The Federal Reserve and Sound Money
We are living in a time of monetary chaos. The U.S. Federal Reserve has manipulated key interest rates down to practically zero for the last six years, and expanded the money supply in the banking system by $4 trillion over that period. And with the true mentality of the monetary central planner, the Fed Board of Governors now plans to manipulate key interest rates in an upward direction that they deem more desirable.
The real long-run goal of monetary reform should be the denationalization of money. That is, the separation of money from the state by ending central banking altogether. In its place would emerge private, competitive free banking ‒ a truly market-based money and banking system. In the meantime, a gold standard can serve as a form of a “monetary constitution” setting formal limits and imposing restraints on those in government who would want to abuse the monetary printing press, similar to the way political constitutions, however imperfectly, are meant to limit the abuses of power-lusting monarchs and the plundering majorities in functioning democracies.