Reform the Federal Reserve

Reform the Federal Reserve and index the tax rate so money can flow in and out of the Treasury Department rather than into the coffers of thebanking industry to keep a balanced money supply
Wall Street, the business community, and all people at large has just survived another brush with Alan Greenspan and his colleagues of the Federal Reserve Board. In their behind-closed-doors session of the Open Market Committee, they decided this time not to raise interest rates, citing the lack of any real inflationary pressures on the economy. In the past though, Americans have not been so lucky. Greenspan and his group have on many occasions raised rates. Their reasoning? To reduce the amount of money in circulation to head off inflation.

But if it is important to cool the economy down by raising interest rates to remove money from circulation, why do so by shifting those funds to the banking industry? Higher interest rates fill the coffers of banks, leaving consumers with less money in their pockets and higher rates on borrowed money.

Why should the banking industry profit from such a funds transfer? Wouldn’t it make more sense to funnel excess money from the economy somewhere else…say to the government? Receipt of increased revenues by Uncle Sam could help reduce the national debt and pay for needed social programs. And government spending would eventually stimulate the economy and help finance entitlement programs already in place.

Let’s open to the doors of the Federal Reserve Open Market Committee meetings to C-Span so that the Committe can explain to the American people why they need to raise interest rates.

See two important articles at Web site

•Reform the Federal Reserve

•A Fair, Simple, Graduated Tax System for Individuals and Businesses

Leave a Reply

Your email address will not be published. Required fields are marked *