COMMENT: The issue for me on the national level is debt-based money. And that’s what the Federal Reserve is basically doing, issuing debt based money or currency. I don’t see how we can have an honest monetary system if the currency itself always creates more debt for the American people. The politicians will always choose more debt as it enhances their power.
REPLY: The Treasury issues debt, not the Fed. The Fed in quantitative easing did buy in debt and issued money, but they are not the issuer of debt – that would be the politicians’ and the Treasury’s side of the fiscal balance sheet. These days everyone blames the Fed, yet no one attributes the crisis to the political process.
