Reconnecting Wall Street to Main Street

Built on a foundation of sound money, the United States became one of the greatest industrial powers in the world in the 19th century. During that time, the interests of Main Street and Wall Street were closely aligned. Main Street went to Wall Street to finance new investment, and paid back its financiers out of profits from successful ventures. Under the reigning gold standard, a dollar was worth a fixed amount of gold - so borrowers and creditors knew exactly what to expect down the road.

But with the passage of the Federal Reserve Act in 1913, the United States Congress delegated its authority to issue currency to a new central bank called the Federal Reserve. The Fed could print new dollars at will, making liquidity available to Wall Street at the expense of Main Street.

A return to honest money could restore the economy - maybe - but politicians, except Ron Paul, do not have the courage to propose it, endorse it or even talk about it.