The Federal Reserve System Repays the Treasury Most of the Interest It Collects From the Treasury

There is widespread ignorance regarding the FED. If you want to understand how the FED works, and what the economic implications are, read these free books on the FED, written by Murray Rothbard, a free market economist who really did understand the FED. Begin here: The Case Against the FED. Then read his textbook on money and banking, The Mystery of Banking. Then read his history of the origins of the FED. See Part 2 of his History of Money and Banking in the U.S.

Finally, read the booklet published by the Federal Reserve Bank of Chicago, Modern Money Mechanics. The booklet shows how the fractional reserve process works. It's straight from the horse's mouth! (It has been out of print for many years. Hooray for the Web!)

OK, class. Gary North presents your reading assignments for this week.