How The Federal Reserve Works, As Explained By Cute Cartoon Characters

The Federal Reserve has been making headlines in the recent months as they work to boost business, lending, and overall economic conditions. Ever wonder how they’re actually doing that? Wonder if there is any corruption involved? (Spoiler alert: there is!)

This handy cartoon is filled with cute cartoon characters and some cold hard facts. From taking down Ben Bernanke to establishing the improper relationship between Goldman Sachs and your tax dollars… it’s pretty thorough.

If you’re a business or economics professor, weigh in down in the comments! I’d love to hear if you agree, disagree, or have another thought about this video. Thanks!

3 Comments

  1. John Boddy

    November 25, 2010 at 10:46 pm

    Quantitative easing, or printing money byt the Fed. is simply a way to devalue the USA dollar, thus making USA exports more globally competitve, which will eventually help to stimulate the USA economy by creating more exports and more domestic manufacturing, and more jobs. That is the real logic behind QE.

    But a very funny video anyway, if misleading.

  2. end the FED!

    December 10, 2010 at 3:17 pm

    This video is not misleading. The more you mess with market forces the more trouble you are going to run into. Keynesian economics makes no sense. It is immoral, and will always end the way the video says it will – with hyper inflation. The universities and schools are brainwashing people to think that this is the proper way to deal with economics when it is mere theory and has failed again and again and again. It is true printing money and lowering the dollar temporarily makes things better but as soon as you get that devalued dollar in your pocket and your wage has not gone up at subway or as a bank teller or whatever your job is. YOU GET THE SHORT END OF THE STICK. and the big financial institutions are the ones who benefit. In the same way that a counterfeiter benefits from his printed money at full value but when it gets into circulation the whole money supply is devalued. ITS A SCAM.

    We have to liquidate the debt. we have to show countries like China that we are going to change our ways and stop increasing our national debt. Even if we turned the ship around and got a balanced budget amendment passed it could be possible that faith would be restored in the dollar. BUT as long as the federal reserve is in charge of whats goign on with the dollar we are headed for DOOM. this is not to scare people but to wake them up. The fed sucks at what it does.
    http://mises.org/media/5607

    ^^^^this is a guy who explains in detail how the fed has failed according to their own objectives!

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