Here we go with the vocabulary thing again. I promise to make this easier than your last root canal. The Federal Reserve Bank is a central bank. Central banks are created to control and manipulate the money supply. The money supply is the aggregate total of all the money in circulation in an economy. It is often referred to in the media and the industry as M. Controlling the money supply frees governments from the responsibility of living within their means. It makes it possible for them to counterfeit money. All governments have laws making counterfeiting their currency illegal. That is because all governments have a monopoly on counterfeiting and do not tolerate competition in the business.
Governments counterfeit money in the exact same way all counterfeiters do; they print it, and slip it into circulation into the economy. They spend it. They spend more money than the economy produces because they do not want to live within their means. They do not want to live within their means because they use money to buy votes. They give out goodies in return for favors; favors in the form of legislation that promotes the welfare of one group over another group; favors that line their individual pockets, reward their friends, punish their enemies, and above all, favors that get them re-elected.
Other reasons are given, of course, for the existence of the Fed. But it is axiomatic that all governments seek continual expansion of their powers, and control of the public purse and the power to tax is the Holy Grail for power seekers. The founding fathers of this country feared government more than anything, and the Constitution they framed was to protect us, not from foreigners, and not from each other, so much as from our elected government itself. The debates about economic policies are a sideshow and a distraction; the main event is the relentless expansion of executive power and the quiet transfer, not only of wealth, but of personal liberties as well. Without economic freedom based on individual rights, private property, and the right to keep and dispose of our earnings as we choose, there is no freedom at all. Read more..