The Deferral Reserve is a private banking group in the US. It is not a real government department. It is the same in some principles as the English banking system which was set up by the fr. kings in the renaissance trhough private chartered banks. Although it is government regulated, the banks own the money, not the government. Anybody who thinks that the US has total control of that money is not with the concept of a borrower and a lender. The US government borrows money from private banks. They do not mandate its printing. Its a fine point but an important one. Argentina has government banks, (30, count 'em) a holdover from the Peronist era, and look at the trouble they are in. They loan themselves way too much money.
Evermore people are being conditioned to accept and allow government control of the "financial world" and "money" i.e. government expenditures. They are spending it, why can't they say how much and where it comes from. Why not just script it with the stroke of a pen? Sure. Why not? Because you will pay for it, that's why and dollars to doughnuts the minimum wage is not enough to do that and live too. Governments can only be given as much money as they can afford to pay back in due time. This can only be as much as their people can pay in taxes and earn a decent living. Only as much labour-wealth as their people generate. Something has to regulate this and the interest rate is the way the governments have chosen to do this in part. What we have to do is get government spending and borrowing down by and exchequer and cut-back system such that the balloon will not overfill. Then taxes will recede, production increase, and government will be able to engage in capital expenditures instead of departmental fattening.
It is the not the government's money. Its the people's. There is no government entity that earns money, so money cannot be "produced" by government. (Note, the conservatives are right to sell Ontario Hydro. Crown corporations are an abomination.)
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