“When fiat money did not reign, private bankers could not use a central bank’s cheap money to inflate their own ability to lend.”
Hardly true. Banks didn’t need a central bank in order to inflate their ability to lend. The free banking era from the 1820s to the 1860s, the era of wildcat banking, was characterized by excessive lending and depreciating money.
“You will also notice that the “panic” over the situation was resolved by private banking activity, largely by the bank of J.P, Morgan, without any laws needed for that action and without, and before any Federal Reserve legislation.”
JP Morgan was the driving force behind the creation of the Fed, citing his experience during the panic of 1907.
“JP Morgan was the driving force behind the creation of the Fed, citing his experience during the panic of 1907.”
Yes - the merge of the interests of the major banks with the interests of the politicians that want to borrow money, and borrow more and back stop the banks using the taxpayers money.