[do the dhue]

because the money needed to represent all the wealth in America, the cars and homes we count as our net worth, not just our coins.

That makes a lot of sense. I never had it explained that way. I can swallow that pill.

Now, please allow me to ask what keeps the Federal Reserve in check and in balance?

[ClaireSolt]

Competition among the banks, each seeking its own self interest. I suppose they have some minimal government oversight, but interferance by the president is considered really bad form. I think it is a very transparent system. Each bank balances its books every night and transmits the info to the Fed. It watches to see that they don’t get overextended. That’s the real purpose. It sets rates at which they can lend each other money. This is done by boards made up of bankers. It is also divided into regions to prevent over centralization. It is just capitalism. Banks have to serve customers to stay in business so they push for the best deals. AS they ae the ones with the money, that’s where the real power is, not in the Fed.