The Instigator
danielawesome12
Pro (for)
Tied
0 Points
The Contender
JuliusMaximus
Con (against)
Tied
0 Points

Does the federal reserve help Americans

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Voting Style: Open Point System: 7 Point
Started: 4/25/2013 Category: Politics
Updated: 3 years ago Status: Post Voting Period
Viewed: 822 times Debate No: 32918
Debate Rounds (4)
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danielawesome12

Pro

I believe the federal reserve helps Americans.
JuliusMaximus

Con

I disagree, the federal reserve is a private bank that excises undo control over the value of our money.

"If the American people ever allow private banks to control the issue of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered."
-Thomas Jefferson
Debate Round No. 1
danielawesome12

Pro

I believe the Federal Reserve has saved America from a currency disaster
http://en.wikipedia.org...

-The Federal Reserve created the national currency. Before to the Fed, there were over 30,000 different currencies in the USA.
-The Federal Reserve protects small banks. Without the Federal Reserve, larger banks would have a great deal of power over small banks. The Federal Reserve controls inflation and deflation, keeping the country running smoothly in terms of finances.
-The Federal Reserve solved the Panic of 1907 http://en.wikipedia.org... (the panic was caused in part because of the San Francisco earthquake that destroyed 80% of buildings in San Francisco about 3,000 people died. http://en.wikipedia.org...)
-The Federal Reserve represents America and its financial interests. Without the Federal Reserve, the interests are represented by banks, which is a terrible financial option as banks are concerned about private rather than public interests.
-Banks are required to undergo an impartial, outside audit done by the Federal Reserve. If the Federal Reserve did not exist all audits take place internally, causing corruption among the banks.
JuliusMaximus

Con

First I will respond to my opponent's arguments.

"-The Federal Reserve created the national currency. Before to the Fed, there were over 30,000 different currencies in the USA."

This is not true, as the creation of currency a right given only to the Federal Government in the Constitution.

Article 1, section 8
To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;
[1]

This being said, the federal government alone has the power to coin money, and regulate it's value as is done by the Fed's control of interest rates.

"-The Federal Reserve solved the Panic of 1907 http://en.wikipedia.org...... (the panic was caused in part because of the San Francisco earthquake that destroyed 80% of buildings in San Francisco about 3,000 people died. http://en.wikipedia.org......)"

This cannot be true because the federal reserve act was not signed into law until 1913, after the crisis had ended.

"-The Federal Reserve represents America and its financial interests. Without the Federal Reserve, the interests are represented by banks, which is a terrible financial option as banks are concerned about private rather than public interests."

The federal reserve is a business at it's core. It is run by private individuals and concerns itself more with private interests and the interests of lobbying groups than the public.
Debate Round No. 2
danielawesome12

Pro

I wold like to respond to my opponent's argument
Even on debate.org it says there were over 30,000 currencies http://www.debate.org...
and the Federal Reserve did fix the Panic of 1907 http://www.bostonfed.org...
(The Federal Reserve Bank of Boston)
The federal Reserve isn't a business it's a government bank designed for the common good of the people.
Remember the government is only people and we have a good one that protects the people outside of government. Every government in the world is Slightly to Heavily corrupt, let me remind you America's government less corrupt then most, if not all.
http://www.federalreserve.gov...
JuliusMaximus

Con

Like I said, the Congress alone has the power to coin money.



The federal reserve bank of Boston is a completely different bank than The Fed we know and love today.



-The federal reserve bank creates money out of nothing, in fact chairman Bernanke was questioned about this by Ron Paul, on the subject of a certain 1.3 trillion dollars, Ben did nothing but nod.


-Mega banks such as Goldman Sachs, Chase, J.P. Morgan ectra have been taking advantage of the Fed to make massive amounts of money this is done using the U.S. Treasury carry trade. What happens is that the Federal Reserve lends huge amounts of money to the mega banks for next to nothing, and then these mega banks use all that cash to buy U.S. government debt.


-The FED devalues our Money, if you look, our dollar has lost 96% of it's purchasing power since the federal reserve was created in 1913.In fact, the value of the dollar had only lessened during major wars.



-The Fed is not really controlled by the government.
“Well first of all the Federal Reserve is an independent agency, and that means basically that a there is no other agency of Government that can overrule actions that we take."
-Alan Greenspan, former chairman of the fed.



-The fed is partially responsible for the great depression, as it continued to contract the supply of money after the stock market crash of 1929




-According to the Federal Reserve website"The twelve regional Federal Reserve Banks, which were established by Congress as the operating arms of the nation's central banking system, are organized much like private corporations--possibly leading to some confusion about "ownership." For example, the Reserve Banks issue shares of stock to member banks."

This proves that member banks, not the government owns the Fed. These member banks think of themselves as private corporations.

"The Federal Reserve Banks, however, consider themselves private corporations with private funding.

They possess some powers distinct from those of the Board, and they do not publish any FOIA regulations.

But the Federal Reserve Bank’s “discount window lending program,” which is the subject of Bloomberg’s

FOIA request, is regulated by the Board."

http://www.wlf.org...
-In fact, the federal reserve argued that it was not a government agency when fighting a FOIA request by Bloomberg.
Debate Round No. 3
danielawesome12

Pro

danielawesome12 forfeited this round.
JuliusMaximus

Con

Out of fairness I will refrain from posting an additional arguement.
Debate Round No. 4
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