“Americans would be better off if the Federal Reserve did not exist. The Fed devalues our currency by monetizing the debt, causing inflation.” – Thomas Massie
Rep. Thomas Massie (R-KY) has introduced a new bill called H.R. 8421, known as the Federal Reserve Board Abolition Act, with the intention of abolishing the Board of Governors of the Federal Reserve as well as the Federal Reserve banks. The legislation also aims to repeal the 1913 Federal Reserve Act, which established the Federal Reserve System.
Massie strongly believes that the Federal Reserve is responsible for the current inflation crisis gripping the nation. He argues that during the COVID-19 pandemic, the Federal Reserve printed trillions of dollars and loaned them to the Treasury Department, fueling unprecedented deficit spending. According to Massie, this process of debt monetization has devalued the dollar and led to the high inflation rates observed today.
In Massie’s view, debt monetization is a collaborative effort between various entities, including the White House, Federal Reserve, Treasury Department, Congress, Big Banks, and Wall Street. He claims that this coordinated effort disproportionately benefits the wealthy and connected while adversely affecting retirees whose savings are eroded by inflation. Massie asserts that the most effective means of combating inflation is the elimination of the Federal Reserve.
