Fed chair Ben Bernanke said it quite clearly (with a smirk) on 60 Minutes in 2009: “We simply use a computer to mark up the size of the account… It’s much more akin to printing money than to borrowing.”
He was (desperately I think) trying to knock down the notion that the taxpayers paid for the Wall-Street bank bailouts, so he admitted the simple fact that the Fed creates dollars at will. These guys aren’t nearly as bright as they think they are; they’re mostly just well placed and connected.
They’re playing the rest of us for chumps; it’s well past time to wake up and do something about it. (Democratic Socialism anyone?)
