The Federal Reserve System faces a dilemma of its own creation: the doubling of the monetary base. You can see it here. The only thing that is keeping this from creating mass inflation is the decision of commercial bankers to deposit the bulk of this increase with the Federal Reserve. The banks are not lending out this money. Neither is the FED. This money does not legally belong to the FED. President Obama has said that banks that receive money from the Federal government as part of the bailout operation are going to be required to lend money. As to … Continue reading The Fed’s Chickens Are Coming Home to Roost