Government prints up suitable bank notes. In the case of the USA, the bank notes are green. Large letter emblazon, "Federal Reserve Note" right at the top, where "United States of America" used to be. It is clear to all that know the meaning of that bank note, it is of no good to the USA. It is a bank note printed for the Federal Reserve.
The USA gifts those Federal Reserve Notes to the Federal Reserve. In turn, the Federal Reserve uses those said same notes to buy USA Treasury Notes & whatever else suits their fancy. Something magical happens. Those Fed Notes turn into "legal tender"... cash. Still green, but cash. The Federal Reserve in entitled to create monopoly-money as "legal tender."
Coincidentally, the Fed is charged with monitoring inflation. Never mind about that. Seems incidental.
Whatever the USA wishes to spend, the Fed obliges with that magical incantation turning paper notes into "legal tender." Then, to be sure things turn out profitably for the Fed, the USA must pay with more Fed Notes, plus interest. I is a never ending cycle... Until someone outside the racket stop the nonsense.
End the Fed. - Ron Paul
End the Fed, loaning you blind since 1913.
Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul ☑
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