The Fed's Folly by Scott M. Rosen

Scott Rosen writes:

"There is probably no better indication of just how powerful the state has grown since the founding of the republic than the fact that the citizens of this nation disinterestedly sit idly by while their government engages in behavior that would send these same folks to prison. The US government can attack foreign nations and cavalierly dismiss the loss of innocent civilian life as collateral damage rather than murder. It can forcibly extract money and property from whomever it wants, yet distinguishes between such confiscation and criminal theft.

"While the warfare-welfare state is afforded the right to commit infractions that private citizens are proscribed from engaging in, its operations are underwritten by the nation’s central bank, the Federal Reserve. The Fed is responsible for managing the nation’s monetary policy and has the sole legal authority to expand and contract the supply of money in circulation...

"Here’s the key, though: How does the Fed purchase existing debt and thusly conduct this convoluted operation? It simply creates the money out of thin air! When the FOMC buys government debt or sells it at a slower rate, it is said to be easing its monetary policy. When it does the opposite, selling government debt or decreasing the rate it purchases it, the Fed is tightening its monetary policy.

"Amazingly enough, if a private citizen decides to reproduce US currency and then circulate it, that’s referred to as counterfeit, but if the government essentially does the exact same thing, it’s called expansionary monetary policy...

"Counterfeiting is illegal for a reason. It undermines the value of the currency, and it is effectively stealing. Like theft and murder, however, the state seems to believe the rules that apply to the citizens don’t apply to it. Some might protest that it is a different situation when the government engages in theft (taxation), murder (war), and counterfeit (monetary policy). That’s true: When the state commits these acts, the results are far more widespread and devastating."

The Fed's Folly by Scott M. Rosen