The Federal Reserve: destroyer and savior

Robert Higgs offers an interesting parable:

In my mind’s eye, I envision a street fair—one of those happy community gatherings at which sellers of handcrafted ceramics, funky clothing, herbal remedies, fresh vegetables, and edible delicacies congregate to display their wares for the strolling customers, who chat amiably with the stall-keepers and with one another. Suddenly, amid horrified shrieks and the roar of a giant engine, a truck plows through this placid setting, scattering twisted debris and broken bodies in its wake. Finally, after wreaking a hundred-yard swath of death and devastation, the truck stops, and the driver, Ben Bernanke, climbs down from the cab.

“People, people,” he exhorts them in a calm, world-weary voice, “do not panic. I am here to assess the damage and make recommendations for reforms that will prevent a recurrence of this unfortunate and wholly unforeseen act of God.” ...

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federal debt

Nobody is going to like what I say, but here it is. Americans have built themselves a culture in which they destroy themselves with borrowing (I'm an American by the way). My grandparents waited 4 years saving up to buy their first TV. Today's generation gets the TV immediately and goes bankrupt due to compounding interest. The private debt held by Americans is 5.8 trillion dollars, 41% of our GDP. Is the Federal Reserve good or evil, do they prey upon us or sell us out to international interests? Wouldn't even matter if Americans were more responsible with their personal debt. If Americans were the ones buying up all the US treasury bonds (instead of foreign countries) and they actually saved, instead of spending every penny they have and building huge personal debt, we wouldn't be in this situation. Every American needs to look at their life and cut out all the debt they can, if it means settling for a 10 inch TV instead of a new 42" plasma widescreen so be it.

Higgs' parable is very true

Higgs' parable is very true and I think as time goes on more and more people will understand why.

@darkfall-gold While we as a people do need to be more responsible, the Federal Reserve would still hurt us because of the monetary inflation aspect and also the absurd fractional reserve requirements that it upholds.