Originally Posted by duga

Ok, so you obviously know what I am talking about then...OMO's determine the base money in our economy, which is at the discretion of the Fed. So if you also know how a fractional reserve works, how can you possibly say it isn't increasing our national debt? Anytime the Fed puts more money into circulation, it is through a loan. A loan the American people have to pay back. This results in a higher national debt.

I didn't say that this was the main reason for our current situation. I do think it contributed (in multiple ways), however, I simply was commenting on how a central bank combined with the way we manage our money is a horrible way to run a country. And it most definitely runs the country. Even the name of our system implies money, and if we plan on keeping it that way then we should really rethink the whole central bank idea.