The U.S. central bank, the so-called "Federal Reserve" or "FED" has loaned a completely unprecedented ~$2.5 trillion (with a "T") into existence, lately by buying-up U.S. Treasuries ($40 billion a month) and Mortgage-Backed Securities (MBS) ($45 billion a month) from Fannie Mae and Freddy Mac, currently the backers of nearly all U.S. mortgages.
By the Law of Supply and Demand, putting this $85 billion a month of buying power into circulation eventually dilutes the value of the dollar, which we experience as "inflation." But Mr. Bernanke, the current FED Chairman, says not to worry, the FED has things under control.
But what does his predecessor, former FED Chair Alan Greenspan say about the FED and control?
So, should we worry?
Labels: Alan Greenspan, Ben Bernanke, central planning, Federal Reserve, fiat money, inflation, SHTF