Center for Freedom and Prosperity Foundation
For Immediate Release
Monday, March 21, 2011
CF&P Video Condemns Federal Reserve,
Discusses Ways to Fix Monetary Policy
(Washington, D.C., Monday, March 21, 2011) A new video released today by the Center for Freedom and Prosperity Foundation (CF&P) explains the origin of central banking and sets the stage for a discussion of alternatives. Entitled, “Time to End the Fed? The Origin of Central Banking and Possible Alternatives,” the video notes that the dollar has lost 95 percent of its value since America’s central bank was created, explains the Federal Reserve’s penchant for causing economic instability, and speculates about different approaches that would lead to better monetary policy.
The video is rich in history, touching on both the origin of coins (Greek city states around 700 BC) and currency (private sector in Italy around 1500 AD). It also discusses the beginning of central banking in about 1700 and a competing approach known as free banking that evolved around the same time.
Free banking is a market-based system of competitive currencies. Scotland thrived under a free banking system until England regulated it out of existence in the mid-1800s. Canada, Australia, and the US also had versions of free banking systems, though all these competitive systems eventually were squeezed out by governments.
Future videos on monetary policy will build on this mini-documentary and look at different policy alternatives, such as whether the US should adopt a gold standard, a free banking system, or rules to restrict central banks from debasing currencies.
“Monetary policy is generally overlooked,” said CF&P Foundation President Andrew Quinlan, “but sound money is essential for economic prosperity, and this video helps explain the origin of unstable central bank systems.”
Dan Mitchell of the Cato Institute observed, “From the Great Depression to the Financial Crisis, the Federal Reserve has a dismal track record.” Mitchell also remarked that, “It’s time to consider alternatives that do not rely on short-sighted politicians and political appointees.”
- The Federal Reserve has existed for almost 100 years and it has created depressions, recessions, inflation, and bubbles. This video explains the origin of central banking and mentions possible alternatives that will be discussed in subsequent mini-documentaries.
CF&P Foundation has also released more than three-dozen mini-documentaries since 2007. These videos include Tax Competition Primer, VAT-Hidden Tax, Global Flat Tax Revolution, Cutting the U.S. Corporate Income Tax, Promoting Prosperity, Obama’s So-Called Stimulus, Obama’s Deferral Proposal, Case Against Class-Warfare Tax Policy, President Obama’s Dishonest Demagoguery on Tax Havens, Six Reasons Why the Capital Gains Tax Should Be Abolished, The Rahn Curve and the Growth-Maximizing Level of Government, a three part series on the Benefits of Tax Havens and a another three-part series on the Laffer Curve.