How to End the Fed, and How Not To

[Draggingtree]

Ludwig von Mises Institute:

 

How to End the Fed, and How Not To

 

Mises Daily:Monday, September 10, 2012 by Gary North

 

 

 

 

It would be very easy to end the Federal Reserve System. Congress would write the following bill. The president would sign it.

1. The Federal Reserve Act of 1913 and all subsequent amendments to that act are hereby revoked.
   
2. The gold that belongs to the United States government, and which is kept on deposit with the Federal Reserve System, is hereby transferred to account of the United States Treasury.
   

If the Federal Reserve System has made any secret agreements with other central banks regarding the ownership of that gold, those arrangements would become legally null and void. The Fed would own no gold of its own to deliver. Ownership would revert to the United States government.

If other central banks wanted to sue the Federal Reserve System, an exclusively private entity acting on its own authority alone, to recover any gold the Fed had promised to deliver, they would have the right to do so. If they really thought the Fed could deliver on those agreements merely because a court ordered it to, they could hire lawyers and sue.