2 votes

Does the Federal Reserve Have Too Much Power?

Paul Solomon at PBS answers the question and allows comments.


Based on what I've learned from Ron Paul, the Federal Reserve and Congress have a symbiotic relationship. Congress granted the Federal Reserve the authority to magically create money out of nothing so lawmakers can spend irresponsibly—without raising taxes and feeling the wrath of the voters. In other words, Congress “passed the buck” to the bankers, who get the financial and political benefits of controlling the money supply and, in effect, the nation’s purse strings. Congress wouldn’t need the Fed if it only spent the tax revenue it collected each year. Then the nation would have the "sound money" that Paul talks about.