"If he/Fed are not going to do their job then why have them?" The Fed is to keep inflation low and to maintain economic stability. You have only to look at history to see what a fine job it has done. After all, no one profits from instability and economic turmoil, do they? You should think of them as the wise fathers of the economy who have only your best interest at heart. True you are not blood-relatives to them, but you should think that they think of you as such - and why would they hurt you after all?
I'm no economist but going through http://en.wikipedia.org/wiki/Fractional-reserve_banking I didn't see any clear notification that they do ----- I like the part about history of Fractional reserve banking: At one time, people deposited gold coins and silver coins at goldsmiths for safe keeping, receiving in turn a note for their deposit. Once these notes became a trusted medium of exchange an early form of paper money was born, in the form of gold certificates and silver certificates. As the notes were used directly in trade, the goldsmiths noted that people would never redeem all their notes at the same time, and saw the opportunity to issue new bank notes in the form of interest paying loans. These generated incomeâa process that altered their role from passive guardians of bullion charging fees for safe storage, to interest-paying and earning banks. Fractional-reserve banking was born. When creditors (the owners of the notes) lost faith in the ability of the bank to exchange their notes back into coins, many would try to redeem their notes at the same time. This was called a bank run and many early banks either went into insolvency or refused to pay up.
The big problem is the overleveraged loans they are making using fractional reserve banking. They lend 20x what they have in reserve or for every dollar. Three guys do not pay and there is a problem. Boom and bust. Well the problem with allowing a private institution the ability to print money out of thin air and then charge a usury, is they could careless how much you draw yourself into debt. It is good business to them. It is not like they are losing anything. They will continue to print the money out of thin air, give it to eachother or the "owners" for free, and charge you the customer, or should I say the employee, of the united states corporation of america. The proletariat and the bourgoise, things never change. As long as people think they need dumb rulers, there will always be some dumb ruler to rule over them. So it is the thought that you think you need that keeps them in business. JFK signed an execuitive order to abolish the fed, printed something like $500k in usury free money, yes free money. Well you can see how people who had "vested interest" took hold to that.
It was the Knights Templars who created the banking system. An they still hold high office to this day. Exxon, doublecross, which is their insignia, is just one of their many tremendous arms. Call exxon and ask, they admit it.
The fed prints money for free and charges you for it, THAT is usury. You do not see the problem here?
oil at 90-94, gold 780-800, wheat a 850-900, trillion dollar sub-prime (try to get a quote) this stuff didn't get there from sound monetary policy
"The fed prints money for free and charges you for it" The TREASURY prints the money. They just do what the Fed tells them to do... If the member banks of the Fed get paid interest for the money loaned to the gov't that they told the Treasury to print, does that profit show up on their books? They should never have a losing quarter!!
"Central banks dont have to show profit or loss" That's good - can hide the profits because there won't be any losses.