- Ward Williams
- Bettendorf, IA
- United States
Is the Federal Reserve a false necessity, created to redistribute wealth from bottom to top?
The United States no longer uses the gold standard as backing for it's monetary system. Instead our money is created by fiat, that is, the Federal Reserve simply says it exists. The Federal Reserve, which is not a government entity loans us the money and we pay it back with interest. As a middle man isn't it in the Federal Reserve's interest to loan us as much money as it can? Given the obvious incestuous relationships between money and power in Washington, is it equally beneficial for Washington to concoct reasons for the government to need money?
I don't really have a problem with fiat money since anything will assume whatever value we place on it, but why are we paying a middle man to fabricate it from thin air? Why are we borrowing money from someone else when we could borrow the money from ourselves, much as borrowing from a 401k. We borrow from ourselves and pay ourselves back, with the same interest. That interest would then become income, rather than expense. Given that fiat money is imaginary, isn't then the debt imaginary too?