03/08/12 Abolish the Federal Reserve

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Ron Paul may be on Point about the Federal Reserve.  He has proposed that we abolish the Federal Reserve.

If we look at Federal Reserve policy over the past few years, it is hard to see how they have enhanced our US economy.  By keeping interest rates low since the recession began they have not stimulated the economy.  In fact they may have hurt the economy by reducing the interest received by savers and pension funds.

In a time when our nation needs more savings, the feds policy of lower interest rates have clearly discouraged savings by the American consumer.

Who wants to save a thousand dollars annually only to receive 25 basis points or $25 a year from their bank?

There is a certain irony that the financial recession was caused by over extended lending in the real estate sector and the feds solution is to reduce interest rates in that sector of the market.

Does the Fed truly want to encourage Americans to borrow more money to invest in real estate?  Our money supply has increased about 3 times.  This is an inflation nightmare waiting to happen.