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Federal Reserve Bank is not the US Government

Sure, there is a Board of Governors, of which Bernanke is the Chairman, and that much is part of the government. It’s also known as the Federal Reserve Board. These seven board members are appointed by the President and confirmed by the Senate.  However, the banks themselves are privately held. These banks create money by loaning more money than they  have in deposits, called Fractional Reserve Banking.

Our national debt is based on this system: Bonds are sold on the open market; the Fed buys these bonds with made-up money; and our Government secures these loans (i.e. pays the interest) with our taxes.

Sounds a little paranoid, doesn’t it? For more, check out this video The Money Masters. Beware, it’s long.

Go for a ride

If you looked through the photos of my engine swap recently you may remember the ‘81 El Camino that was given to my brother. He just finished that engine swap himself and recorded the maiden voyage.