Should the Federal Reserve be abolished?

[Kobuk]

Should the Federal Reserve and "flat money" (Dollar bills) be abolished, and the Gold Standard be brought back?
A few days ago, I got into a debate at work with my boss about money and gold How it started, I don't remember. Today, he lent me a book titled "The Creature from Jekyll Island":
http://www.amazon.com/Creature-Jekyll-Island-Federal-Reserve/dp/0912986395/ref=pd_sim_b_3
I've only gotten to page 6 so far since bringing the book home, but already, I've been very curious to read the book and know the "truth" about the history of money and what the Federal Reserve does and why it was created.

[Yip]

Though I've not read that book, I have heard a lot of conspiracy theories about the federal reserve and banking and so forth. And this looks like it might be similar. That doesn't mean that it doesn't have some good information in it. Just...  I'd be very careful to check the sources. (which is generally a good idea anyway.)

[Avor]

Should the Federal Reserve and "flat money" (Dollar bills) be abolished, and the Gold Standard be brought back?

I believe the gold standard is more stable concept, but I don't how the change in the USD's value would effect internation trade and loans.

[Narei Mooncatt]

I know I don't like the idea that the Federal Reserve can just print and destroy money as it wishes, thus able to directly control the value of the dollar. And if I'm not mistaken, the Federal Reserve and our current form of currency isn't even part of the U.S. government, but basically what was agreed upon at some point to be accepted. That also makes me a little skeptical of the current system. At first blush, I like the idea of going back to the gold standard (or any standard based on a tangible asset) because it may bring a bit of stability compared to the world markets. I'm actually not that informed on how monetary systems work to compare the two, so I'm not really set in one belief over another.

[Kay Alett]

I got no clue on monetary values but I must admit I think it'd be pretty cool to carry gold like in some kind of ancient world.
Only problem is; with paper money or cash in the bank you can carry lots of money with you, gold however is very heavy and it might prove quite impossible to always carry a lot with you.

Heck just the other day I had $20 in quarters in my pockets (please don't ask why) and that in itself was pretty darn heavy!

[Sk Skunk]

I don't think the idea is to go back to walking around with chains of gold or silver to pay your way.  (need a Mr T smiley)

Going to a gold standard, would mean that printed money is backed up by a hard commodity, be it gold, silver, or possibly oil. The trouble is, that as long as people manipulate the value of these types of commodities, the price will still be unstable. So who gets to set these standards? What things will be the standards?

The idea behind a currency, backed by the "good faith" of a country, is not that bad of an idea. But the same players that have control of the current monetary process will work the system. No matter what, laws and controls that can and would be enforced, require people that can be trusted.

Who do you trust to make this type of decision?

[Foxpup]

I know I don't like the idea that the Federal Reserve can just print and destroy money as it wishes, thus able to directly control the value of the dollar.

The Federal Reserve doesn't print and destroy currency (not money) as it wishes, it prints and destroys currency as the people wish. If people want more currency, they'll draw on their bank accounts and get it. The Federal Reserve prints as much currency as is needed to satisfy the demand. Does this affect the value of the dollar? Not really, as it turns out. Hard currency only makes up a very small percentage of the amount of money, and in any case, the demand for hard currency isn't going to suddenly increase without some sort of major economic catastrophe, in which case the value of said currency is not your biggest problem.

[Yip]

Trying to switch to gold or silver or anything like that has a huge obstacle which I think is enough to stop it from ever becoming a reality short of some MAJOR catastrophe. That obstacle: The digital age needs digital money. You can't buy stuff on the internet using physical money. It just doesn't work.

[Chiscringle]

The gold standard simplifies things in one way but complicates them in another.  At the moment, from what I understand of economics, most nations have floated currency based on how people feel about the nation, whether it can pay debts, its GDP, long term prospects and the like.  Our money is like stock in the nation, not always based on reality but broadly speaking linked in some way to our well being.  If WE went to gold, a lot of nations might do the same and then it's a fight over who has the most gold to back their currency - and whether gold is worth anything.  It ties the national and possibly world economy to one commodity.  In addition, wouldn't that mean that nations like South Africa, who have a lot of gold still to be mined, may end up being major powers simply because they have so much gold?  GPEC (gold producing and exporting nations) would all be powers like OPEC is now.

I'm with Vararam, too.  There's a good chance a global currency may form not by design like the Euro but by necessity and evolution in a PayPal sort of format or like Square.