Why Bankers Created the Fed 100 Years Ago

The Market Oracle, UK ^ | 23 December, 2013 | Christopher_Westley

[Errant]

The Democratic Party gained prominence in the first half of the nineteenth century as being the party that opposed the Second Bank of the United States. In the process, it tapped into an anti-state sentiment that proved so strong that we wouldn't see another like it until the next century.

Its adversaries were Whig politicians who defended the bank and its ability to grow the government and their own personal fortunes at the same time. They were, in fact, quite open about these arrangements. It was considered standard-operating procedure for Whig representatives to receive monetary compensation for their support of the Bank when leaving Congress. The Whig Daniel Webster even expected annual payments while in Congress. Once he complained to the Bank of the United States President Nicholas Biddle, “I believe my retainer has not been renewed or refreshed as usual. If it be wished that my relation to the Bank should be continued, it may be well to send me my usual retainer.”

[Toddsterpatriot]

The currency act was the final that was signed the DAY AFTER THE FEDERAL RESERVE ACT. It rectified the differences between the Congressional bill and the Senate bill determining US currency

Really? Link?

If you feel the need to get personal to make your point I understand since your position is pretty weak.

I don't take your confusion personally.

[Toddsterpatriot]

Who owes China gold? Why won't China get it?

Why would that make "it" end? What is "it"?

[BfloGuy]

What about the Big Guy in Washington D.C. He spends around a $Trillion or so every year that he doesn't have. Surely it is the Fed who feeds that machine. That money is being spent.

Oh, yes. I certainly did not intend to minimize that.

But high inflation, or hyper-inflation if you will, has psychological as well as monetary causes. So far, Americans have had enough confidence in the dollar that they are not dumping it for tangible goods thus driving up all prices.

It's impossible to predict when, if, or why that might happen. But it could. The conditions are ripe.

But it might not.

[x]

Don't forget the possible nutcase warning:

Christopher Westley is an adjunct scholar at the Ludwig von Mises Institute.

[Errant]

Sadly, no one pays me to correct your errors.

You haven't "corrected anything". You simply list points you disagree with, call them incorrect and leave it at that. Let's take just one: Post #64, "Might be, what's 2% of 17T?"

These huge sums of credit get traded back and forth many many times between the banks and foreign central banks. Hell, one central bank borrows from another central bank to pay another bank daily. Each time this occurs, it incurs interests. The 17T I used is simply some number (i.e., the US debt) for a reference. I have know idea how big it is, but suspect the major banks and central banks exposure is 10s of times higher than the use debt. The size of that "exposure" also means they're raking in huge interest payments, and the taxpayer is underwriting they risk.

Let's take another: Post #48, "the Fed is no more Federal than Federal Express..."

The Fed consists not only of the members on the board, who receive a government salary, but also consists of the totally private member banks and their private cartel of owners who remain hidden from public scrutiny - why?

“Some people think that the Federal Reserve Banks are United States Government institutions. They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lenders.” – The Honorable Louis McFadden, Chairman of the House Banking and Currency Committee in the 1930s

...

[Errant]

Why would that make "it" end? What is "it"?

What are you talking about?

[Errant]

What about the certifiable “nut case” who is going to pick our new Fed chairman?

[Errant]

An ounce of silver buys 60% less than it did a bit over 2 years ago. Gold, about 37% less over the same time-frame.

I prefer the market setting the values of any commodity, good, or service over some central committee in some far off city.

Gold prices like just about everything else, are almost certainly being manipulated by governments and central banks.

http://www.hardassetsinvestor.com/interviews/1604-bill-murphy-manipulation-of-the-gold-market.html

Even with the manipulation, market swings, and etc. Gold and silver are far better mediums of exchange than fiat currencies. The only thing better might one day prove to be cryptocurrency.

An ounce of silver buys 60% less than it did a bit over 2 years ago. Gold, about 37% less over the same time-frame.

Big deal, how much has the price of gasoline swung since O has been in office? 100%? In the long run, PMs have maintained their purchasing power far better than any fiat in existence, including the dollar.

