[FreeAtlanta]

I am not a Ron Paul fan, but I agreed with his comments about just washing away our debt to the Fed.

It is freaking imaginary money anyway. They "create it" by adding numbers in a computer and then "loan it" to their crony politicians and make interest on that?????

Wipe it out and tell them to pound sand!

[cripplecreek]

I am not a Ron Paul fan, but I agreed with his comments about just washing away our debt to the Fed.

I feel the same way.

From what I can tell from the report is than $16 trillion in loans were paid out at 0% interest and I'm struggling to see where it was ever paid back. As far as I can see, its debt simply dumped on us.

[Dilbert San Diego]

I think this is something related to “fractional reserve” banking. I think some Freepers have greater knowledge than I do about that. But the idea of the fractional reserve is that money is created via bookkeeping entries, and then the money disappears as it’s paid back. However, the interest paid is money which does not disappear.

I’m sure my understanding is unclear, but, that’s what I’ve heard, that money is created out of thin air in the form of loans. And the money is there just because the banks and the federal reserve system all agree that these bookkeeping entries represent real money.