For a moment, imagine that there is a privately-owned
organization in the United States that can create U.S.
dollars out of thin air whenever it wants and can loan
that money to whoever it wants to. Imagine that this
organization is able to act with the full power of the
U.S. government behind it, but that nobody in the
organization is ever elected by the American people,
and that for all practical purposes the organization is
not accountable to the president or to Congress.
Imagine that the organization is able to make trillions of
dollars of secret loans to banks, to foreign governments
and even to their close friends without ever having to
face a comprehensive audit.
Does that sound preposterous?
Well, such an organization actually exists. It is called
the Federal Reserve, and today we found out that once
again the Fed is going to be taking huge piles of your
money and loaning it to commercial banks in Europe.
The Congress cannot overrule this decision. Neither can
Barack Obama. Because it has so much power, many
refer to the Federal Reserve as "the fourth branch of
government", but unlike the other three branches of
government, there are basically no significant "checks
and balances" on the Federal Reserve.
If you don't like the fact that the Federal Reserve is
racing in to help big foreign banks survive the European
debt crisis that is just too bad. The Federal Reserve
pretty much gets to do whatever it wants to do, and
the folks over at the Fed simply do not care whether
you like that or not.
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Sadly, most Americans know very little about the
Federal Reserve. In the United States today, most
Americans graduate from high school without ever
learning much of anything about the Fed.
But if you really want to understand what is going
on with our economy, it is absolutely critical that
you understand the Federal Reserve.
The following are some more reasons why you should be
upset about what the Federal Reserve has been doing....
(Must read.)
