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Comment: But the Federal Reserve plays

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But the Federal Reserve plays

But the Federal Reserve plays little role in that. Remember, banks can create money out of thin air. The whole reserves-to-loan is a myth. As has been shown, the federal funds rate has very little effect on long-term interest rates. If it weren't for federal reserve actions, the short-term interest rate would head to zero.

The prime reason for the housing bust was because banks were giving out loans to customers who were not credit-worthy. That is not the fault of the Federal Reserve, that is the fault of market that was not properly corrected for fraud. The government didn't do it with regulations, and the market didn't too it was shareholders fell asleep at the wheel (as they frequently do).

Plan for eliminating the national debt in 10-20 years:


Specific cuts; defense spending: