Stuff the Fed Res and the bloody greedy and sly banks. Let them fail, it's what they deserve. They are merely manipulating the latest bunch of stupid politicians and using this financial depression and taxpayer money to profit their business.

Bernanke should be tried for treason. The US voters who voted for the incompetent OBama and his idiot cohorts in congress need be shown their folly ... by the totaly biased US media fools. Fat Chance eh? Ha what a massive sick joke! That just won't happen and the Banks will prosper where they should have gone the way of all incompetent businesses.

Why can't you see the complete idiocy currently gripping America?

You are right Keith.The awareness is accelerating.Ron Paul now has the support of 46 congressmen to audit the Fed Res.The Fed is taking money from the tax payer and buy up the cheap assets which they help create.The money should be going to business.

The Fed is an abomination and they along with the IMF,World bank should be put into liquidation.

Jardine K Jardine,

You are misunderstanding the nature of a modern monetary economy.

Sovereign (federal) governments MUST spend before any new net monetary wealth can be created. Sovereign governement is the ultimate source of money, the genesis. They and they alone, are empowered to create and destroy money and they do this on a daily basis. Economic growth is ultimately tied to the willingness or unwillingness of sovereign governments around the world to create new money through their spending.

The world has greatly changed since neo-liberalism first started becoming popular around 30 or so years ago. Advancing technology has allowed governments to treat money much more like what it really is - an idea. An extremely usefull idea, but nonetheless only an idea, not a real, physical thing.

When a (federal, not state) government taxes you, the dollars subtracted from your account do not go anywhere. The taxation is not used to pay for anything and there is no stock of tax dollars sitting in any federal bank account. No transaction is made. The sovereign simply waves it's magic wand and compells that sum of money to "un-exist" when it electronically debits the account. A structure exists to account for this but it is an accounting structure for the purpose of recording who was taxed what, that is all. It does the same in reverse when it spends.

Sovereign governments spending is not constrained by currency reserves - they do not need to tax or borrow in order to spend. If they did, economic growth could not continue in the long run.