Why the Fed Wants Immigration
May 02, 2006, 04:55 PM
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The Federal Reserve has been one of the biggest cheerleaders we have had for open borders(as witnessed by statements by its new chairman).

There are real reasons for this attitude in terms of how the US banking system is set up. The more the US economy grows-and the more the US dollar is used overseas- the more money the fed can create without inflation. This mechanism is explained in Zarlenga`s book The Lost Science of Money.

The ability to create money is an enormous privilege. Productivity per worker —or living standards aren`t directly important to the ability of the Fed utilize this enormous privilege of creating money. What folks like Greenspan and Bernanke care about is seeing that the US economy grows at all costs—even if this means worse living conditions for working Americans. So long as the economy grows, the more the folks that run the Fed can finance the things they want to finance.

Long run, we need a mechanism so that the governance of the Fed is more representative of the American people as a whole-instead of the wealthy interests that dominate the Senate, the Presidency and the financial community.