My Recommended Federal Reserve Policy

I am a big free market fan, and most of his principles I agree with but there is one hole in the theory. That is information, the Achilles heel of capitalism. We are in an 'Information Age' but we are still a far cry away from the ideal of perfect information. The more complex the market the more important that assumption is for market functions. The currency markets are some of the most complex and most sensitive to a lack of information. That makes them one of the very few markets left where I accept a beneficial role of government in the time it takes to advance our overall knowledge base sufficiently.

The reform I would advocate is to invest both privately and publicly in education and information technology research to move us closer to the perfect information ideal. At some point a critical mass of citizens will be sufficiently well informed, and have the tools to maintain it, for private currencies to be efficient. Until that day the Federal Reserve serves a positive purpose in the market system.

Also to note that precious metal based currencies aren't 'real' currencies anymore than any other currency, it's simply a European-traditional currency. I predict if and when there are private currencies they will mainly not be based on lumps of metal.