The Federal Reserve System’s mandate is as follows: “The Board of Governors of the Federal Reserve System and the Federal Open Market Committee shall maintain long run growth of the monetary and credit aggregates commensurate with the economy's long run potential to increase production, so as to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.” Now, according to my Webster’s New World College Dictionary, 4th Edition, stable is defined as “not likely to change or be affected adversely.” Now, the Federal Reserve System was founded in 1913. Since that time the value of a dollar has declined 95.75%. Or, put another way, that dollar in 1913 is worth approximately four cents today! (So much for price stability.) In my opinion, this price stability failure alone is sufficient evidence to abolish the Fed. Then again, let’s us not forget the Coinage Act of 1792, which called for the death penalty for anyone who debases the value of the currency. Are you listening Mr. Bernanke and the other six Board of Governors of the Federal Reserve System?
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