The Fed is a Dictatorship and Can only Harm our Economy

One argument I have not heard against the Fed is that it's a dictatorship. If you think about it, the Fed is like a tribal organization. Ben Bernanke is the chief. Greenspan was the chief before him. And the chiefs are surrounded by a council of elders - the governors of the different Fed branches. And they answer to nobody. Once appointed, they are unaccountable for 10 years, yet they hold the power to destroy our economy in their hands.

Out here in the self-governing world, congress passed the TARP program and is debating Obama's stimulus boondoggle. But during the same time, Bernanke created program after program after program, manipulating our economy with no oversight from the people. Bernanke has refused FOIA requests and operates in complete opaqueness. He operates as a dictator in a shadow government. Nothing could be farther from the American ideal of freedom and self-government.

And the Fed has no power to improve our economy, only to harm it. Suppose Fed policies were as effective as possible. That would mean that the Fed was doing exactly what the free market would be doing without it. The Fed would have set interest rates exactly where the free market would set them and the money supply would be exactly where the free market would have it. That's as good as it gets because the free market is best possible system at determining those things.

But the moment the fed deviates from free market conditions, it's harming our economy. It's perverting our economy from its most efficient state to a less efficient state. No amount of good intentions can change this fact. And people are imperfect, so the Fed will never be as good as a free market. The only conclusion is that the Fed is always harming our economy.