Did you know that the Federal Reserve creates money out of thin air?

Yes, that is how the base money supply (M0) is regulated by the buying and selling of publicly held bonds using 'thin air' money. The theoretical premise is to be able to supply the economy with sufficient cash to operate fully but not enough to become inflationary.

For comparison, read up on the gold standard, and why virtually every country abandon it in the 20th century. In short, if your money supply cannot keep up with a growing economy, it means fewer goods sold and more unemployment because there is insufficient cash in the system.

And the fractional reserve as an 'evil' is the mythical portion.

First (using a min reserve of 10%) it doesn't mean that if you deposit $100 in your bank, that the bank can loan out $1000. It means that your bank can loan out $90. The '10 times' comes from a theoritical limit if every loan ended up deposited and reloaned at the max.

The alternative to fractional reserve banking is 100% reserve banking which is like keeping your money in a safe deposit box. That is, the bank cannot loan any of your deposit out. In these arrangements, the depositer gets no interest and generally has to pay the bank a service fee for taking care of their money.

In practice, very few banks ever loan out their maximum reserve. For checking accounts, they tend to maintain 60-70% reserves due to the high turnover. For savings, it's more along 30-40%. For CD's and time deposits, they are more likely to loan out the full amount.

'Tis why Ron Paul was crying for an audit of the reserve and supports abolishing the federal reserve.

It is also why printing a ton of money to cover a deficit, only causes inflation making our money virtually worthless.Thankfully it has not gotten to the point of how it was in Germany after WWI when they were wheeling their money around in wheel barrows and bags because you needed so much to buy just the necessities. People would leave it outside and the wheel barrow or bag would get stolen and the money would just be laying there.

That is why they were created , and everyone who has taken even one economic class knows what they do. What you do not know is that before the creation of the FED that banks created money on their own and and now only the FED can. The frational reserve banking system provides the money needed for a capitalist economy to operate and existed long before there were central banks.

I think the Fed is where most of us, independent of party, can come together. The Fed makes my skin crawl. Operates independently. Determines the nation's fiscal policies. Has never been audited. YIKES! It's leaders are not elected, not overseen in any way and do not provide much information regarding their inner workings. The Fed is our secret government.

And they charge the US government interest for every dollar in circulation. Quite the racket they have going on there. What's also quite absurd is GM claims they paid back their loans in full...which they did from other loans from the same source. Just using one credit card to pay off the other.

Yeah, isn't that your wonderful capitalism at work?! You should be celebrating!

The Fed prints money out of thin air. Then, Corporations get to borrow that money from the Fed for ZERO percent, and they then turn around and invest the money they got for free, in government bonds, which charge the government a few percent on those bonds they bought with money they borrowed for nothing, and those corporations earn a profit on their investments of the money they got for free.

So, the government gives them money, then they loan the government that money back, and they collect even more money in interest on the money they loaned to the government, which was all printed out of thin air.

THAT is your capitalism.

How can I cash in on that scam???

the FED is a private org full of the worlds true criminals.

its my opinion that they have started (so they could finance both sides) every war in the last 100+ years.

in the end the federal reserve is the worlds population control center

Yes, and it's good to see that more and more people are finally beginning to understand how this corrupt institution is responsible for almost every economic problem we've had since it's inception in 1913.

They don't even have to do all of that. They own the printing press that prints the money. They simply press the print button and wallah. The problem is every time they print a dollar the dollars we have loses value. The fed needs to be abolished.

In meager attempt to cover the checks, they pressure China to do the same thing.