Economics 101: Without the BS

[SoonerATC]

Article from Silver Bear Cafe explaining the relationship between the Fed and our own government. Highly enlightening read.

You won't look at your money the same way after reading this.

http://www.silverbearcafe.com/private/04.09/economics101.html

 

[inactive]

To say that the Federal Reserve system is a private company is a fallacy, as it was 1) established by the government, 2) still is accountable to the US Congress, 3) can be eliminated by the legislature as quickly as it was implemented, and 4) is overseen by board members appointed by the President and confirmed by the Senate. It is as much of a private company as Grand River Dam Authority or CompSource are in Oklahoma.

To claim that the money is printed by the Fed is the true cause of inflation is a another fallacy, as any bank involved in the lending of money based on deposit reserves creates money, with or without a central bank. There is far more money in the US banking system than what is printed in physical legal tender. The concept of paper money being the basis of inflation is extremely outdated.

 

[poopgiggle]

Oh dear Lord.

The description of Keynesian economics is unbelievably wrong.