Quote
Originally posted by: starkiller
I think that is technically incorrect (Ric and JediSage). The Fed may print money, but I believe they only do it on the orders of Congress.
I'd have to look into it though. I could be wrong.
The Fed is a private bank. The only thing it requires approval for is the appointment of the board chairman, thus giving the illusion it's under federal control. They can print money at will.
Ricar: The only thing the Fed needs to print money is a law stating they can, which was passed in 1913. Because we're no longer bound by a currency based on precious metals, the only limit on the amount of money that can be printed would be if we ran out of paper and ink.
Something else of note is that in tandem with the Fed Reserve Act the national income tax went through. An interesting tidbit: The law was never actually legally ratified. There is a growing movement of people who are legally challenging the law and winning.
Like Lenin said, the best way to crush the middle class is through taxes and inflation.