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.”

[Errant]

"Central banks always result in feeding those forces that centralize and expand the nation-state. The Fed’s policies in the 1920s, so well documented by Rothbard, would provoke the Great Depression, which, in the end, wrenched political power from cities and state governments to the swampland in Washington. Today people take seriously the claim that there can be a viable federal solution to every problem thanks to the money printed up by the Fed, while each decade has seen a larger proportion of the population become dependent on its inflation."

[Errant]

fyi,

[Errant]

Where we're at now:

[willywill]

lol, a plant by the fed to throw us off of the real reason.

[faithhopecharity]

governments print currency — Weimar Republic, 100 percent loss of value, economy in ruins

consortium of private banks print currency —steadyish inflation culminating in huge amounts of Quantitative Easing, 90 percent loss of value, economy on skids and sinking

private banks individually, private parties print currency — confusion, inefficiencies in the economy, and some of them go broke, bust too....total loss of value for some at least, see histories of the Panic of 1837, the Mormon banking (or “anti-banking”) attempts (multiple, successive failures....), Bitcoin today?

anyone got a better solution?

[Partisan Gunslinger]

anyone got a better solution?

Tell me again what was wrong with the period between the BUS and 1913. Did we not build the greatest nation on earth?

[InterceptPoint]

Looking at your money expansion charts I have to ask:

1. What keeps inflation from skyrocketing?

2. What keep the price of gold down?

[hosepipe]

https://www.youtube.com/watch?v=mII9NZ8MMVM

[Errant]

anyone got a better solution?

Whereas all agree government should remain out of matters involving religion, I would suggest that likewise currency should fall under the same protection granted by Constitution amendment.

If that were the case, IMO, PMs and perhaps today Cryptocurrencies, would be the major mediums of exchange. I'm guessing goods and services would be priced in weights/measures of PMs instead of some arbitrary value assigned by government central banks protected through coercion and manipulation.

[Errant]

Central bank control, for now.

[BfloGuy]

What keeps inflation from skyrocketing?

Very, very few people are spending all that new money the Fed has made available. So, prices are increasing on a relatively small number of commodities.

If business investment were to pick up [unlikely under this administration], the competition for resources would begin the price spiral.

[InterceptPoint]

Very, very few people are spending all that new money the Fed has made available. So, prices are increasing on a relatively small number of commodities.

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.

[Errant]

Thanks for the link - excellent!

[hosepipe]

What about the Big Guy in Washington D.C. He spends around a $Trillion or so every year that he doesn’t have.

---

ALL federal reserve money is money they dont have...
It’s FIAT money.. duuugh

[Errant]

Little of the QE printing makes it to Main Street. What inflation is created, is hidden like the real unemployment rate.

Source: http://www.shadowstats.com/alternate_data/inflation-charts

Indirectly, big banks gambling with this "free money" caused turmoil in the price of commodities around the world. It's one of the reasons for unrest in the Middle East.

One day in the future, the central banks will lose control. I happen to agree with Mark Faber that war and inflationary depression will be the likely result.

Interview With Marc Faber: It Is Not A Matter Of If With Hyperinflation, But When

[hans56]

The few who understand the system will either be so interested in its profits or be so dependent upon its favors that there will be no opposition from that class, while on the other hand, the great body of people, mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests.
The Rothschild Brothers of London writing to associates in New York, June 25, 1863.

Says all I need to know

[Errant]

Yep. Sadly, those who depend upon the current system the most, like the 50 million now relying on government for subsistence, will have no other choice but to riot, bringing drastic measures to retain order by the very same government that led them into dependency.

[Revel]

The Fed’s charter says that they will maintain stable prices. Stable means 0% inflation. How is that going.

[hans56]

The real question is who owns it?

A secret more protected than Obama’s birth certificate

[Errant]

Stable means 0% inflation. How is that going.

Just paid $5.28 lb for stew meat. Wanted a roast to cut up but that was over $6 lb! I have never in my life paid more than $3.69 lb for beef stew meat. I know there have been lots of problems with beef production recently, however all groceries are getting outrageous. Folks on fixed incomes are screwed and COL adjustments haven't reflected actual the cost of living increases for at least the last decade.

So, I'd say we're being lied to on inflation as well...