The Federal Reserve, which is in charge of our nation's money, is not owned by the government. It is a privately owned organization that works with the government; many times this relationship leads to disaster.
Whenever the government needs money, they issue bonds to the Federal Reserve, which in turn gives them Federal Reserve notes - money. This transaction creates more debt for our government, due to the fact that the money is in the hands of this private organization - our government is essentially "buying" it from the Fed.
The Federal Reserve can also set interest rates, which tamper with economic cycles.
Because the Fed kept interest rates low before the onset of the recent recession, it helped create the housing bubble, because people were more eager to take out mortgages, which were cheaper. As we know, this bubble eventually burst because of the abundance of subprime mortgages, leaving many Americans in trouble.
The Fed supports an economic system in which money is constantly being created and where inflation is always prevalent. Changes need to be made.
themoneymasters.com
Source:
http://articles.businessinsider.com/2012-02-09/wall_street/31040431_1_interest-rates-big-banks-member-banks/3
This is a reputable source because Business Insider is a well-known magazine.
Whenever the government needs money, they issue bonds to the Federal Reserve, which in turn gives them Federal Reserve notes - money. This transaction creates more debt for our government, due to the fact that the money is in the hands of this private organization - our government is essentially "buying" it from the Fed.
The Federal Reserve can also set interest rates, which tamper with economic cycles.
Because the Fed kept interest rates low before the onset of the recent recession, it helped create the housing bubble, because people were more eager to take out mortgages, which were cheaper. As we know, this bubble eventually burst because of the abundance of subprime mortgages, leaving many Americans in trouble.
The Fed supports an economic system in which money is constantly being created and where inflation is always prevalent. Changes need to be made.
Source:
http://articles.businessinsider.com/2012-02-09/wall_street/31040431_1_interest-rates-big-banks-member-banks/3
This is a reputable source because Business Insider is a well-known magazine.
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