Is The Federal Reserve Friend?

Is The Federal Reserve Friend?

The Federal Reserve has the ability to create legal tender through mere bookkeeping operations.

By the simple act of buying, for example, $10 million worth of bonds, the Federal Reserve literally creates $10 million worth of money and adds it into the system. The seller’s account goes up by $10 million once the Fed’s monies are received. Nobody’s account gets debited for $10 million. This is a tremendous amount of power for an institution to possess, and yet the Fed shrouds itself in secrecy and is accountable to no one.

http://www.zerohedge.com/news/2015-08-21/federal-reserve-not-your-friend

 

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