• Background: Implications would be a commodity-based monetary system
• Debate: Fed has too much power v. ???

Background

• Implications: With the Federal Reserve abolished our debt-based monetary system would need to revert back to a commodity-based monetary system. Because the Federal Reserve keeps our current money regulated by controlling inflation, a new regulator would need to be put in place by backing the U.S. Dollar with a precious metal or some other rare commodity.

Debate

• Proponents of this position view the Federal Reserve as holding a monopoly over our nation's monetary policy. They see it as having too much power and claim it is responsible for false "bubbles" in the economy. (e.g., the Housing Bubble) They also see the Federal Reserve as prolonging the inevitable and making the fall that much harder. Others point to the fact that the Constitution doesn't specifically allow for a central bank.