This Segment #3 of the Federal Reserve Series features B. Scott Minerd, Chief Investment Officer of Guggenheim Partners, LLC. G. who also is a member of the Market Advisory Board of the New York Federal Reserve Bank. Author G. Edward Griffin contends that the banks benefit from worthless fiat money because their profits are based on charging interest. He states that when money was backed by gold or silver, banks couldn’t loan more than they had, but with a monetary system based on printing fiat money, their ability to make a profit isn’t limited. Griffin states that people don’t realize that Congress gave up the power to issue its own money, essentially handing it back over to the banks (the cartel), when the Federal Reserve Act was passed. He points out that the words Treasury Certificate are no longer on paper bills. They have been replaced with Federal Reserve Note, United States of America, rather than “redeemable in specific ounces of gold or silver.” Minerd observes that the history of hard currency is checkered, and the history of paper currency is abysmal. He states that there’s never been a time when the use of paper currency hasn’t led to high levels of inflation, and ultimately have either been reversed or gone off into hyper-inflation. He describes Quantitative Easing (QE), a program designed to provide stimulus to the economy once interest rates reach what is called “zero-bound.” Minerd states that QE is the process by which the Federal Reserve directly intervenes in the market, purchasing securities in an attempt to push interest rates down, essentially creating more money. He expresses concern about this money that is not borrowed or printed but created through electronic bits, questioning what will happen when the time comes to reverse the process, and calling some sort of monetary error likely.