The US Federal Reserve is one of the most powerful institutions in the world. It controls and prints the US$ and derives its authority directly from the US congress. Texas Republican Ron Paul has recently commenced his role as chairman of the Congressional Committee that oversees the Fed. He sees the role of the Fed as completely unecessary and is damaging the US economy – causing inflation and unemployment.
There is an argument from some economists (from the right-wing) to remove the legal tender laws that say you have to use the US$. They see the role of choice be imperative and to able to use other means of exchange rather legal tender. With this choice it puts pressure on the monopolist and this is true whether you are talking about Telecom or the Federal Reserve. Sound money (coins made of, or paper backed by, a commodity such as gold or silver) ends the so-called need (and means) for the counter-productive meddling of ‘monetary policy’ and fake money by the Fed in our nation’s economy. On the contrary no one who studies the global economic issues today would relinquish a country’s capacity to direct monetary policy through a central bank. But as the US$ is the legal tender of the US and the world’s reserve currency, trust in the US$ is essential, and a forceful monetary policy provided that trust at a decisive moment.
However, it is important to remember that the reason why the US insists on the $ is that it can create inflation especially as the US has the biggest national debt in history and inflation will reduce the value of the debt.