We should to get rid of the Federal Reserve.

Im sure everyone agrees, thank you for posting this debate and for the chance to become more knowledgeable in this topic. In the first round I will be addressing why The Federal Reserve System is important, and thus why it should be kept in place. In later rounds I will address my opponents criticisms on the system. Background on the Federal Reserve System [1]: The Fed's primary policy-making group is the seven-member Board of Governors. Appointed by the president and confirmed by the Senate, members serve for one fourteen-year term only. A member who is appointed to fill an unexpired term may be appointed for an additional full term. From among the seven members, the Board's chairman and vice chairman are also appointed and confirmed by the president and the Senate for four-year terms. Central banking system in the United States, the "Fed," established by the Federal Reserve Act of 1913 and comprising the 12 district Federal Reserve Banks and their 24 branch offices, the Federal Reserve Board of Governors in Washington, D.C., the Federal Open Market Committee, the Federal Advisory Council, and member banks owning stock in one of the 12 Federal Reserve Banks. National banks are required by law to own stock in the Federal Reserve Bank in their region. State chartered banks have the option of becoming member banks, although only about 1,100 state chartered banks have done so. As its name implies, the Federal Reserve System is a federal central bank, with operational responsibilities shared by the Board of Governors and the 12 regional banks. The Federal Reserve System regulates the cost and availability of bank credit through Monetary Policy decisions of the Federal Open Market Committee; sets the Discount Rate banks pay when borrowing from a Federal Reserve Bank; approves interstate banking mergers; supervises bank holding companies, and oversees international banking operations through agreements with other central banks I strongly urge anyone interested in this to read over the information on that site. The Federal Reserve is important because of its responsibility to carry out these four duties [2]: 1. Conducting the nation's monetary policy by influencing the monetary and credit conditions in the economy in pursuit of maximum employment, stable prices, and moderate long-term interest rates; 2. Supervising and regulating banking institutions to ensure the safety and soundness of the nation's banking and financial system and to protect the credit rights of consumers; 3. Maintaining the stability of the financial system and containing systemic risk that may arise in financial markets; 4. Providing financial services to depository institutions, the U.S. government, and foreign official institutions, including playing a major role in operating the nation's payments system. Monetary Policy - [3] Monetary policy is the process by which the government, central bank, or monetary authority of a country controls (1)the supply of money, (2) availability of money, and (3) cost of money or rate of interest, in order to attain a set of objectives oriented towards the growth and stability of the economy. 1. The Federal Reserve largely regulates monetary policy of the country discretely, without need to go through lengthy Congress approval. The other option, referred to as Fiscal policy, is the changes in the taxing and spending of the federal government. The process takes so long, that by the time it is set into place, the economy has already changed drastically. So although some may see this as giving The Federal Reserve too much power over the economy, it is much more a safety net, to balance out the economy. [5] 2. Simply put, there are many policies in place by Congress and The Federal Reserve to protect the "American People" from things such as bank 'bounce' loans, mortgage markets, and mortgage related fraud. Another major one, The Federal Reserve develops rules that your bank must follow to keep your financial records private. [4] 3. The Federal Reserve is largely in place to help neutralize the effects of inflation, and prevent a large-scale failure of banking systems. To help prevent inflation, they work mostly in the short-term hoping to effect the long-term and interest rates are often raised. [6] For other examples of how The Federal Reserve regulates short-term economic growth through repurchase agreements and treasury securities. [7] 4. Also simply put, The Federal Reserve offers financial services to your government, your bank, and in a sense you. Its the nation's central bank, and as such, is granted special privileges, and immense responsibility. I think it is also very important that I state this in round one. It is hard to say that The Federal Reserve is outside government control. That is very much like saying that the Supreme Court is out of government control. The Board of Governors is appointed by the executive branch, and approved via the legislative branch. Very similar to the Supreme Court Justices. The Federal Reserve works outside of government influence as much as The Supreme Court does. And lastly, I must ask my opponent, if he still thinks The Federal Reserve System should be abolished, to explain in some detail a possibly better system he may have come up with, and its advantages. [1] http://www.answers.com... [2] http://en.wikipedia.org... [3] http://en.wikipedia.org... [4] http://books.google.com... [5] http://faculty.etsu.edu... [6] http://www.house.gov... [7] http://www.econbrowser.com...