The Fed

Joe Salerno provides a brief description of fractional reserve-banking, identifies the problems it presents in the current institutional setting, and suggests a potential solution.

No matter how bleak the economy may be, the Keynesians are likely to say, “It would have been worse without us.” 

No matter how bleak the economy may be, the Keynesians are likely to say, “It would have been worse without us.” 

The American economy could not recover from legislative onslaughts by both the Republican and then the Democratic administrations. Individual enterprise, the mainspring of unprecedented wealth, didn't have a chance.

In spite of its relentless public relations efforts claiming the opposite, the Fed remains a leading reason for the impoverishment of working-class and middle-class families. 

In spite of its relentless public relations efforts claiming the opposite, the Fed remains a leading reason for the impoverishment of working-class and middle-class families. 

A single vote on the Fed's policymaking committees wouldn't make any real difference. On the other hand, the Fed will brook no dissent from the official media and academic narrative.

If the current thinking continues, the world’s central banks will buy whatever paper governments issue. The result by the end of the decade will be a Federal Reserve balance sheet totaling $40 to $50 trillion. 

If the current thinking continues, the world’s central banks will buy whatever paper governments issue. The result by the end of the decade will be a Federal Reserve balance sheet totaling $40 to $50 trillion.