''Does the Fed really monetize government debt?''

From GoldSeek


''If monetizing debt is understood to mean printing money to pay for government deficits, then the Fed is guilty.

The basics are quite simple. The federal government issues and the Fed buys interest-bearing debt certificates. The Fed pays for these securities by creating digits on a computer that represent dollars. In this Age of Ron Paul, more people are learning that the digits do not represent savings borrowed from the public. The Fed is not a financial intermediary; it is a money factory. And while factories under capitalism produce for the benefit of the masses, this factory cranks out dollars for the politically-favored, to the detriment of the masses. The Fed is thus an anti-capitalist, anti-free market institution. The 12 members of the FOMC decide how much money they need and create the digits on-the-fly, from nothing. The idea of Bernanke or other Fed chairmen printing money is a metaphor, but an accurate one. It’s simply more convenient for the Fed to create digits than to print money.''

read more