For the Federal Reserve

Arguments for the Federal Reserve

The Federal Reserve has the ability to alleviate some economic turmoil through its ability to adjust the money supply, as an overnight lender of funds, and through regulation of the banking system and specifically the member banks. First, the Federal Reserve established a national currency. Prior to the Fed, there were over 30,000 currencies in the USA. The Federal Reserve made a singular currency valid throughout the country. Next, the Fed protects small banks. Without the Fed, larger banks would have a great deal of power over small banks, potentially causing them to fail. The Fed helps to control inflation and deflation, keeping the country running smoothly in terms of finances.The Federal Reserve helps to represent America and its financial interests. Without the Fed, the interests are represented by banks, clearly not the healthiest financial option as banks are concerned about private rather than public interests. Lastly, banks are required to undergo an impartial, outside audit done by the Federal Reserve. If the Fed did not exist, all audits would take place internally, causing corruption among the banks. 

Against the federal Reserve

The federal Reserve #2

The federal reserve is a very highly debated topic, with many ideas for, and against it. Here are some of the main reasons why people think the Federal reserve is not a good idea. 

1.) The federal reserve has too much power to control our economy - Federal reserve Chairman Ben Bernanke has the power to dramatically impact our economy at a drop of a hat. The central bank completely controls and determines the money supply. It is permitted to create as much money as it wants out of thin air with no restrictions.
2.) The Federal reserve has devalued our currency significantly - The more dollars we have in the circulation, the less the currency is worth. Our money supply has rapidly increased over the past century due to the  Federal Reserve printing massive amounts of money like there is no tomorrow.
3.) It is run by unelected, unaccountable bureaucrats - I think that people would be more in favor of the federal reserve if we were able to vote on who was a part of the Federal reserve. 

The value of the dollar bill

Value of The Dollar Bill

The dollar bill was first introduced in 1929. It features our first president, George Washington, on the front, and the Great seal of the United states on the back. The federal reserve says that an average lifespan of a $1 bill in circulation is 5.9 years because it is replaced due to wear and tear. About 42% of all U.S. currency produced in 2009 were one dollar bills. 

The value of the one dollar bill has greatly decreased over the years due to a variety of things. For one, the U.S. imports more than it exports, which causes us to lose money, so more money has to be borrowed. The more money that has to be borrowed and put into circulation, the more the value of the dollar goes down. Also, the wars we have been in cause us to lose money, which contribute to that. 

 

Federal Reserve

The Federal Reserve

The federal reserve is often misunderstood as a place where we keep our money. Actually,  The Federal Reserve Board has regulatory and supervisory responsibilities over banks. This includes monitoring banks that are members of the system, the international banking facilities in the U.S., the foreign activities of member banks and the U.S. activities of foreign-owned banks. Basically, the Federal Reserve’s duty is to keep inflation balanced and in a state of not growing too much or too little. Unfortunately, the federal reserve is based on human judgement, therefore human error is very apparent. 
     So, when we need money, we borrow it from the Federal reserve, and eventually have to pay it back. People think we owe most of our debt to Other countries like China, but we actually owe most of it to the federal reserve. 

Goal for my blog

Goal of my blog 

The next Two weeks

For the next two weeks, I want to find new things about the people who started the creation of notes, and find new reasons why they did it. Also id like to go into detail about how our federal reserve works and how the economy of the USA is changing. I want to learn about why the federal reserve was built and how it helps us. Also, I want to get different opinions on the idea of the federal reserve, and why some people think we should abolish it.