For some of you this is going to be heartbreaking. Faux, MTV-created celebrities Heidi Morgan and Spencer Pratt have a poor understanding of how the Federal Reserve system works. That’s ok. They’e like most people, and we even get confused.
Eddy at CrossingWallStreet discovered that the pair went on the Alex Jones show (he of 9/11 truther fame).
If you jump to the eight minute mark you can hear Spencer tell us that the Federal Reserve is a private company just like Federal Express.
This seems to be a popular misconception about the Federal Reserve. Like many things said about the Fed, it’s not true—the Fed is not a private bank. The best way to describe it would be a hybrid quasi public system. Not surprisingly, the end result was part of a political compromise. If my business were run that way, I wouldn’t consider it private.
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