Nick: Referring to a central bank as a 'central planner' is ignorant and tells people more about you than it does about the Fed.
Deuce: Could you explain to me why?
Nick: Telling people that the Federal Reserve has the ability to create money at will… is technically accurate, but not useful. It's an attempt to frighten, not enlighten.
Deuce: The fact that, say, the Fed enabled the money supply to double in the last dozen years is not useful? That it could have easily restricted it to “only” 50%? That they could have also made it 1000%? Why is it not meaningful to you?
Nick: The Federal Reserve pays all of its profits to the Treasury as a franchise fee; it is run as a non-profit. The statement that the Federal Reserve "charges us interest" is a lie born of ignorance.
Deuce: I was imprecise. The Fed buys $10bn in open market operations (this actually reduces effective interest, because Fed doesn't keep the interest). But then (pay attention here) This enables its client/owner/benefactor banks to piggyback $100bn+ of additional bond purchases. We only get charged on the latter $100bn. Is that better?
BTT!!!