“And the FED is the first among all, because you can’t run a Progressive-state without a fiat currency and politicized interest rates.”
Good try. Too bad for that fiat currency theory that we operated on the gold standard until 1933 and on an international gold exchange standard until 1971.
We did have fiat money though. The entire US Note currency issue that began as Lincoln’s Greenbacks and carried through until 1963. Of course they preceded the Fed by nearly 50 years. And there is what was known as ‘bank money’, credit created by banks using fractional reserves but that sort of fiat money has existed as long as banks have been around.
Interest rates were limited by the gold standard until the end of Breton Woods in 1971. It became much easier to politicize them afterwards. It was Nixon and other politicians who made that change nearly 60 years after the creation of the Fed so it has nothing at all to do with why the Fed was organized.
“What’s your point exactly? “
It was in my previous post. The Fed legislation codified what JP Morgan and clearinghouse associations already were doing particularly during panics.
You are wrong on two points
Bretton Woods established a gold-exchange standard, not a gold standard. They are quite different. In the former, exchanges rates were fixed to the dollar, and only the dollar was fixed to gold. This gold-exchange standard relied on the probity and discipline of US politicians to maintain the exchange standard. Of course, that is why it failed after 25 years. Now the Fed can print as much as it needs to keep the US Government’s social-engineering schemes running
Your second error is regarding the currency after the Civil War. Unbacked Civil War greenbacks were removed from circulation in the 1870’s. National Bank Notes, which you seem to refer to, were issued by “national banks” and were backed by US Treasury debt - which itself specified payment in GOLD.
Moreover, your presumption that the FED is simply doing what JP Morgan did is absolutely false also. A FED that offers credit during bank runs is one thing - a FED that as a matter of daily operations that monetizes massive US Government debt, or over the course of years manipulates the yield curve (operation twist) or operates QE for 5+ years is something COMPLETELY different.