In the above '38 COL price list, one dollar (worth 1 ounce of silver - which btw, I think should be in "weights" instead of some arbitrary value) purchases TWO gallons of milk. Today, it takes about $5 to buy 1 gallon of "milk". That's 1/10 of the dollar's milk (btw, cheap mass produced watered down milk) purchasing ability. A silver dollar today buys four gallons of today's cheap milk.

The above tells me all I need to know to figure where the fiat dollar is headed. A couple of 50% price swings in PMs doesn't begin to compare with how much the dollar has depreciated. But then using argument to make your point was disingenuous at best and pretty much how you been pushing you vaulted fiat system.

[Toddsterpatriot]

Why would that make "it" end? What is "it"?

What are you talking about?

The silly video you linked. Forgot it already?

Rob Kirby-When China Doesn't Get Their Gold-That's When This Ends

LOL!

[Toddsterpatriot]

You simply list points you disagree with

Yes, I diagreed with your errors.

call them incorrect and leave it at that.

You couldn't understand my proof of your errors?

Let's take just one: Post #64, "Might be, what's 2% of 17T?"

Excellent example of your errors. Member banks own about $27 billion in "Federal Reserve Stock". They earned about $1.6 billion in 2012 on that stock.

The fact that you think this gives them some chunk of interest on the $17 trillion Federal debt is so silly, it makes me think you're a liberal.

These huge sums of credit get traded back and forth many many times between the banks and foreign central banks.

I'd ask you for a link for this silly claim, but it really isn't worth it.

Hell, one central bank borrows from another central bank to pay another bank daily.

Why would the Fed, for instance, need to borrow from another central bank, to pay anyone? Spell it out.

The 17T I used is simply some number (i.e., the US debt) for a reference.

Yes, it is a reference, of your cluelessness on these issues.

The size of that "exposure" also means they're raking in huge interest payments, and the taxpayer is underwriting they risk.

Exposure? Please, you should quit now. You're just making stuff up, digging your hole deeper.

The Fed consists not only of the members on the board, who receive a government salary, but also consists of the totally private member banks

Yes, member banks like Citibank, Bank of America, as well as smaller state banks.

and their private cartel of owners who remain hidden from public scrutiny - why?

Citibank, Bank of America, as well as smaller state banks have shareholders. I wouldn't call them a cartel. You can find out the largest of these shareholders.

The Honorable Louis McFadden

LOL! He was nuttier than 10 pounds of squirrel shit.

[Toddsterpatriot]

Today, it takes about $5 to buy 1 gallon of "milk".

Where do you buy milk? I pay $2.50 a gallon.

A silver dollar today buys four gallons of today's cheap milk.

Eight gallons today, about twenty gallons 2 years ago.

Gold and silver are far better mediums of exchange than fiat currencies.

Not if you like milk.

[Errant]

Why would the Fed, for instance, need to borrow from another central bank, to pay anyone?

So the Fed doesn't need to borrow from another central bank? So, does the fed ever make loans to another central bank?

[Errant]

The silly video you linked. Forgot it already?

No, you're so flighty and jumpy, it's sometimes hard to follow your train of thought.

Watch the video and then you won't have to be asking what "it" is...

[Errant]

I pay $2.50 a gallon.

Hmmmmmm, you sure that stuff's okay to be puttin' in your body?

Just sayin'... :)

[Errant]

Btw, when is the last time you bought a gallon of milk? The cheapest milk here is $4.

[Errant]

Yes, member banks like Citibank, Bank of America, as well as smaller state banks.

How 'bout a list of the member banks? Can you link to one, or do you have one?

[Toddsterpatriot]

So the Fed doesn't need to borrow from another central bank?

Why would they need to borrow? They have that nifty printing press.

So, does the fed ever make loans to another central bank?

They've been known to open swap lines with other central banks. Buncha idiots were whining about those about 5 years ago.

[Errant]

Buncha idiots were whining about those about 5 years ago.

You talking about the 16T the Fed loaned to foreign CBs and financial institutions here?

[Toddsterpatriot]

Flighty? Coming from the guy who can’t remember his own link from 10 posts earlier? LOL!

[Toddsterpatriot]

I bought milk about 3 days ago. $2.50, used fiat money.