I have become a PressTV junkie.  This slick international news service delivered in perfect English by the government of Iran´s well oiled propaganda machine has the largest collection of eccentrics, cranks, charlatans, snake oil salesmen, masters of duplicity, elements of the lunatic fringe and plain old bald faced liars ever assembled by any news service.  Today they had an international cast, the USA, the UK, France and more condemning the Federal Reserve Bank as the US government´s quiet hand for controlling America in order to steal from the poor to give to the rich.  Funny I just read a Tea Party alarm saying the same thing.  Hmm, could Ahmadinejad be the master of the Tea Party?

Press TV used all the popular “buzz” words in its mindless assault on the Fed -  ”too big to fail, military industrial complex, K Street lobbyists, and bail-out” -  that wavered between the ridiculous and the sublime.

Perhaps a brief comment about the Federal Reserve Bank would be helpful.  To understand the Fed you have to understand an elementary feature of any economy, one man´s debt is another man´s asset.  To create money the Fed buys US Treasury Bonds which become the Fed´s assets to back its liabilities, the dollars it issues.

Mortgage backed securities were nothing more than debts incurred by  home owners.  The mortgages became assets for the lender.   The trouble came when analysts used algorithms based on property values, not mortgages themselves, to devalue the mortgages as much as 90%.  They say this was due to fear of foreclosures by people walking away from their investments.  However, the foreclosure rate rose to a high of 4% in 2009 and is now back at its historic 2%.  Do you destroy an economy because of a 2-4% foreclosure rate?  We did.