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To: pater tenebrarum who wrote (35673)	12/22/1999 8:13:00 AM
From: jttmab	Read Replies (1) \| Respond to of 99985

i am a strong proponent of abolishing the Fed btw..... A simple, straighforward but thought provoking statement...The fed performs a number of functions and on the face of it, one could leap to the conclusion that you might mean that all the functions of the fed should be abolished as well. But the Fed, in addition to setting the discount rate does a few more things. They issue coin and currency and establish a process for replacing currency. They also regulate financial institutions and set up reserve requirements among other things. They act as the bank for the Fed government and buy and sell government securities. They loan funds to financial institutions that might be in "temporary" distress [when other private sources are unavailable]. So, if you really mean that the fed should be abolished and I think you do, then one would need to go through the list of functions performed by the Fed and decide whether each of them is a valid [or necessary] function and if they are, who would perform that role. Trivial example, issuing coin and currency. More complex function...setting the discount rate or without the Fed....would it be "better" for the financial institutions to set the interest rate among each other on a day to day fluctuating basis.... Another example, should "someone" establish reserve requirements for financial institution? Other functions performed by the Fed might be found at: woodrow.mpls.frb.fed.us jttmab