There is a small group of people who subscribe to the view that central banking is just a slick combination of central planning and cronyism (Jim Grant, Jim Rogers, Marc Faber, Rep. Ron Paul). The Fed is essentially a criminal organization, owned by (and for) private banks, with little to no transparency or accountability. It is essentially a pyramid scheme on top of a counterfeiting operation. No private business could get away with what it does.
One of the Fed's stated goals is to "fight inflation," when in fact it causes inflation. Just look at its track record. From 1800-1914, consumer prices were basically flat under a quasi-gold standard. Since the Fed's founding in 1914, the dollar has lost over 95% of its value.
The Fed owes its existence to pure propaganda. Let's face it, Greenspan and Bernanke did little to distinguish themselves before becoming Fed chairmen - no outstanding forecasts, no great fortunes or enterprises built. But once appointed to rule the Fed roost they were treated like rock stars. Politicians either don't have a clue what the Fed does or look the way because the Fed allows them greater resources (via the printing press). The mainstream media has a statist/interventionist mindset so they fall into line. And of course the special interests at the trough - Wall Street and the big banks - do their best to convince everyone that life as we know it couldn't exist without the Fed. We can't possibly let the "system" fail, even though that system is corrupt and causes chronic bubbles and inflation.
With the Fed (and Treasury) desperately and blatantly trying to save their financial friends from their own folly, more people are pulling back the curtain on this scam.
~ Kevin Duffy, Bearing Asset Management, April 10, 2008