ixtow: On what grounds is the Fed to be the watch dog? That would seem to imply that the Fed is in the more dominant position. Both the state and the fed are guilty of curbing our liberties (I would say more the latter). I would argue that the state has power to rule and regulate according to their own constitution.
Granted, if I don't like one piece of legislation, I'm not going to up and move away. But if a state has a history and reputation for severely curtailing liberties, I am going to up and move.
According to the social contract theory, we do purposefully give up some rights in order to be governed. There are limits to our freedoms--I can con conceal carry nuclear weapons, commit libel, etc.
The point is, this is a democracy where the people ultimately rule via representation. I don't want people in DC, NY, CA, IL to tell me how to live in KY. I live in KY so I shall be governed by the Commonwealth. Whatever the majority of people want in KY, it should be law--providing its harmony with the KY Constitution.