This Video Explains The Federal Reserve In Less Than 3 Minutes [Watch]

Everything you didn't know about the Federal Reserve explained in just a few minutes...

Credit: ThePulse2016.com

Like doing taxes and managing a business, there’s a lot many of us didn’t learn in school. Fortunately, School House Shock is prepared to instruct the masses on what exactly the Federal Reserve is.

In case you missed Government class, the Federal Reserve is the central bank of the U.S. and it is credited with helping the nation maintain high employment rates and stable prices for consumers. The main tool utilized by the Federal Reserve to influence the economy is interest rates – the price everyone pays to borrow money. Learn more here.

As is mentioned in the video below, the central bank is able to assert its influence by buying and selling U.S. Treasury bonds (this is how the U.S. borrows cash to fund government operations). When the Fed buys Treasuries from individual banks, new, shiny money is created electronically to pay for these bonds. Such is how the Fed increases the supply of money in the American economy.

However, there are numerous ‘cons’ to the process. This is what the video below seeks to examine in less than three minutes. A summary, found in the description section on YouTube, reads: 

Money – whether its a tangible piece of paper or a number on a screen – is intrinsically worthless, yet it fuels the modern world. In America, the ultimate control of money rests with the bankers of the Federal Reserve System. Because of this it is detrimental that we as citizens understand how this shadowy – private – organization works and how it’s ultimate goal is to forever enslave us in a descending pit of debt that we will never crawl out of.”

Learn more by watching the video below:

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