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Glenn Beck Goes ‘Bob Barker’ To Explain How The Federal Reserve Works

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by Frances Martel | 8:36 pm, August 11th, 2010

» 19 comments

The function of the US Federal Reserve is often complicated, secretive, and, thus, difficult to explain. That’s why Glenn Beck left the chalkboard clean today, going high-budget with t-shirts, props, extras and all sorts of (what we hope is) Monopoly money.

Beck, playing the protagonist role as the Federal Reserve in what quickly went from “Bob Barker“-esque game show set to high school stage, asked his fellow actor, “The Treasury,” to print some money for him so that he could buy some debt. Yes, the Fed has the assets to back it up, but no, the Treasury can’t see the “little black book” that proves they do. Now that the Fed has the money, it can’t buy the debt straight from the Treasury, so the Treasury sells it to a third actor, the “Broker” (or, as Beck calls her, the “Money Launderer”), to get through the loophole.

It’s a zany way to do it, and Beck’s detractors will certainly cry “bias” at the interpretation, but does the average American really know what the Federal Reserve does, at all? If anything, this will give many viewers who had no information at all at least a base with which to start understanding why people from all parts of the political spectrum, from Rep. Ron Paul to Rep. Alan Grayson– who co-sponsored a bill on this together– want to audit the Fed (and why others don’t).

We won’t ruin the end of the story for you, but the rest of the segment from Fox News this afternoon below:

Federal Reserve, fox news, Glenn Beck, props, Treasury

MichelleF

and Beck’s detractors will certainly cry “bias” at the interpretation

Frances, since you have proven yourself to be a loyal detractor of Beck’s, why don’t you tell me how this could be considered biased.

Another point worth noting is he played clips of the administration promising they aren’t in the business of buying their own debt and even ridiculed Beck for suggesting it. Another big fat LIE on their part. Not important though, right fran?
lazzzlo

Isn’t Bob Barker a ship?
lazzzlo

“The function of the US Federal Reserve is often complicated, secretive, and, thus, difficult to explain.”

OK…give it a shot.
http://apostrophejones.com Apostrophe jones

You’re the best , Glenn .The bees know this .
Azarkhan

“The big evil for the IMF in Russia in 1998 was the prospect of the central bank funding government debt. The Fed is now even buying mortgage-backed securities,” [Jochem Wermouth, CIO Wermuth Asset Management] noted…

“US credit risk is huge and America has two options, either default or let the currency depreciate substantially against currencies such as the yuan and the rouble,” he explained.
lazzzlo

I believe it would be a standard credit line based on a a money-line that is to be determined.

Debt is borrowed against a reserve amount or the promise to pay back “said debt”.

Or the Federal Reserve is a savings account that has been promised and also looted by economic advisors that are fleeing their public service for a private sector job which better suits their lifestyle.
lazzzlo

We are in debt. We owe our “enemies” money.
Iris

Theres your your cue from your cowardly self serving leader …..BUY GOLDLINE BAIT AND SWITCH COINS ..so your beckerhead can get even richer, but of course you old right wing farts thinks he cares about you…AWWW
http://www.libertarianism.com/ Burnnotice

This has been going on for decades. Beck has just figured this out? O Well.. I guess what worries me most is nobody cares. They just let the Government keep borrowing. Let the next generation take care of the debt. Didn’t Barry call this kicking the can down the road? I’d like to call it spending your children’s wealth and leave them with nothing but a country in ruin…
Bootleghaircut

nine comments and nobody cares.

Why?

Because anybody with half a brain knows that Beck is a friggin idiot.
MichelleF

nine comments and nobody cares.

Why?

I think it’s more like the left has nothing to counter what he’s saying with.
joesal

You know the conservatives are always talking about fiscal responsibility but they don’t practice what they preach as a matter of fact take a look at this …….. Dwight Eisenhower was last Republican President to preside over a balanced budget. He had a balanced budget in 1956 and 1957. Since then, there have been two presidents to preside over balanced budgets, LBJ in 1969 and Clinton in 1998 through 2001. During the last 40 years there have been five budget surpluses, all five were under Democratic Presidents: 1969, 1998, 1999, 2000, and 2001.

Lets see them dispute actual historical fact.
Constantly

hey joe, congress controls the purse strings… idiot
http://none pyrope

…and the left wing whackos who didn’t watch this segment are all remarking as to how it was buffooonery.

You want buffoonery? Watch Alan Grayson.
Iris

Hey old right wing farts.. buy goldline bait and switch coins says your cowardly leader and today he is instructing you to sleep in your cars so you can attened his self promotion rally, How stoopid are you right wing old fart hatemongers, BUY BAIT AND SWITCH GOLD COINS AND SLEEP ON YOUR CAR YOU MORANS< and I do mean morAns, HA, HA
http://sharethisurlaboutglennbeck.com/ GlennBeckReview

I’ve seen many of Beck’s models in the past. They’re always idiotic at best.
Latin2

..and Frances…did you get it?
http://sharethisurlaboutglennbeck.com/ GlennBeckReview

MichelleF says: “nine comments and nobody cares. Why? I think it’s more like the left has nothing to counter what he’s saying with.”

Or rather than shooting from the hip, people are doing research on this. Beck says so many things that are off the wall and otherwise flawed on a given day, it is really hard to bone up and everything he misunderstands.
debi9kids

I personally love that Beck explained it so simply that I was even able to show my teenagers and they can understand.

Now, if only members of congress would watch. Now THAT would be something!