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To: GraceZ who wrote (88800)	9/11/2007 4:42:32 PM
From: ahhaha	Read Replies (1) \| Respond to of 306849

It is good to see we're finally getting some intelligent observations about this critically important issue. I have handled all criticisms from the best the world has to offer for 30 years. In the final analysis they have all said, "well, of course you're right, but we can't do that here". Such a simple solution and one that doesn't undermine any of FED's powers. Doesn't even require trust or a change of salaries. In fact, enhances every function now existing at the Bank, and gets FED and the board off the eternal hot seat. That in itself would instill confidence. Also, concerning the coin biters and gold 'bugs, they would all be rendered irrelevant. Gold would remain extremely non volatile under a free market for money operational regime and would have no trend. Same with interest rates. All rates would converge asymptotically to productivity rate, around 2%. Long Tbond would be about 2.5%. Money would go into investment rather than into sitting in bonds or in banks.

To: GraceZ who wrote (88800)	9/11/2007 9:40:32 PM
From: Wildstar	Read Replies (4) \| Respond to of 306849

Still, I don't think the Fed should be abolished. The Fed has a place as it was originally created as a lender of last resort in a banking crisis, to prevent bank runs. Also, they are important during serious disruptions in the market for money, as in exogenous events like the 9/11 attacks where large portions of the clearing mechanism for transactions were disrupted because they were so centralized in lower Manhattan. The service they provided post 9/11 was important to restore function quickly to a market where time literally is money. Doesn't having the Fed as the lend of last resort distort the price of borrowing money?