The FED is only one part of the problem. Fractional reserve banking is the other. The solution is to move the FED into Treasury. Then if a bank wants to make a loan to a customer it goes to the Treasury. The Treasury lends the bank the money. The bank pays the Treasury interest on the loan. It then lends the money to their customer at a higher interest rate, the difference in rates covers their cost of initiating the loan.
Even FRB is sanctioned by the Fed. Sure, it's possible for banks to lend out more than they have for lending, and this can be done even without central banking, but the Fed increases the degree and length for which this can be done, resulting in an ultimately worse crash than purely private FRB.
The solution is not a simple abolition of the Fed but a growing understanding that money not withdrawn is not equal to money to be lent out, and receiving 'interest' on deposits is no solution.
It will not matter given a capitalist system which requires increasing debt to support increasing production and consumption of goods, and worse given competition and more moving to the service industry, esp. financing.
It's not considered 'capitalist' in the free-market sense if the debt is made possible by a coercive monopoly on money. Moving away from actual production and into 'overfinancialization' is a symptom of the Fed and other government interference, NOT a competitive system at all.
Obviously capitalist, as concentration of power among a few will in the end allow them to do anything they want.
Or were you hoping for some regulatory body to avoid that? *-)
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I am proudly anti FED (federal reserve, private central bank), I am not an anarchist by any means, I believe in rule of law, but I also believe in sound monetary system.
Imagine my surprise when I found I am on surveillance list, which bothers me because it is further waste of money by our debt loving government.
Complete Guide to Government Surveillance and Technology 2012
As Experienced On My Own Skin
http://govspyinyourhome.blog.com