How many people actually know what this is?
Why are they in charge of US currency?
How many people actually know what this is?
Why are they in charge of US currency?
I think a lot of people know exactly what it is. It's a private bank empowered by the Federal Reserve Act to act as the central bank for the United States.
---------- Post added 2013-02-11 at 03:07 PM ----------
So what? That has nothing to do with what he said.
'Twas a cutlass swipe or an ounce of lead
Or a yawing hole in a battered head
And the scuppers clogged with rotting red
And there they lay I damn me eyes
All lookouts clapped on Paradise
All souls bound just contrarywise, yo ho ho and a bottle of rum!
He said they aren't in charge of US currency. All my money says federal reserve note on it.
If you will pull a dollar bill out and take a look at it, you will notice that it says "Federal Reserve Note" at the top.
It belongs to the Federal Reserve.
The U.S. government cannot simply go out and create new money whenever it wants under our current system.
Instead it must get it from the Federal Reserve.
So when the U.S. government needs to borrow more money (which happens a lot these days) it goes over to the Federal Reserve and asks them for some more green pieces of paper called Federal Reserve Notes.
The Federal Reserve swaps these green pieces of paper for pink pieces of paper called U.S. Treasury bonds. The Federal Reserve either sells these U.S. Treasury bonds or they keep the bonds for themselves (which happens a lot these days).
So that is how the U.S. government gets more green pieces of paper called "U.S. dollars" to put into circulation. But by doing so, they get themselves into even more debt which they will owe even more interest on.
So every time the U.S. government does this, the national debt gets even bigger and the interest on that debt gets even bigger.
'Twas a cutlass swipe or an ounce of lead
Or a yawing hole in a battered head
And the scuppers clogged with rotting red
And there they lay I damn me eyes
All lookouts clapped on Paradise
All souls bound just contrarywise, yo ho ho and a bottle of rum!
I think some people think that, but a lot of us, especially those of us on a site like this that talks about it regularly, or those who have gone to University, know exactly what it is.
My view on it is that it's fine. I think that the Fed has generally acted sensibly and responsibly throughout its history, to the benefit of the US economy.
'Twas a cutlass swipe or an ounce of lead
Or a yawing hole in a battered head
And the scuppers clogged with rotting red
And there they lay I damn me eyes
All lookouts clapped on Paradise
All souls bound just contrarywise, yo ho ho and a bottle of rum!
you mean like their admission that they were responsible for the great depression? really responsible...
http://www.federalreserve.gov/boardd...08/default.htm
Bernanke is particularly interested in the economic and political causes of the Great Depression, on which he has published numerous academic journal articles. Before Bernanke's work, the dominant monetarist theory of the Great Depression was Milton Friedman's view that it had been largely caused by the Federal Reserve's having reduced the money supply. In a speech on Milton Friedman's ninetieth birthday (November 8, 2002), Bernanke said, "Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna [Schwartz, Friedman's coauthor]: Regarding the Great Depression. You're right, we did it. We're very sorry. But thanks to you, we won't do it again."
Last edited by helheim; 2013-02-11 at 03:31 PM. Reason: added quote
Imagine if congress had direct control over the printing press instead.
Yeah... You don't wanna go there.
The US can borrow extremely cheaply (the yields on US bonds are still very low, go compare it to other countries in the world), so your idea of the interest increasing and increasing makes no sense.
'Twas a cutlass swipe or an ounce of lead
Or a yawing hole in a battered head
And the scuppers clogged with rotting red
And there they lay I damn me eyes
All lookouts clapped on Paradise
All souls bound just contrarywise, yo ho ho and a bottle of rum!
i added the quote to my post for clarification. i'm sorry, but your ignorance is making me very angry. i'm checking out of this thread before it gets me in trouble.
edit: before i go, i leave you with this video, which explains quite clearly how fractional reserve banking is inherently flawed.
http://www.youtube.com/watch?feature...MBOB4Gg#t=413s
Last edited by helheim; 2013-02-11 at 03:39 PM.
i do not spew profanities. i enunciate them clearly, like a fucking lady.
http://us.battle.net/wow/en/characte...%A8lh%C3%A8im/