The Federal Reserve Goes into Defense Mode in the Washington Post: Five Myths About the Federal Reserve

The TSA isn't the only entity under fire in this country. While the TSA has temporarily taken the focus of the Federal Reserve, the outrage for the Fed still his hot across the United States. So is it any wonder spin is coming from the Washington Post defending the Federal Reserve?

The Washington Post recently published "The Five Myths About the Federal Reserve." This is the most dishonest journalism I have seen in some time. The article was written by Greg Ip. Here are the five myths, which I think are easily to disprove.

1. By printing money, the Fed will create runaway inflation.

Have you seen gold prices lately? Food prices and oil prices as well after they announced they were going to print another $600 billion up to $1 trillion. Your paycheck isn't keeping up with the prices is it?

2. The Fed is endangering the global recovery by trying to drive down the dollar.

When you print money and inflation occurs, the debt you owe actually lessens based on the fact the dollar isn't worth as much as when it was lent. If you own trillions of dollars and other economies are counting on the value of what they lent to be maintained and not drastically lowered, then the current Federal Reserve policy of flooding the economy with money has an effect on other economies as well, especially those which purchased the Treasury bonds.

3. The Fed is trying to finance the government's profligacy.

In his article, Greg Ip admits that the Federal Reserve is financing U.S. government debt….
By buying Treasury debt, the Fed is in effect financing the federal deficit.

But he says that this is okay because “there’s no shortage of private and foreign investors to buy Treasury bonds.”

Oh really?

According to the Wall Street Journal, in order to repay maturing bonds and finance the massive budget deficit, the U.S. government will have to borrow 4.2 trillion dollars in 2011.
So what do you think would happen if the Federal Reserve sat back and did not buy up a single penny of that debt?

You guessed it – interest rates on U.S. government debt would soar into the stratosphere.
Of course what Greg Ip failed to mention was that just last year Federal Reserve Chairman Ben Bernanke promised Congress that the Fed would not monetize U.S. government debt.

4. The Fed is immune to politics.

Two words, Ron Paul. No matter how hard Paul pushes for a Congressional investigation and audit of the Fed, there appears to be an immunity to any attempt to bring down the curtain that covers this central bank. The United States government has no control of the Federal Reserve. It is run by private bankers. On his death bed, Woodrow Wilson said, ""I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world. No longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men."

5. Bernanke knows what he’s doing.

LOL, he knows what he is doing, but that doesn't mean it's for the good of our Republic. It's good for Bernanke and the central bank who stand to profit from lending money to the federal government.