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[Clansgian AT wmconnect.com]

> >The Fed can print money, but what the government spends can not be 
> authorized by any other inity.  It is specified in the Constitution

In times past (yet within the lifetime of most of us) governments could only 
produce money if there were some real good to back it up:  resources, grain, 
and most commonly precious metals.  The money was just a sort of token to 
represent the real good,

Today money is created to represent debt.  In our present system the creation 
of a new dollar means someone has agreed to borrow it and pay it back later.  
This is why it is the Fed that must create money and not Congress,  Congress 
can't create debt, it must persuade others to create the debt for them.  
Hence, the Fed.

By the bye, the money comes into existence as soon as someone agrees to 
borrow it.  It evaporates when they default.      </HTML>