The Federal Reserve should be abolished.

I apologize for not upping the character limit. Con makes an educated argument. But, it did not prove why the FED needed to be kept. It mostly just explained problems with the FED, and problems that the FED has. Con also did not address how the Federal Reserve is a cartel, so I guess my opponent agrees that it is. Con's Argument for the functions of the Federal ReserveCon basically outlines the functions of the FED, but fails to recognize that it has failed to achieve any of its major goals. The invention of the elastic currency was in fact, another way to benefit the banks. Without the elastic currency, they were not able to change their interest rates. In fact, the American people did not want a central bank. They wanted a new banking system, yes. But NOT a central bank...which is what they got. Americans had seen what the central banks did in Europe. Central banks were created in Europe in the 16th century. They created central banks because they realized they could only tax their subjects so much. 46% was the natural debt ceiling. But after they created the central banks, they were able to tax their subjects 50%, 60%, 70% and sometimes 80% through the process of inflation. The Federal Reserve operates the same way. On InflationAlthough con seems educated on the subject, there are a few flaws with his argument. First of all, prices don't really go up. They only appear to because the price of the dollar goes down. The primary reason for this is the Federal Reserve. Our government spends way more money than it takes in with taxes. They use the Federal Reserve to get around this. The FED creates money from nothing, and allows inflation to occur. Since 1913, the value of the dollar has steadily declined. The reason. Because the FED is not even capable of stabilizing the economy. It does not act on public interest. Cartels usually don't act on public interest. They operate on their own interest. On Gold Standard"But they didn't work before, won't work now."Gold standards have been used for thousands of years, and they certainly can work. Con argues that because of the limit of gold, it should not be used as currency because it cannot be adjusted to different economic conditions. The fact that a currency needs to be adjusted is a myth. All societies go through periods of slumps and periods of economic boosts. When a slump happens, adjusting the currency is not a good thing to do. An example of this would be during FDR's administration (which by the way was probably the closest example of a dictator we have had in this country, but that's for another debate) he adjusted the prices of items because he believed prices were too low. So that's it! No one has enough money to buy anything, so lets just raise the prices! Perfect!! This caused a lot of problems in the United States and was a contributing factor for why the Great Depression lasted so long. (Recessions usually last 1-2 years. Depressions last about 4. The Great Depression lasted 11)When on a Gold standard, your currency will overall stay the same, and the economy will eventually rise again. When tampered with, the currency becomes destabilized, and it destroys the overall value of the currency. Reasons for abolishing the FED.1. It is incapable of accomplishing its stated objectives as to maintain the stability of the financial system.Still stands.2. It is a cartel, operating against the public interest.Still stands3. It generates our most unfair tax.Still stands4. It destabilizes the economy.Still standsNow, although I am not required to come up with another entity could be an alternative to the FED since my main argument was just "Should the FED be abolished?" I will still give an example of an alternate we could use anyway. The Gold Standard could definitely work. And we don't have to have a central bank. The central bank is just another way of taxing the citizens without them knowing it. I believe private banks could do the job just fine. We would keep the dollar, and just have it backed by gold. This gives your currency stability, and it also makes your currency worth more. That would be my alternate. Citations http://en.wikipedia.org... http://en.wikipedia.org... http://mykindred.com... http://en.wikipedia.org... http://www.bigeye.com.......