The US Mint shipped 8.4 billion pennies for circulation in 2017, more than all nickels (1.3 billion), dimes (2.4 billion), and quarters (1.9 billion) combined. In any event, I do not keep large amounts of cash on hand. Did you ever bother to READ THE FINE PRINT?! The People who chose credit cards with APR's, Tim, are doing so without really realizing they are conducting an INTERSTATE business arrangement with who they think is their LOCAL BANK. Add to that lobbying of various interest groups and a soap opera on regulatory change ensues. The Federal Reserve is largely responsible for the out-of-control spending by Congress. A credit bubble rightfully received some of the blame for the financial crisis in 2007. The Army, Army Reserve, and Army National Guard are not meeting recruiting goals, and junior officers are not re-enlisting. I will explain further if challenged, but prices convey vital information to producers, consumers, workers, … The Federal Reserve Routinely Bails Out Big Banks. Now...with all this talk about ENDING THE FED, or maybe even AUDITING the FED? Historically, this is actually false. In 1973, at the end of the Vietnam War, Congress abolished the draft in favor of an all-volunteer Army (AVA). The Federal Reserve has never been fully audited by any outside source. INTRINSIC VALUE in your pocket! and I have to pay for their "peace of mind," Kenny...........so, Kenny...do me a favor....STFU! Ultimately greed is bad for society as a whole and “infectious greed”, to which Federal Reserve Chairman Alan Greenspan attributes the current business crises (James), can do a great deal of damage to an economy. I don’t think every business cycle or economic bubble post-1913 has been caused by the Fed. The federal government can only obtain money through taxation, printing or borrowing money. The Federal Reserve is just a name given to this particular manifestation of it. The Internet boom and bust, which was small by comparison but still significant was probably not an Austrian business cycle. "Foreign object in the ring!". The economy has been less stable since the introduction of the Fed, not to mention we've had a currency devaluation of around 98%. I have 2 main contentions against the proposition that the Federal Reserve should be abolished 1: The Federal Reserve bank is necessary to maintaining price stability. It is often wrongly defined as the general rise in the price of goods and services. However, the boom (with jobs coming back) would follow much sooner. Constitutionality. The Federal Reserve is Far Too Secretive. The members of that Board are appointed by the President and are confirmed by the Senate. However, some people will suffer a liquidity shock in year 1 and will want to withdraw their money early. Inflation is the increase in the supply of money and credit. The Pros And Cons Of Slavery In The Civil War 1064 Words | 5 Pages. And there was GOLD or SILVER in it! As long as the number of people withdrawing their money early is small, then they can fund the investment and pay early withdrawers more than just their initial investment. It's far more difficult to make a run on a central bank with a printing press. 1. A run on banks can easily turn into a run on a clearinghouse. Most of the American people and Congress agree. During that time, he has consistently been a source and fearless champion of some of the best, limited-government legislation across a wide spectrum of issues. The Federal Reserve System is the central bank of the United States and provides the nation with a safe, flexible, and stable monetary and financial system. The actual production is 1.78 cents, admin costs are 0.25 cents, and distribution to Federal Reserve banks costs 0.03 cents. The FEDERAL RESERVE and the IRS is HISTORY! But abolishing the Fed only raises the bigger issue: What would—or should—be in its place? The US Congress can even bring the dead back to life. Representative Jim Kolbe of Arizona has twice introduced bills in Congress to eliminate the penny, and in February 2014, President Barack Obama argued during a YouTube chat that pennies were obsolete and a symbol of U.S. government waste. This bill would simply eliminate the provision of the recently-passed Coronavirus Aid, Relief, and Economic Security (CARES) Act that allows the Federal Reserve to hold closed-door meetings about its newly-created $450 billion bailout fund, which is more vital now than ever as we continue to observe the alarming lack of transparency that has come along with the Federal Reserve’s new authorities. Pro 1 Raising the minimum wage would increase economic activity and spur job growth. 7. Federal Reserve Chairman Ben Bernanke has the power to dramatically impact our economy at a drop of the hat. If they do, suppose they will receive back just their initial investment. Well...one of the reasons, is the funny way the Framers WROTE ARTICLE 1 SEC 8 Clause 5 of the US CONSTITUTION. As the title states what are some pros and cons to the Federal Reserve Bank? 24, if he or she hasn’t already done so. The debate is hardly new. They can guarantee that the bank will have enough money to pay everyone back. Due to my strict interpretation of the Constitution, I find the Federal Reserve to clearly violate the Constitution. ], 1. However, the boom (with jobs coming back) would follow much sooner. Zinc mining has a negative environmental impact. Press question mark to learn the rest of the keyboard shortcuts, http://en.wikipedia.org/wiki/Hong_Kong_Monetary_Authority. One of the BEST THINGS that happened with the FED RESERVE, is the fact that OUR BANKS HERE have a UNIFORM CURRENCY...(in other words, they don't have to issue their OWN currency sets to circulate around, risking one local bank's currencies and another region's bank's currencies, to have INEQUAL values...and they BOTH SAY "DOLLAR..." WHY? And that is the State where the Laws are either NON-EXISTENT, or so lax or vague that the law would exceed the point of UN-enforceability... And that is precisely the State where the SIGNOR of the CREDIT CARD CONTRACT...gets their signature RECOGNIZED...turning what SHOULD BE a LOCAL INTERACTION, into an INTERSTATE interaction... and the poor Schmuck that just signed the loan, can complain all he wants to his STATE assembly... And the STATE GOV will have to say to the Schmuck, "Hey SCHMUCK! The Federal Reserve headquarters in Washington, DC. Some pros are that everyone gets a say. This is what will almost inevitably happen when a quasi-governmental entity can simply print more money to its heart’s content. (For more discussion of the pros and cons of Fed independence, see here; for more on the degree of the Fed's independence in the U.S., see the bottom of … Senator. The Federal Reserve is Run By Unelected and Unaccountable Bureaucrats I do not believe that inflation should be used to achieve these distributional ends, but these are the facts. FreedomWorks is proud to honor Sen. Rand Paul (R-Ky.) as our member of the month for September 2020. The documents exposed that one of the largest recipients of the Federal Reserve’s money was foreign banks during the 2008 economic meltdown. It isn't *necessarily* authorized to prevent INFLATION, per se...but BANK PANICS...DEFININTELY....), (plus, if you'll remember past reports regarding 90% of the physical PAPER currency, having ILLICIT DRUG RESIDUE upon them? Further, there is a serious risk that real-time auditing of the Fed's financial contracts would weaken the financial system during times of crisis: that's why the Fed's lending window has always been anonymous.