[econjack]

Of course, he makes the basic mistake most people make in assuming that the Fed prints money. Not true. The Treasury prints money.

What troubles me more is the fact that last summer the gov't performed its first audit of the Fed since 1914, over the strong protest of Benanke. That audit revealed a total of $16 trillion dollars of off-the-book loans to foreign gov'ts, many of which are at virtually zero interest rates. The impact is that $16T is floating around in international markets, a flood of dollars that forces the exchange rate between US dollars and other currencies lower than it would be otherwise. If those loans were called in, you'd see a scramble for dollars like never before as foreign gov't tried to buy dollars to repay those loans. The value of the dollar would go through the roof. Why isn't the MSM screaming about this instead of concentrating on a bunch of spoiled brats who, for the most part, don't have a clue what they're talking about.

[SWAMPSNIPER]

The MSM is MARXIST. They exist to indoctrinate, not to inform.

This kid is articulate enough for some of the rats to understand some of what he says.

[mewzilla]

A long but well worth the read that answers your question....

America's Ruling Class -- And the Perils of Revolution By Angelo M. Codevilla from the July 2010 - August 2010 issue

[kenavi]

That audit revealed a total of $16 trillion dollars of off-the-book loans to foreign gov'ts.

U.S. GDP is $14 trillion, China's is about $6 trillion.

So which countries has our Fed lent $16 trillion to?

[Jack Black]

The term “print money” is used metaphorically by many economic commentators as short hand for increase the money supply. I disagree with some of the kids points but I suspect he knows a great deal about the mechanisms of the Fed.

[Jack Black]

The term “print money” is used metaphorically by many economic commentators as short hand for increase the money supply. I disagree with some of the kids points but I suspect he knows a great deal about the mechanisms of the Fed.