Central banks, and especially the Fed, are run by good, gray men who determine the value and the price of money. They do it every minute of every hour of every day. There's only one problem ... price fixing doesn't work. Never. Ever.
Congressman Ron Paul has done a great service by advancing this SIMPLE point on the national stage. Those responsible for central banking will in turn explain all the "good" things the Fed does. In fact, central banking is a weapon aimed by the Anglosphere power elite at the West's (and the world's) middle classes. There is no excuse for them. They ought to be abolished as quickly as possible. Here is more from Dr. Paul's article:
Adding new money increases the supply of money, making the price of money over time—the interest rate—lower than the market would make it. These lower interest rates affect the allocation of resources, causing capital to be malinvested throughout the economy. So certain projects and ventures that appear profitable when funded at artificially low interest rates are not in fact the best use of those resources.
Eventually, the economic boom created by the Fed's actions is found to be unsustainable, and the bust ensues as this malinvested capital manifests itself in a surplus of capital goods, inventory overhangs, etc. Until these misdirected resources are put to a more productive use—the uses the free market actually desires—the economy stagnates.
The great contribution of the Austrian school of economics to economic theory was in its description of this business cycle: the process of booms and busts, and their origins in monetary intervention by the government in cooperation with the banking system. Yet policy makers at the Federal Reserve still fail to understand the causes of our most recent financial
The continued existence of an organization that can create trillions of dollars out of thin air to purchase financial assets and prop up a fundamentally insolvent banking system is a black mark on an economy that professes to be free.
This is the genius of someone like Dr. Ron Paul. We could never have written this statement so clearly and concisely (though we try every day). The peculiar brilliance of Dr. Paul lies in his adamant insistence on pointing out the REAL problem of the modern world – its endless distortions of money – and his ability to put it into words that everyone can understand.