It makes perfect sense to me to have a subsidiary of all defense agencies, that are ultimately responsible for protecting the United States, to backstop and be the definitive underwriter of US debt and the issuer of more. At the end of the day, US debt is one of the best businesses to be in if it is in the hands of those that will move the economy forward with it. The Federal Reserve System IS the most highly lucrative and leveraged system that can benefit any organization's future (especially the ones that control it [key point!]), and the future of the United States as a whole (another key point and the most important one). If you want to compare the existing (largely failed) Federal Reserve System to the one being suggested, don't bother throwing into the mix conflicting and confusing existing Federal Reserve practices and spin, that are probably at the heart of many of the problems the US faces. I don't have a problem with Bernanke himself or with any board members/directors etc (not yet, anyway). The Federal Reserve System is inherently dubious and it's not owned and operated by those that know how to best protect US interests. I don't think we have seen the worst yet; not talking about the current economic crisis. I'm thinking decades ahead and what could go wrong. Under the current Federal Reserve System, where is all the debt going to? Who are the real (perhaps foreign) owners of US (perpetual) debt? What's done is done, and let's not waste more time worrying about something they don't want to disclose (why don't they want to disclose such secretive information again?!). Here's just one thing that should happen: Congress should allow for a (piece by piece, if need be) controlling 51% stake of the Federal Reserve System to be sold to a subsidiary (for technical, legal, conflict of interest etc reasons) of (all) participating United States defense agencies; criticize them all you like but pound for pound, you're not going to find more responsible/protective etc organizations. Yes, the most expensive purchase in history, but with a small percentage down-payment and for this newly formed organization to pay down only interest over time. The (current) Fed and the overseeing commercial banks can do the potential new owners a favor with low long term yields too, thanks to Operation Twist! And the participating banks will have all the necessary business too to help them along; no need to worry about being too big to fail (again!) because those commercial banks aren't going out of business! Or if Congress down the track feels that it is in the best interests of the United States, it could by-pass the accounting technicalities and force the current owners to sell 51% of the Federal Reserve System to a subsidiary of US defense agencies. I'd go for this option. An Act of Congress... The printing and supply of money should be in the control of those whose interest in the longevity of the US is without equal, and for this organization to use the power of leverage to further strengthen and enhance the sovereignty of the US, in the best ways it sees fit. Leverage and power at this level (the highest in the world, by far) should not be exclusively in the hands of obscure foreign and domestic interests. The long term consequences of obscure 'foreign' interests in the Federal Reserve System, hasn't been realized. What are the chances that such dynamics are going to further weaken the US? Or the US could just let the current Federal Reserve System, and its perhaps foreign interests, buy-up and control more US debt, while the most sacred of all guarantors - the US's defense agencies - have to wait in line for financial support! A subsidiary of US defense agencies with a controlling stake in the Federal Reserve System could put the highest level of leverage to much better use for itself, the people/governments it represents and the United States in general, moving forward.