Bernanke: Fed Wants to End Banks ‘Minimum Reserve Requirements’

03-18-2010 • RawStory.com

What Bernanke is flatly stating is the need for that fraction, representing the actual wealth by which the bank's capital multiplies, could soon be eliminated for the U.S. Federal Reserve, making free-floating, infinitely self-replicating capital a pervasive reality. Only a few other nations have endowed their fiat currency with such buoyancy, their numbers including Mexico, Canada, Australia and the United Kingdom. "The truth is that the financial system that we have created makes inflation inevitable," opined Business Insider writer Michael Snyder. "The U.S. dollar has lost more than 95 percent of the value that it had when the Federal Reserve was created. During this decade the value of the dollar will decline a whole lot more. "That doesn't sound like a very good investment. "But that is what happens when you give bankers power to make money up out of thin air. "And things are only going to get worse." In the op-ed, Snyder points to one member of Congress, Rep. Ron Paul (R-TX), as someone who "realizes" the alleged grievous failings of the Fed, quoting Paul from a recent hearing of the House Financial Services Committee hearing. "The Federal Reserve in collaboration with the giant banks has created the greatest financial crisis the world has ever seen. The foolish notion that unlimited amounts of money and credit created out of thin air can provide sustainable economic growth has delivered this crisis to us. Instead of economic growth and stable prices, (The Fe