On 05/31/2013 02:05 AM, Levi Pearson wrote:
> Anyway, there's plenty of places where the Fed's actions could be
> criticized, but it has generally done an excellent job in recent years
> of keeping inflation low and stable. Although I'm sure there's
> corruption there, as there is pretty much everywhere to some extent,
> it's not the big evil monster it's often made out to be, and it
> generally does a good job of keeping our currency stable.  There's a
> reason the Dollar is the most widely used currency in the world.

I guess time will tell.  I don't believe having a prime rate of zero is
sustainable.  Though it's doing a great job of enriching people at the
expense of those who are frugal savers.

I highly recommend This American Life's expose into the Fed and Money.
Episode 123, "The invention of money."  Fascinating look at what
quantitative easing, how the Fed influences the money supply, the effect
of banks and loans, etc.

http://www.thisamericanlife.org/radio-archives/episode/423/the-invention-of-money

Particularly fascinating is story about Brazil introduced a brand new
currency, and managed to fake everyone in the country out until there
was enough confidence to support the new currency that, like bitcoins,
was invented as it were out of thin air.


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