Originally Posted by Andrew Jackson

"The bold effort the present bank had made to control the government... are but premonitions of the fate that await the American people should they be deluded into a perpetuation of this institution or the establishment of another like it." - Andrew Jackson (1767-1845) 7th US President

Originally Posted by Some guy named Edgar

What happens if the FR refuses to make a loan to the government? What happens as all the currency currently held by individuals is slowly used to pay taxes (which then uses it to pay the interest on the government loan), but no new currency is entering the system via more government loans from the FR? If you have to pay back $500 extra on the $1000 you borrowed but you only have an amount in circulation equal to what you have borrowed in the past, what does that do to the value of that existing currency still in circulation? Or worse, what happens to the value of that currency if instead of denying the loan, the FR grants the loan? The answer to the last question is the reason a car cost $1000 a few decades ago, but cost $20000 now.