Obviously this commenter "cropton" is not aware of some very significant facts and issues. For the benefit of readers, "cropton", concerned citizens, and those enslaved by debt (which is really all of us - read on to see why), let us make some things clear. There is a reason that previous politicians like Andrew Jackson fought so hard against a central banking system -- to uphold the intentions of our Founding Fathers and to maintain the integrity of the Constitution! At the same time, there is a reason that the Banking Elite lobbied and manipulated for the re-creation of a central banking system -- for complete control of our monetary policy, and essentially control of our freedoms. The Federal Reserve Act awarded complete control to the Banking Elite. It's easy for people to forget that at one point our money was actually backed by gold... which helped to maintain inflation. Nixon completely reversed this in 1971. The reason why the Banking Elite convinced Nixon take our currency off of the gold standard was so that they could print money at will, and lend this money, at interest, to our own Government. Why? So they could then freely provide money to further war, take control of the media, etc. It creates a vicious cycle. War makes more war. Media makes people fearful. And when more money is needed for more war or to take care of the powerless and fearful people, our government borrows more from the Federal Reserve. Furthermore, with dollars not backed by gold, inflation increases while the value of the dollar decreases. Proven fact. If we still had a curreny tied to the gold standard, with the same money we have today, we could purchase products at prices of 50 - 100 years ago! Talk about wealth creation and prosperity. Also, history books forget to mention that people during the earliest days of our country were actually more prosperous than today. People are in debt because money is worth nothing compared to the cost of goods, services, etc. Our government is in debt -- they borrow money from the Federal Reserve. Debt is like a cancer... the more you are in the debt, the more you borrow. This is EXACTLY what the Banking Elite wants... to always maintain the need for THEIR currency. Speaking of this... did you know that the Constitution specifically states that Congress is the only entity that can coin money. Then why are we allowing a privately-owned entity to lend us money? True, politicians are definitely corrupt... But you have honest and decent politicians like Ron Paul that are promoting the need for the end of the Federal Reserve. It could be done and Congress could manage a currency backed by gold. Ultimately this would be better for all of us! And how naive for cropton to say that CEOs basically deserve what they are paid? Tell that to the millions of disgusted Americans seeing companies getting bailouts while the CEOs are making 25 million a year! Does this make sense? Cropton, go talk to the millions of Americans that have 2 jobs, and do work 75 hours a week... for only 12 / hr and worry how they are going to survive while AIG employees are going to exclusive resorts after being bailed-out. Being part of the Fed is not an honor or a privilege. It is a disgrace and goes against everything our nation was built on. And yes, the Fed on purpose devalues its own currency. Why? Because the system is setup so well for the Fed to profit so much off of debt enslavement. It's really no different than paying back a payday loan. And the people at the bottom of the totem pole suffer the most. Solution? End the Fed!

Are you kidding? First of all, why would I want the person who runs the fed to be elected by someone like this author, who clearly doesn't understand how central banking works. a)"The Fed prints money." First of all, though this is more of a semantic issue, the Fed doesn't print any money at all. The US Treasury Bureau of Engraving and Printing (or the US Mint in the case of coins) makes the money, and sells it to the Fed at cost, which then distributes the money throughout the banking system. In the sense that the Fed can create more money at will, yes. That's how money works. That doesn't mean that it devalues the money already in existence, just that more money is in existance. Here is an example. Let's say all the goods and services that exist in a country equals $100, and there exists $100 worth of currency. Now, let's assume we had a great year, and we contributed so much to it (through either population growth, or an influx of stuff, or just from being really productive) the goods and services is now equal to $110. But we still only have $100 in currency - thus, relative to the value of the goods and services in the country, the value of those $100 dollars actually increased. Thus, the Fed in this case would insert more money into the system to balance it out. Inflation is associated with more money in the system, but that doesn't mean that printing more money automatically results in inflation. In fact, small amounts of inflation, if it is expected, is good. Because deflation is way, way worse. b)We really don't have an inflation problem in this country. Turkey's inflation rate is typically ~80%. Our is like, 3%. Wtg. c) Being on the gold standard sucks and results in massive business cycle booms and busts. Without quantitative/qualitative easing and being tied to a physical commodity, you are unable to respond to massive supply/demand shocks by changing the money supply. Also, the price of gold changes daily as it is a traded commodity - would you rather your money is based on a pre-determined value that everyone agrees on ($1=$1), or on a commodity whose price changes every day? If you want to get technical, yes the dollar is traded as well but in terms of common purchasing power, the value does not change. d) Having a lender of last resort is GOOD. Without one, banks would fail a lot more than they do now. Because of the nature of fractional reserve banking, sometimes unexpected events cause depositors to all demand their money at once, or some other shock to the amount of funds lying in the vault causes a run on the bank that is effectively temporary. Having a lender of last resort establishes confidence in the banking industry and smooths over these issues. By the way, all central banks serve as lenders of last resort. Probably because it's a good idea. e) The Fed is a quasi-public institution. Its shareholders are a huge number of private banks who receive charters from the government in return. It's also not one bank, but twelve smaller banks. The banks that own these shares do not receive dividends and cannot sell their shares on the open market. The shares represent their being tied to the fate of the bank. Private banks don't profit per se from the Fed - they benefit indirectly by having a government sponsored organization watching out for the system as a whole. Banking is based on confidence - the Fed, along with other institutions like FDIC, SPIC, and other regulatory agencies, are there to ensure confidence in the financial intermediaries that promote the day to day functioning of an economy. f) The fed is independent of the government because politicans don't know shit about banking. In fact, most people don't. And I don't blame them - banking is extremely complicated. That's why "the elites" run it - because you have to be really smart and really immersed and spend years studying it to fully grasp how the system works. Monetary policy being independent of fiscal policy makers is essential to a well-functioning economy. The fed is there to 'take the punch away' when the party gets out of hand. It's unpopular being the fed. That's why it's independent, because otherwise politicians, whose main job is to get re-elected, would make horrible choices. g) CEO's make more than you or me because they work a lot harder than you or me. When's the last time you worked a 75 hour week every week for a year? They also get fired if the company does poorly. h)Members of the fed aren't career politicians, because they can make a lot more money in the private sector. Being on the fed is an honor and a privilege - people do it because they want to make a difference and serve. It's also cushy as hell, so no wonder people do it. Final thought. Why would bankers purposely devalue their own money? This is a paranoid article that indicates a poor understanding of financial systems. Central banks are good. They are important for a mature post-industrial economy. Fail.