Quote

There are limits to monetary policy.

When the government runs out of lenders, it can do something that households are forbidden to do: print money.

We have to remember there is not a big printing press in Washington that continually prints money over and over.

The Federal Reserve system obviously doesn't work anymore - they keep lowering the federal discount rate, and all that happens is that the banks are making a fortune, and the old folks' CDs are getting chewed up.

Well, the problem of the federal government is that they print money and go in debt. That's their national policy, Democrats and Republicans it doesn't matter. And this is where I differ.

At some point, the dollar has to give. You can't just keep printing money, and monetizing debt, and buying bonds, without the dollar imploding.

The tenth amendment said the federal government is supposed to only have powers that were explicitly given in the Constitution. I think the federal government's gone way beyond that. The Constitution never said that you could have a Federal Reserve that would have $2.8 trillion in assets. We've gotten out of control.

I am afraid that the ordinary citizen will not like to be told that the banks can and do create and destroy money. And they who control the credit of a nation direct the policy of governments, and hold in the hollow of their hands the destiny of the people.

All the Federal Reserve can do is make loans against collateral.

In a world where wealth is growing, you can get away with printing money. Doubling the debt over the next 20 years is not a problem.