In this episode, the Gwartney team gives a rundown of what the Federal Reserve is and how it operates. They describe our current system, fractional reserve banking, and describe pitfalls that have arisen due to it. We discuss how inflation acts as a required tax pressed upon and created by the government. We hope you enjoy and learn something from this podcast!
Federal Reserve 101 / 2:00
Why Banks Want Bonds / 7:15
Mortgage-Backed Securities / 10:30
Old System is Dead / 22:05
Why Open Market Purchases Matter / 30:45
Four Tools / 38:30