Financial Accounting Blog

Wednesday, March 10, 2004

The economist reports the economic recovery is nothing more than a manipulation of the money supply by the Federal Reserve and questions not the way in which the Fed creates money (by fiat), but is concerned on the vast expansion of the money supply in the last few years. With no external auditors or accounting regulations to control the Federal Reserve, they have increased the money supply so rapidly that the interest rates have plummeted.
My personal concern is not the quick expansion of the money supply, but that very few seem concerned over the lack of any fiscal or considerate restraint.