This link about the poor performance of the Federal Reserve made me realize that most people don’t understand the Fed at all.
First of all, the Fed is not part of the US government. It’s privately owned by its member banks. The Federal Reserve exists to benefit banks, not the people of the US. In fact the founding fathers of the US were very anti-central bank because they knew that the economy would be manipulated for the bank’s benefit at the expense of the people.
The history of banking in the US is fraught with disaster and fraud. Like Willie Sutton said, “Because that’s where the money is.”
Banks have an inherent conflict of interest when it comes to the economy. Putting banks in charge of the economy is like putting bank robbers in charge of banks.
