The Federal Reserve Act was railroaded through congress on Dec. 22, 1913 two days before Christmas when most congressmen, who would have opposed entrusting the US economy to these bankers, were away for the Christmas season. President Woodrow Wilson signed this bill into law, but later deeply regretted doing so.
The Federal Reserve Act of Dec. 23, 1913 approved + signed 2 days before Christmas when the opposing congressmen and senators were absent celebrating Christmas was and is a betrayal of the American Revolution which was fought to create an interest free government created currency for the people of the people and by the people.
Well, that lousy traitor Reagan certainly made no attempt to make it answer to anyone.
JFK was murdered after he challenged the power of the Fed, by issuing government created money not under it's control nor subject to it's interest. Reagen attempted to get his men appointed to the Federal Reserve banks, but the Fed simply refused. That was the last attempt by a US president to retake the US economy.
Post by DAS (formerly BushAdmirer) on Jun 9, 2016 14:36:59 GMT
Implementation of free market capitalism and transparent market's are fundamental building blocks of U.S. economic progress.
Proper management of credit and debt are also fundamental elements of economic progress. A stable banking system is essential.
The Federal Reserve was created in response to financial panics in the early 1900's that showed a need for central control of monetary policy.
Over time the role of the Fed and other central banks has expanded into a dual mandate of employment maximization and inflation control.
Nobody would argue that the influence of central bank intervention has grown exponentially since 2008 as central banks in the United States, Europe, Japan and China attempt to stimulate economic growth and avoid financial panics in various parts of the world.
These unregulated central banks have dramatically expanded their balance sheets and now act as hedge funds with an objective to maintain confidence in a fragile banking system that is over-leveraged in derivative risk. Because interest rates are already at lows the central banks must find new forms of stimulus to combat crisis situations. In times of desperation you can be sure that central banks are willing to purchase any asset necessary. The central banks in Japan, Europe and China were desperate to prop up oil prices in February:
With so many national economies greatly over extended with debt, and interest rates already very low, these central banks are called upon to be finance magicians at times.
Post by DAS (formerly BushAdmirer) on Jun 9, 2016 21:21:43 GMT
A couple more thoughts on the Federal Reserve and other important central banks.
No matter how hard central banks try to prop up the markets, nobody can deny there is significant economic stress in the United States, Europe, China and Japan. With global economies stuck in 'no growth' mode the probability of political outcomes is more uncertain.
This uncertainty extends further than the traditional conservative vs. liberal debate. The debate has now escalated to establishment vs. anti-establishment with much higher stakes. Talk of leaving the European Union, anti-trade policies, building walls, etc... carries massive risk. Does establishment politics still hold a global advantage among the electorate? Could the balance shift if any sort of economic/terrorist/health shock were to tip the scales?
We're seeing central bank activism as the U.S., Europe, China and Japan attempt to maintain stability in an over-leveraged global banking system. Their latest experiment is to prop oil and stocks in hopes of stimulating an economic turnaround. With monetary tools exhausted at zero and negative interest rates, central bankers are forced into unconventional methods and uncharted territory.