Stephen Colbert on How the Fed "Sausage Gets Made"

Stephen Colbert, of The Colbert Report, explains the inner workings of the Federal Reserve, and why there’s no reason Americans need “to see how that sausage gets made.” The video follows and a few choice quotes are transcribed below.

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* “Now some conspiracy theorists out there have criticized the Fed as a secretive cabal that only benefits the well connected, when in fact the Fed is merely an extra-constitutional star chamber that controls our monetary policy with no oversight.”

* “The Fed needs that autonomy because they have an important job. They set the prime interest rate for all loans. Raising rates encourages savings while lowering them encourages spending on big ticket items like houses and cars… unless you saved money by buying a house, in which case you now live in your car.”

* “The fact is we don’t need to know what they’re doing as long as we think they know what they’re doing. That makes the economy stronger which means whatever they did was right, which means that they know what they’re doing.”

* “Senator… Chris Dodd, who recently introduced a bill that would consolidate oversight of the banks, now shared between the Fed and three other regulators, into a single new agency. That agency? Goldman Sachs.”

The video came to our attention via a Zero Hedge post covering Comedy Central as it takes on the Federal Reserve.