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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: ChinuSFO who wrote (121029)	9/18/2012 1:36:32 PM
From: RetiredNow	Respond to of 149317

You make a good point, but the premise you are using is flawed. I understand that the Fed was intended to be apolitical. However, then you go on to compare the Fed to the Supreme Court, which is a branch of government. There are is a problem with this line of thinking, as follows: * The Fed is not a Constitutional construct, but rather, was created as a delegation of authority from Congress. The Constitution outlined only 3 Branches of Government: Congress, Executive, and Judicial. Congress is the only entity that has the Constitutional authority to "coin money and establish weights and measures". So the creation of the Fed as an apolitical entity was not really Constitutional. The Fed must be held accountable by ELECTED officials, in other words Congress. However, as past efforts have shown, even auditing the Fed nowadays requires an act of law. That's a real problem. So what I'd like to see is ideally an elimination of the Fed and a return to the free market setting interest rates. Failing that, I'd like to see at a minimum a revision of the Federal Reserve Act to limit their authority to currency stability only. This duel mandate of theirs is a recipe for Central Economic Planning and malinvestment, not to mention the ongoing destruction of capital markets as the Fed crowds out all other players in their pellmell efforts to set every security market price to their liking.