The Federal Reserve should be abolished

Con has refused to directly address the issue of Federal Reserves immorality. R1-Fed Punishes Innocent People/R2-Fed Rewards Irresponsibility/C1-Interest RatesCon"s argument is that since the economy is intertwined, innocent must be punished and the irresponsible rewarded. The interests of the few that control the economy outweigh the rest, con"s words "Even if this is "rewarding irresponsibility" it is necessary for the economy to function. The economy is intertwined. Simply, as companies hire people who take their salaries and purchase things so other companies can hire people. Therefore, a strong economy is needed for businesses as a whole to be successful." Then the question becomes, AT WHAT COST? To individuals as well as America's future.R3-Fed Distorts Markets/C2-Inflation Targeting:Con asserts that "one does not have to keep their savings in dollars", yes once does, a US bank account must be denominated in US dollars and businesses must accept US dollars http://www.federalreserve.gov... . Then, uses an example of a commodity, gold as an alternative method to lose real wealth, a commodity"s price can be affected by a great number of factors, which should not apply to money. Part of the definition of money, at one time, included "a store of value" but with Fed policies that is no longer true http://www.shmoop.com... . If the gold had been denominated in Swiss Francs the holder would have only lost 14% of value (2011 @ 1317.3, Apr 2015 @ 1127.22) https://ycharts.com... . For a person to maintain wealth they must risk their wealth at a greater level. A people should not need knowledge about commodities or other markets just to maintain their stored value. A dollar today should have the same purchasing power 10 years from now. Looking at the butter example (using the same questionable State Department site), one dollar in 1950 would purchase 1.35 lbs of butter then in 1990 one dollar would purchase .48 lbs of butter. A dollar has lost a lot of purchasing power, or factors in supply and demand have forced the price of butter higher.Deflation:Delayed Purchases: Con"s Christmas example does not support the assertion, but better supports Pro"s view. Stepping back to microeconomics, when a supplier and a purchaser reach a voluntary price agreement, a product is sold. If a producer received incorrect market signals and over-produced a product that product will fall in price, thus an after-Christmas sale.Time preference voids delayed purchases assertion, using a laptop computer as an example. Every one of us know, that any computer purchased will drop in price in just a few months, yet computers are still sold. We still purchase a laptop due to our desire to have a computer now verses a few months from now. Debt repayment: Savers and borrows should be the groups that set interest rates, not central bankers. When a market sets the rate, everyone can select the level of participation. Yet, when governmental central bankers set rates to benefit government policies, central bankers show thier lack of independence, and are focused on governmental priorities. The statement by Con has some questionable morals "The US government gets it money from tax payers and spends its money primarily on services which employ people. Therefore, in order to keep up with interest programs would need to be cut or taxes raised, both which hurt the economy." Government taking money, by force from one person and giving it to another, then telling the victim we did it for your own betterment is laughable, but better described as despotism.Currency deflation does have losers, people that have piled up large debts to please their overlords, will feel some pain when the Fed is abolished. A currency with more purchasing power, which is set by markets and individuals, provides the most freedom. There are many solutions that could reduce this Fed caused pain. The next debate can be "Options after the Fed is dead".Pro"s view of deflation is extremely biased toward central control of the economy. The central planner's view of deflation, assumes that deflation is is triggeredby lack of demand with the cause being layoffs and wage reduction. Let"s look at another view of deflation https://www.aeaweb.org....The diagram below displays each step supported by microeconomics. As taught in day two of every microeconomics class and forgot by macro-economists, a Production Possibilities Frontier or PPF and explained here, https://www.khanacademy.org... . Innovation or capital accumulation is how a PPF is moved to the right, thus expanded. Using this as a starting point, an innovation causes products to decrease in cost, allowing sellers to reduce price. This reduced price has many effects, frees capital for either additional consumption or additional savings, and this lower price is modeled on every supply/demand model. https://www.khanacademy.org.... When a price falls the producer surplus is reduced and a market is out of equilibrium. Creating both a shortage and reduced producer surplus, these conditions motivate producers to expand their PPF. To expand their PPF additional capital is required. This capital is provided by the consumers that saved money due to lower prices, coordinated by a natural interest rate, which sets a price for loanable funds, not a central banker. With innovation, the supply curve shifts to the right reaching a new equilibrium.The above cycle also demonstrates "real wealth building" that is building wealth will capital accumulation and innovation. The Federal Reserve"s system encourages an economy of debt, not wealth. The Federal Reserve"s banking regulations and monetary policy requires debt to create currency, in this system, no debt, equals no currency http://upload.wikimedia.org.... The Federal Reserve System perpetuates this system of debt as an economy.To directly address Con"s statement "I said in this premise and it is not even true during major deflation. A nation"s central bank will drop interest rates during deflation to encourage spending, in the case of Japan to near 0%." Central Banks setting any interest rate will cause a market failure. The type of deflation Japan was a market attempting to reach equilibrium, thus an artificial interest rate increased the length of the problem. This is currently being shown in the American economy with a too large money supply and too low interest rates. Markets can control both, better than a small group of political elites with an agenda.3-Bank Supervision and RegulationThe Second Bank of the United States closure, an example of the US ending central banking. Then Con states "banks began keeping less in reserves". From Con"s own, Wikipedia source about the Panic of 1837, "On May 10, 1837, banks in New York City suspended specie payments, meaning that they would no longer redeem commercial paper in specie at full face value." If Con is asserting that banks were not keeping enough reserves, meaning less than 100%, then the Fed legalized this practice though fractional reserve banking. In periods of "sound money", that is money with commodity backing. Issuers of currency are required by natural property rights to provide on demand the agreed to amount of a commodity. Thus, if 1 unit of currency is backed by 5 widgets, the holder of said currency can receive 5 widgets from the issuer. If the issuers, begins to produce more units of currency than has widgets backing the currency the issuer has inflated this currency. Thus, has stolen from the holders of the widget backed currency. Every banking panic in America during from 1819 to 1907 was due to currency inflation http://www.libertyclassroom.com... . If like the Federal Reserve"s banking system with zero backing, zero times zero will always equal zero, thus zero reserves should be required.The Federal Reserve"s banking regulations are essential by the inherit instability of fractional reserve banking http://www.ecfr.gov... . Any system that allows currency creation from nothing is immoral.4) Macroeconomics should be treated as astrology!Some imaginary ideas, which macro-economic theory asserts:Individual savings = bad for an economy yet good for an individualLower prices = bad for an economy yet good for an individualFree market for currency = bad for an economy yet good for an individualDebt = required for an economy yet bad for an individualEconomies require steering by an all seeing overlord!The Federal Reserve is a destructively immoral institution, confirmed by both Pro and Con as such. A free society cannot allow an institution such as this to continue.