I actually believe that many people are missing a potentially *huge* point here, and that is that the Federal Reserve is a federally chartered institution, not a federal institution. In other words, they are a for-profit concern with the license to print money. I'm reading a book called Wealth and Democracy (Kevin Phillips) right now, and he points out that many of the immense fortunes in world history have been created by priviledged corporations with exclusive government franchises that were basically handed to them (the big banks, early state banks and the right to print money, railroads and federal land grants, television stations and public spectrum, etc.)
If I'm not mistaken, the Fed is in fact, first and foremost, in the business of making money, and their exclusive federal charter helps them to do that. If, in the process, they happen to benefit society, it's a fortunate outcome, and they must advance that perception in order to maintain the charter. However, when it comes down to it, they will not sustain a large loss in the name of societal gain.
BC |
