Money is an Illusion, so why Pretend?
Bernanke is practically fessing up to the biggest fraud of all time: the fraud of modern money. These colorful pieces of paper aren’t backed by any specific goods or services, and their daily value fluctuates as the financial gatekeepers arbitrarily decide to inflate and contract the available supplies of cash. There really is no limit to the amount of money we can create in a virtually instant period of time, so why keep pretending that there could ever possibly be a shortage in the banking system?
So, this is the tortured logic that leads us to Bernanke’s conclusion: eliminate banking reserves outright.
The Federal Reserve believes it is possible that, ultimately, its operating framework will allow the elimination of minimum reserve requirements, which impose costs and distortions on the banking system.
Since the banks can head straight to the Federal Reserve for cheap money any time they need it, and since the system is blatantly rigged to provide them profits in the long run, there really is no need for a financial panic! We can just print more money! Heck, even if we ran out of paper and ink we could still transfer digital credits into the bank’s account and that would be just as valuable as those greenbacks you worked so hard for.
So the next time you’re sitting at work and staring at the clock, as yourself why any of us should have to keep bank reserves to pay off our bills and debts – its all just imaginary money, right?