Money and Banking Essay

1496 WordsSep 11, 20156 Pages
Money and Banking Final Essay $15,000,000,000,000. Is that even comprehendible? Mt. Everest is the tallest mountain in America, and is just over 29,000 feet. If we were to stack up the fifteen trillion dollar debt, the top of the mountain would only reach eighty-one million dollars. The U.S government spends that kind of money in about eleven minutes or so. To reach fifteen trillion dollars there would have to be 185 mountain stacks of Mt. Everest. What does this say about our government? The Central Bank, or also known as the Federal Reserve, is the mastermind behind all this debt in today’s society. I believe the United States should not have a central banking system, and throughout this paper I am going to state my reasons why I believe this. The Federal Reserve supervises and regulates banks, implements monetary policy by buying and selling U.S. treasury bonds and steers interest rates. This gives the Federal Reserve a lot of room to control the economy. Since the beginning of the Federal Reserve, they have misled citizens that the U.S. dollar is an asset. However, the American dollar is actually a debt. The reason this is true is because every dollar in circulation today is basically being borrowed. Which means every dollar is creating interest. Meaning we have to pay back what we borrowed plus some. The debt is being created on behalf of the term known as “lender of last resort.” The Federal Reserve buys the treasury bonds that are not sold to the public. Though, they do not buy the bonds with their own money. They instead print off new money, creating money out of then air, to purchase these bonds; creating more debt for you and I. Going along with the U.S. dollar, the fiat currency is currently what America is using for the medium of exchange. While reading Bankruptcy of Our Nation, it goes into detail about other countries also using fiat currency. I

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