I typed my understanding but ran out of battery right as I was submitting (a sign?). So, see the other response as it is more learned than mine. A side note, though...seems to me that this Federal Reserve has a great deal of unelected and uncontrolled/unchecked/unbalanced authority if they can create and restrict money by fiat and bank control.  Has any entity ever brought suit against the Fed or is it always the other way around?