The Federal Reserve System

"The opposition in this debate is focusing on constitutional issues. When a bill is passed by Congress, signed into law by a President, and up held by the Supreme Court, that law is constitutional regardless of the morality, the examples that will be sited again of Dred Scot, Plessy v Ferguson, Citizens United, and Obamacare are all examples of immoral laws that were/are constitutional." The constitution did not allow for this, and no REAL ammendments were passed to make it so, hence my point still stands. "Another key point the opposition is getting wrong is the deferences between money, currency, and legal tender. The Federal Reserve does not have any responsibility with money, it only deals with legal tender. Legal tender is not addressed in the US Constitution, thus Congress can use any of the three clauses stated earlier to do anything that a President will sign. " This is not true, the tenth amendment of the constitution clearly lays out that if a power is not granted in the constitution, then the government does not have that power, so, congress will have to pass an amendment, get a 2/3 vote in BOTH the house and senate, then the president signs it, then the constitution is amended, then they can pass a legal tender act, then they can pass an order to print legal tender notes, they did not do this, they just got a majority vote and started printing. "As the opposition states "If I did that [create legal tender from nothing] my check would bounce and I would go to Guantanamo Bay." Almost correct, if you did it as a banker that is a member of the Fed it is fine, banks create tender everyday. Plus, counterfeits don't go to Gitmo that is saved for the most dangerous terrorists that threaten America." Now you see that is just it, the Federal Reserve allows this, but it has no power to make laws, not only that, but it does not have the legal privilege to exist, it not only breaks the law, it breaks the constitution. So my point exactly, why is it that banks are allowed to write checks on money they do not have and I cannon? Isn"t "Equal Justice Under Law" engraved on top of the Supreme Court? "The next point about the Fed is it role as a vanguard against economic activity." "Moderates economic swings As for economic swings, when comparing pre-WWI and post-WWII, the Fed has done no worse than earlier systems. Today's Fed staffed with the best economic minds in America stand a vanguard from the excesses of capitalism." It sounds like America has some sucky economists, or they have the best of the best and they are trying to ruin the economy, one is inclined to suspect the second. "With management of the inflation rate America gains a bonus of stable prices. The Fed, using macro-economic analysis concluded that a 2% inflation rate was the Goldilocks of inflation, not too much and not too little. " What, the goldilocks level of inflation is NONE, inflation is bad period, it"s a logical fallacy you are trying here, don"t try it again. "Some uneducated and unenlightened might state, stable prices mean little change, but how little they understand. If prices stayed constant or even fall that is not good for an economy. If people can hold currency without penalty then people will do so, this will lead to currency hoarding. Savings is good for people but hoarding is something that must be prevented. Hoarding leads to a reduction is spending which is need to keep the GDP growing. Without GDP growth politicians must answer why there is a recession. " Excuse me, you are saying that inflation is good because it means people are enticed not to save, wow, that is something the Federal Reserve would try to say, you see, savings allows people to invest their money and raise their status, the rich are afraid of this so they get their bank the Federal Reserve, to make inflation to stop it, more savings leads to more investment, which leads to economic growth, this has been proven, every ounce of economic growth in America is attributed to someone"s investment, the Federal Reserve however, our economy grows despite it, not because of it. Plus you are strawmanning me, you are acting as if the people who present the real answer are stupid so you are right. "For these actions to be effective, the rest of the world must understand that international trade is to be conducted in US dollars. In other words, US currency hegemony. This hegemony has been enforced by US diplomatic and military actions. The first step was the Bretton Woods agreement just after WWII. Then upon Nixon's executive order removing America from a semi gold standard, the petro-dollar was born. With all crude oil international trades done in US dollars, America created a financial system the rest of the world must obey." "In the opposition's initial statement, it is pointed out that $9 trillion was issued by the Fed in secret. The Fed must operate in secret, America's banking system is fragile. If the Fed had stated the who's and Whys in this creation of legal tender the system would have collapsed due to lack of confidence. America's fiat money system is extremely fragile, every bank is by definition bankrupt because they can not meet all depositor liabilities. This is the great trick of double entry accounting, for a bank, a deposit is a liability and a loan is an asset. A loan is offset with creation of a reserve, thus legal tender is created for nothing legalized by Congressal action. If a non-authorized institution did the same action, people would go to jail. If a government makes it legal then citizens must comply. " What, the free market system is the most stable system ever devised, it is not that the banking system is fragile, it is that the Federal Reseve is destructive and they don"t want tp be caught. "The Fed protects American from economic swings thus ensuring that people maintain their place in society." No it doesn"t, I have established that the Federal Reserve is unconstitutional and destructive, cut the fallicies and give me a real argument.