Loading ...There is a great illusion at work here. The Federal Reserve does not function in reality. The primary purpose of the Federal Reserve is and always was to keep the real powers-that-be in power. The Fed banksters are able to create and destroy money at will with no consequences whatsoever. None.
For instance, the Federal Reserve could absorb the entire US National Debt onto its imaginary books and then re-issue new dollars if they choose. This is precisley what happened in 2008. The Fed absorbed $14.7 trillion dollars of bad debt onto the magic books and then lent shiploads of cash to “banks too big to fail” at near zero interest rates. Where did that $14.7 trillion dollars go? The bad debt went into thin air …. the same place the Fed’s magic money is gotten! The actions of the US Treasury and the Federal Reserve do not obey the rules of reality. The
Federal Reserve was created to be an institution of power above logic and the law. The rest of us are stuck living in economic reality checked by supply and demand, consumer confidence, the law of diminishing returns, etc. To us, money is a symbol of value albeit based on nothing but hope the system does not fail.