We've discussed this effort from Kucinich in the past:
Watch this clip all the way through. It doesn't make sense. For example, Kucinich makes a reference to a "permanent supply of money, that will not be inflationary." That is complete and utter nonsense. This is the core of the problem if Congress gets rid of the Fed.
The rationale for the Fed's existence is that Congress can't be trusted with the power to coin money, given their penchant for irresponsible spending. The thinking goes that whichever useless party were in power would spend and print without limit (since deficits would no longer exist) as a means to guarantee (buy) their continued existence as the majority party.
So the Fed was created and the Constitutional authority to print our currency was handed to a group of private bankers. The result was that all Federal deficits had to be borrowed and interest paid to the Federal Reserve, all to prevent the destruction of the dollar through wanton spending and printing by Congress via the U.S. Treasury.
However, in the past 4 years, the Fed has completely abdicated their duty and charter to protect the dollar. The Fed now prints with reckless abandon, under the guise of saving the economy, but the money is going to Wall Street and big banks in stealth QE maneuvers (and so-called emergency bailout programs), and NOT to the people.
Without a balanced-budget amendment, why should we trust Congress to be responsible stewards of the U.S. dollar, much as we can't trust the Fed. There would be no limit to printing. Banks and Wall Street might just as easily end up being the recipients of Congressional largesse in the same way they are the beneficiaries of Bernanke's helicopter.
It's a recipe for disaster. I do not trust Bernanke's Fed, and I do not trust Congress. This is the core of the problem with ending the Fed. And it's something that most anti-Fed proponents do not discuss.
What is the responsible alternative to the Federal Reserve that doesn't create a spending monster in Congress? There is only one answer: a balanced-budget amendment to the U.S. constitution. Without it, ending the Fed would never work.
Read more on Kucinich's legislation to end the Fed HERE.
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