotten us
The bottom line is, the Federal Government has been the one robbing the store, and the Federal Reserve has been one of the guns enabling them to do it. As private citizens, we are expected to live within our means, without the ability to simply print more money, and we must hold our Government to the same standard.