The first community (that I will refer as "the libertarian") object the institution of the Central bank from an economics analysis.
Austrian Economics teaches that an increase in the quantity of money does not confer any social benefit, that the central bank causes price inflation, redistributes wealth massively from the poor and middle class to the entrepreneurial and political class, is the cause of the business cycle that plagues western economies since the last 200 years(1), and is an indispensable instrument in financing the state wars and growth.
As such, it does not matter exactly who controls the central bank (being politicians, bureaucrats, or outsourced to private banks, or a mix of the 3), what are its institutional details, how it was created, or whether it is constitutional or not. A central bank that lowers artificially the interest rate by expanding bank credit will causes the negative consequences mentioned above.
The second community (that I will refer as "the primitivo-socialists") is a diverse crowd that oppose the Federal Reserve in the United States (you rarely hear them complaining about other countries' central banks) because it is allegedly part of a general secret conspiracy of elites, bankers, and/or Jews.
The main primitivo-socialists are the following:
- The FED was established under false pretences - that's true, but who cares? If liberty was achieved under false pretenses, it would still be good.
- It is Federal as much as Federal Express - as if being Federal as in USPS is better?
- It is "owned" by private banks -how many "private" companies do you know that their chairman is appointed by the president?
- They are charging interest on loan created out of thin air - true, but they give almost all of the interest back to the US Treasury each year - minus its lavish operating budget.
Basically, the FED is, according to the primitivo-socialists, a private owned institution controlled by a secret elite motivated by greed and profit, that only honorable, democratically elected, politicians can save us from. Sounds like a socialist rant against Wall-Mart, isn't it?
Because it is.
Primitivo-socialist often portrait themselves as being anti-socialists and as being in favor of freedom, but because of the fundamental lack of understanding of economics and political economy, they believe, in the end, in the same fundamental socialist ideology (but at a primitive level), that only the government can save us from those powerful individuals.
The primitivo-socialists have produced numerous material, such as the movie Wake Up Call - New World Order Documentary.
That movie blames every thing on elite, "secret" individuals, and avoids carefully to criticize politicians. Very little is said about the actual impact in the economy of the FED, but there is endless rants about its establishment, the bankers involved, their meeting, etc, etc, etc...
I would resume that movie with the following quote from it:
Globalism, essentially, is the desire for one world government, one world military, one world economy. Which, on a broad philosophical basis, may not be that bad. But, the problem is, is it, we are being pushed in globalism by secrecy and by deceit and nobody's got a chance to actually consider the ramifications or consider the methodology that is being used to push us into this globalism. - Jim Marrs
So democratic globalism is fine and dandy: Socialists to the core.
Other primitivo-socialist work include:
The primitivo-socialists are basically a giant straw-man that promotes ever bigger government to save us from the government we have now.
Libertarians have to distance themselves from the primitivo-socialist, since any pro-FED attack will unavoidably merge both anti-fed positions into one, and easily dismiss it by demolishing the primitivo-socialist arguments.
Now more than ever, we must oppose the FED for the right reasons, and educate the public about why they should too.
(1) Note that even without a central bank, fractional reserve banking is sufficient to cause a business cycle.