Finance, Forex and Investments

How did free market capitalism ruin the economy when the U.S. has a central bank?

Because f you have a central bank (Federal Reserve) then, technically, you weren't a free market economy to begin with.

Public Comments

1. All is relative Show me a nation without a central bank? Free market economies are not solely defined by the presence of a central bank. It is more defined by the level of regulation and intervention and centralized planning, rather than the presence of a central bank - which regulates the money supply and fixes interest rates. Banks are also free to ignore the interest rates the central bank suggests too. They don't have to do what the Central Bank says. It's just that nobody else can print money. And the American Central Bank is privately owned as well. It just so happens to have a government sponsored monopoly on currency production. But technically, the Central Bank need not follow any directive from any Govt. agency - including the President. Would you rather go back to the good old days of privately owned currency? Those were good times when people had to manage a half dozen different currencies and keep track of who would accept what. And always the wonder if any particular bank would actually honor their own currency.
2. Your right. Anytime the government interferes with the economy, we move more towards command rather than free market.
3. Don't forget that government entities Fannie and Freddie helped out with the guidance of Barney Frank.
4. You're right. That's why the Federal Reserve needs to go. And anyone who calls themselves a Capitalist and doesn't agree with me is a moron.
5. Well, we had a free market before the central bank and you know how the feds love to fool everybody.
6. On the contrary the Federal Reserve Bank is destroying the US. Regards.
7. Because using capitalism in the good times and looking for socialist solutions in the bad times is what took us where we are.
8. The US has shadow banks that are not affected by the central bank. This unregulated entities created the credit default swaps and securitization of debt that are the causes of this current crisis.
9. Of course, the Federal Reserve is the Elephant in the room that nobody wants to notice.