What will stop the Fed?

By Alex Chafuen
by Alex Chafuen

Central Banks have been tools to destroy rule of law in many countries.

"The most secretive organization in America operates without any accountability to the American people. Hiding in the shadows, pretending to be part of the United States government, its power is beyond measure."  A new thriller by Brad Thor uses that blurb to introduce his fact based thriller.  He is speaking about the Fed. The Argentine Central Bank was also founded by respected bankers.  It was a tool that helped to destroy the Argentine dream.  Will the Fed get away and celebrate its 100th anniversary as a victory?.  The democratic dictator Peron, with all his hypocrisy, once ousted wrote: “The set of powers, authorizations, and delegate faculties that make up the legal body of the Central Bank turns this institution into the all embracing and incontestable regulator of almost the entire economic life of the Nation.  Manipulating exchange rates, import and export permits, foreign exchange, setting discount rates and policies, restricting or expanding credit, from the comfortable inflexibility of bureaucratic decision making, fragmented in hundreds of forms, paperwork, signed declarations, one can increase or repress trade with any foreign nation, create, mandate or destroy any industry, help certain regions of the country, or letting them sink, capitalize or under-capitalize chosen activities, promote the building industry or repressing it, encourage or discourage a branch of commerce, designate a certain crop or work for its extinction.  In short, the legal structure of the Central Bank has attributes which openly contradict the Constitution of a democratic nation and allow it to handle all its economic life.”  He even labeled the Central Bank an institution of “an almost diabolical nature” and correctly blamed Argentine conservatives, and British technocrats, such as Sir Otto Niemeyer (1883-1971), for its creation. I wrote this piece in Forbes today to make us aware how difficult our fight is: http://www.forbes.com/sites/alejandrochafuen/2013/07/10/will-the-federal-reserve-provide-us-with-the-next-abuse-of-power-scandal/         

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