Forum

    Americans are revolting against big government like we haven't since our beginning.  There is growing opposition to bail-outs, stimulus, and gun control. People are taking a stand for freedom of speech,and we want less  government dominating our schools, and violating our property rights.  It is a very good thing that the citizens are finally rejecting big government, but I find that most of these freedom loving people are reluctant to apply the same philosophy to one of the most important things in our country:  our money.

    I guess, for most people, it must strike them as being *radical* to apply the same quest for freedom to the all important element of our economy, which is the banking system.  I have to admit that, until recently, I also thought it was a notion of extremism to consider abolishing the Federal Reserve System. I reasoned, like most of America, that only a far right lunatic would advocate abolishing the Fed.  I suppose it is because the banking system is so vast, and complex, and so vital to our very survival, and economic well being, that I had a natural propensity to resist any wide sweeping change to something so important.  Now I see that it's importance is all the more reason why it should not be entrusted to government.  Enter Austrian theory.

    The conservative backlash has led me to examine a whole different, but certainly not new, philosophy of economics: Austrian Theory of Economics.  I see it as philosophy of freedom.  The whole idea that we should have a small hand full of people in government pulling the strings on our economy from the Federal Reserve works against mother nature.  I'm sure most people agree that it is almost always a bad idea to go against mother nature.  Another very important point to bear in mind is that these so called experts in the Federal Reserve System are inherently subject to political motives rather than serving America best.  The absurdity of the Fed is further highlighted when we recall that the supposed purpose for it's creation, in the first place, was to smooth out the gyrations of the business cycle, from boom to bust, to boom, to bust.

    Economist of the “Austrian Theory” were among the few who predicted the economic meltdown that led us to the recession/depression of today (May/2009).  They argue that free acting people participating in the economy set interest rates, and savings and consumption to the most perfect levels possible, and when government (the Fed) thinks they know better, they only set the table for disaster.  If the Fed did their job perfectly, the result would be sound money, and a “natural rate of interest” that would prevail if all was left to mother nature,……… as if there wasn't any such thing as the Federal Reserve System. In other words, the best the Fed can hope to accomplish is to break even!  That offers no upside, and plenty of downside, which is exactly what we have had since its inception in 1913. Excessive debt, and bubbles, in credit and housing is a result of Federal Reserve policy.  As is the case in so many other instances, government causes, rather than cures our problems. The Fed does NOT break even. The *radical* idea would be to NOT replace the current, corrupt government ran banking system with free banking.