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To: Fai Mao

Absolutely agree! I’ve been learning more and more as to why our early founding fathers DID NOT want a “Central Banking” cartel involved in the “coinage” of our currency. Unfortunately everything they feared has come to light as the creation of a “Central Bank” (i.e. the privately held Federal Reserve) has made the US a debtor slave nation - allowing for the growth of Government to become unstoppable!!! Pray America is Waking Up!!


4 posted on 11/24/2015 2:26:01 PM PST by freddy005
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To: freddy005
Dunno what "Founding Fathers" you read, but Hamilton initiated the idea of the Bank of the United States on George Washington's instructions; James Madison was fully in favor of it; John Marshall as well, ruling it Constitutional; John Adams liked it. Only Jefferson disliked it, but instructed his supporters to vote for it on the grounds the capital was moved to DC. Franklin favored a similar, earlier bank.

The difference between the BUS, which was pretty good at providing a reliable circulating medium and in generating economic growth, and the Fed, is that the BUS was not a monopoly when it came to printing money. ANY bank could get a charter and print money prior to 1863, and it worked very, very well. We had three panics from 1793-1861. Only one in any way was caused by "the economy" or "capitalism," the Panic of 1819. But the Panic of 1837 was simply a drying up of Mexican silver used by all the banks as a reserve; and the Panic of 1857 was caused (as I proved in a 1991 article with Charles Calomiris) by the Dred Scott decision crashing railroad bonds. So I think looking back the Founders in fact had it right: a central bank that had to compete with every other bank was not a threat to anyone.

17 posted on 11/24/2015 4:11:43 PM PST by LS ("Castles Made of Sand, Fall in the Sea . . . Eventually" (Hendrix))
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