1. If you read the conspiracist literature just for fun or like me, because I find fairy tales and imaginary literature compelling in the way William Blake called such works of poetry as "images of the truth" and here we mean, the truth of the interiority of our minds, the latest blameworthy theme bandied about is the root and handmaiden of evil in the Evil Empire is the US Fed. The media savvy and very popular Aaron Russo released a film documentary on America: From Freedom to Fascism in 2007 which helped the Presidential campaign of Ron Paul, who is again currently running for the Republican nomination. One of Ron Paul's campaign promises is to dismantle the Fed.
2. I have to admit that Russo is a compelling story-teller and rhetorician. See: http://v11.lscache6.googlevideo.com/videoplayback?id=3594925e2e858fa6&itag=7&begin=0&ratebypass=yes&title=Historic+Interview+with+Aaron+Russo,+Fighting+Cancer+and+the+New+World+Order&ip=0.0.0.0&ipbits=0&expire=1313850432&sparams=ip,ipbits,expire,id,itag,ratebypass,title&signature=7B243C2E27F34944EE3298FD66CACD34C29D8596.3E0C3DA5D5F80AD17977D45A7E440379DB83B4B5&key=ck1
And I'm always open to hearing alternative universe views on how the money-banking system SHOULD work as Ron Paul continuously advocates his libertarian (though unquantifiably testable) views. But one might note that although the US Fed operates as a quasi-private institution (the US President appoints council members and sets salary levels), it does make a profit and pays most of it back to the US Treasury in the form of tax. In March 2010, of its $82 billion profit, it paid $79 billion to the Treasury.
3. I don't believe the US Fed is part of an evil cabal or a servant of any particular "bankster" group. It simply has a very difficult job of managing "monetary" policy with very blunt tools. When you think about their powers for even a few minutes, you may see that as a bank all they can do is lend or borrow and pay most of their profits back to the Treasury. They don't directly affect fiscal policy and their attempt to stimulate the economy during recession is again very limited. To say we have to kill the central bank because they are the root of evil ignores the bank's rather benevolent deontology.
4. Basically, the US Fed gives the government SOME TIME to sort out CURRENT messes over a LONGER period of time. This cannot be easily replaced, and without it, many of the fruits of a complex and FREE micro-economy cannot even be realised on a day by day basis without this TIME-TRANSFER-OF-RISK function. The central bank tries to ensure the smooth operation of the money-pump in complex societies. It might be thought of as the life-blood system to Adam Smith's "invisible hand."
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