The government is already printing money

The government is already printing money

People tend to be uncomfortable with the idea of “the government printing money,” and given some ugly incidents with hyperinflation in recent history, this is understandable. But opponents  should consider that when the Federal Reserve buys government bonds, it is essentially providing a way for the government to print money and lend it back to itself, with the banks taking a cut, a process that has been dubbed “stealth monetization.”

So in fact this dreaded money-printing is already going on, and has been for some time. Even when the country was technically on the Gold Standard, there wasn’t nearly enough gold to exchange for all the dollars in the economy at the set rate of exchange.

So the question then becomes, not should we print money, because we already are, but why are we giving the banks a cut of it for doing essentially nothing?

And why are we letting the banks, through the Fed, control how much money is printed and what it is bought with it?

The Fed is the legally deputized agent of Congress in charge of the currency. Its authority comes from Congress and can be returned to Congress.


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