Comment Re:Government is a tool (Score 1) 243
Wrong.
Don't I actually have to be wrong first before this term applies? I've heard the ZOMG Federal Reserve argument before. The Fed is an institution created and backed by the power of the US government. The US government runs the top level of the Fed and happens to control in other ways what policies the Fed can implement (for example, via pressure on bank members).
The whole scheme of money creation was created and endorsed by the US government who backs it up with a variety of means. As an example of that last statement, I suggest you actually look at a US bill. It has on it "this note is legal tender for all debts, public and private". Being required to pay your US taxes, both federal and state, with US dollars is yet another way the US government backs its currency. You can also pay debts and public charges with currency.
In modern, neo-Liberal economic societies Government borrows money from private, central banks. This money is called into creation as debt. The creation of the money is an act of the bank - an accounting phantom - entering new assets as black ink on their ledgers.
Like any other transaction, it is a mutual act of two or more parties. This is an act of the bank and an act of the government.