Why We Don't Need The Fed---A Concise Synopsis

The simplest solution would be to normalize the Fed’s balance sheet (it’s already happening) and then pull the plug by freezing the monetary base. No more printing via open-market operations. Let banks and other intermediaries take it from there, issuing their own branded and redeemable notes on a competitive basis in response to consumer demand. Competition, redemption requirements, transparency, and no more too-big-to-fail would prevent overissue and incentivize a system far more sound than the current one.

As part of this, we need liberalization of monetary alternatives, whether proprietary monies, precious metals like gold and silver, or permissionless use of cryptocurrency. We live in an age of innovation. The quality of money, banking, and payments systems should benefit from market forces rather than be monopolized by government.




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