In ’08-09, some radical Republicans such as Ron Paul, had the notion of auditing and abolishing the United States Federal Reserve System. Their arguments were received by the establishment in both Political Parties as a laughing stock, or worse, subversive somehow to the United States’ economic and financial interest. How radical would a Republican and Conservative lawmaker need to be in order to propose such a notion? After all, what institutions in the world right now occupy more prestige, legitimacy, and power than the Federal Reserve System? These individuals must be conspiracy theorists for that is the only way to describe their obviously erroneous and incorrect assertions that somehow the United States Government would be better off without the Federal Reserve System.

Radical Republicans also abolished slavery.

The United States Federal System no longer occupies the same prestige as it did before the financial crisis in ’08 and 09. In fact, I assert that to the banking and corporate elites across the world, the Federal Reserve System is perceived as needing urgent “Renovation” or it poses a systemic risk to the world’s economic order. Brave members of Congress such as Ron Paul and David Brat, who were early champions of the ‘Tea Party’ Movement, were likely not perceived as Conspiracy Theorists by the very elites on top of many of the Institutions that they sought to reform.

Here’s why.

The Federal Reserve System is now responsible directly for the economic health and well-being of the world as the ‘lender of last resort,’ which is a wholly unsustainable ideological position for the financial institution to take. The Federal Reserve’s status as ‘lender of last resort’ means that the bank, which ultimately is funded by the equity position of key players that dominate the current financial order, has to purchase distressed assets to prevent financial panic.

The Federal Reserve System recognizes that once the world’s economy achieves such a state of collapse that these policies must be initiated, the financial system is forever degraded, both on ideological principle and very practically as these distressed assets can never truly be eliminated from the system. Their removal from the system can only occur as a “bailout” by taxpayer or by price inflation, again an untenable ideological position to take for the world’s financiers.

Proponents of eliminating the United States Federal Reserve System are likely in tacit agreement with those who work closely with the world’s financial system and the Federal Reserve. The System is simply unsustainable and served its purpose as a transitionary mechanism to connect the world’s financial system before a truly bi-lateral system that prioritizes national sovereignty can be put in place to negotiate world monetary policy.

The time has come for two reasons. First, the system is teetering on collapse. The crisis of ’08-09 was a literal experiment as to how much the Federal Reserve System could shoulder as the lender of last resort and as the primary bailout source of funds, superseding Treasury cash bailouts by Trillions, in the form of asset purchases. I am willing to concede that The Federal Reserve System, though it paints me to say this, served its purpose in that moment. While the economy never recovered, the System prevented a panic and collapse. It kept food on the store shelves. However, the recovery took too long and prevented the creative destruction of obsolete business models and firms, the direct antithesis of the free market ideology. We subsequently experienced an economic “stagnation” for almost a decade, a lost generation, and the evisceration of personal wealth through consumer goods price inflation. So while the bailouts staved off panic, nobody can assert definitively that they were worth it, even Bernanke, Paulson, and Geithner the architects of the strategy.

Second, the coronavirus induced financial tsunami that is on the horizon is much larger than ’08-09 as evidenced by the staggering bailout figures already passed in Congress. Unemployment is hitting much faster, and the coronavirus will have a lasting impact on the consumer spending habits of Americans, not to mention the plummeting of oil markets. Asset purchases will not be enough to stave off collapse though it is currently unforeseen if we will ever reach a “Black Tuesday” moment unless a “Black Swan” type of event induces panic in the markets. Nevertheless, the Federal Reserve System would not want to be sitting on top of a collapsing financial system, anyway, if they don’t have the tools to intervene!

Let’s do a “coup-de-grace” on The Federal Reserve System. Its what everybody wants. More importantly, the only “saving grace” right now is for the world, or the West, to transition to a much more sustainable financial and economic system. This includes a sovereign monetary policy where a World Treasury negotiates balance of payments using a “Gold-backed” or “basket” currency instead of relying on American fiat. Again, countless trade economists that operate within the International Reserve System through the World Bank and International Monetary Fund have long called for this! Again, these are very legitimate ideas originating as a reform movement within the International banking system.

What happens if we don’t make this transition right now? We are seeing the demons of the World War I and World War II era emerge across our society. A rising communist China is now openly hostile to Western Power, acknowledged by both the Trump and Biden campaigns. The West is again battling racial tensions against Black Americans and Jews in the form of a growing ideological call for a White Ethno-State. We cannot ignore these ugly realities. If our financial system falls then the only recourse will be socialism, whether that comes from a Leninist-style version influenced by Chinese foreign intelligence or a National Socialism influenced by White Supremacy.

The time to urgently “Renovate” our World Economic and Financial Order is now. But we must be open and honest about The Federal Reserve’s role in the “Renovated” Economic Order. The Federal Reserve has no role. It has served its purpose, it must be transitioned into something new.