Just added this to my 7 Deadly Innocent Frauds draft where I had described the process of government spending in a similar manner:
(PELLEY) Is that tax money that the Fed is spending?
(BERNANKE) It’s not tax money. the banks have– accounts with the Fed,
much the same way that you have an account in a commercial bank. So,
to lend to a bank, we simply use the computer to mark up the size of
the account that they have with the Fed.
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