The Federal Reserve is the problem. Here is the solution.

Federal Reserve Monetary Policy implementation put our nation's economy on the path to ruin, to destruction of private ownership and individual freedom.

In 2008, under President Obama and Chairman Bernanke, the Fed unilaterally implemented Modern Monetary Theory (MMT). They created massive amounts of additional money supply and thereby put us on the path to extreme dollar devaluation.

MMT ignores one of the immutable rules in economics: Money supply, the number of dollars in circulation, plays a key role in monetary theory and practicality. Central banks have one function, the prime directive: to uphold and maintain the value of the U.S. dollar.

The Fed is supposed to do so by controlling inflation, which is simply a decline in the purchasing power of a dollar. Sounds innocuous, yet this single element forms the basis of our entire economy. The important, foundational, idea is a stable: value in the medium of exchange, the U.S. dollar. Inflation destroys that basis for trust.

Maintaining the purchasing power of the U.S. Dollar is done through control of the number of dollars in circulation. More dollars in circulation decreases the value of every other dollar in circulation.

When the Fed "printed" 8 trillion excess dollars, starting in 2008, it started the economy down the path of extreme dollar devaluation — inflation. Instead of addressing the source of inflation — money supply — Jerome Powell attacked the wrong issue using interest rate increases. It is either criminal indifference or malicious intent.

Since the Fed's formation in 1913, the value, the purchasing power, of the U.S. dollar has declined 97%. Our central bank has done more to destroy the national economy than any communist, fascist, or Islamist has ever done.

After decades of watching the Fed, there can be no logical conclusion that monetary policy has been mishandled and manipulated to the detriment of our nation. Leaving the FOMC in control is insane.

This problem is still solvable. Decrease the supply of money in circulation. That also, fortunately, requires a commensurate reduction in national debt (U.S. Treasury Bonds outstanding) and federal spending. Both of these accrue benefit to the individual and to private business.

Jay Davidson is founder and CEO of a commercial bank, a student of the Austrian School of Economics and a dedicated capitalist. There is a direct connection joining individual right and responsibility, our Constitution, capitalism, and the intent of our Creator.

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