The Federal Reserve System Explained.My Video...and a great Q and A with a student...thoughts???

Q.Professor, thank you for taking the time to provide us with a video about the Federal Reserve System.  It gave me a better insight on the system and the functions of the 12 Federal Reserve banks.  You mentioned that their job is to keep inflation under control and keep the economy going so that it does not slow down too much.  The question that always comes to my mind when I think about the Federal Reserve is the mounting deficit that we, as a country, has piled on.  How do you suppose that we will ever pay that back and how much time would it take to do so?  Do you have any idea what kind of interest we are paying on it?  If the rates are a function of credit and time, do you suppose our credit will be lowered because of the amount we owe?  I find the balancing act of keeping the economy monetarily healthy an interesting subject, thank you for posting such a video.

 

A. An important concept to gather is that we are floating capital that essentially comes from an unending account, that is the Fed can write blank checks. The key is to continue to grow the economy, give our citizens improved skills and offer them a better quality of life without creating an inflationary effect. GDP should be measured in terms of dollars and happiness.