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Originally Posted by Tony
We are talking about a private banking institution, who by law can create dollars out of thin air. All with NO oversight, rules or regulation.
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That's not true. The Fed is run by a set of regional governors appointed by the President and confirmed by the Senate, with a clear mandate: manage inflation, and maintain full employment. There is a need to keep it from being directly managed by the government, because we don't want politicians managing our economy for political gain.
Creating dollars out of thin air has been the way of the US currency for a long long time, and it is a necessary tool for managing the economy. See Spain, Greece, and Italy as we've been discussing.
I don't see conspiracy and criminal conduct by the Fed, I see principled bankers doing their best in an unbelievably complex environment. Sometimes thing get missed and asset bubbles arise. Sometimes they get flattened in time (dot com), and sometimes they don't (housing).
I'm sure we aren't going to agree on this.
