Quote:
Originally Posted by duga
It most definitely influenced the problems we have right now. More money is put into circulation based solely off "borrowing" from the Fed. That increase in circulation devalues the current money in the market, and while I agree inflation isn't really the issue at this point in history, the fact that the system allows for a virtually nonstop increase in the national debt is the issue.
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It's the Fed Reserve's responsibility to control the money supply, not the banks. Not sure how you go about saying that it increases the national debt either.