100 Years Later, The Federal Reserve Has Failed At Everything It’s Tried
On Dec. 23, 1913, President Woodrow Wilson signed the Owen Glass Act, creating the Federal Reserve. As we note its centennial, what has the Fed accomplished during the last 100 years? The stated original purposes were to protect the soundness of the dollar and banks and also o lessen the jarring ups and downs of the business cycle. Oops.
Under the Fed’s supervision, boom and bust cycles have continued. Three of them have been severe: the Great Depression, the stagflationary period of 1974-82, and the current “Great Recession.” Bank failures have occurred in alarmingly high numbers. Depending on what measurements are used, the dollar has lost between 95 and 98 percent of its purchasing power. (Amazingly, the Fed’s official position today is that inflation is not high enough, so the erosion of the dollar continues as a matter of policy.)
Having failed to achieve its original goals, the Fed also has had a miserable record in accomplishing later goals. The 1970 amendments to the Federal Reserve Act stipulated that the Fed should “promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.” In baseball parlance, the Fed has been “0-for-three.”
The bottom line is that somebody has to have the power to create money… There are only three choices for the job: a private banking cartel, local communities acting separately, or the collective body of the people acting through their representative government. Today we are operating with option #1, a private banking cartel, and it has brought the system to the brink of collapse. The privately-controlled Federal Reserve, which was chartered specifically to “maintain a stable currency,” has allowed the money supply to balloon out of control. The Fed manipulates the money supply and regulates its value behind closed doors, in blatant violation of the Constitution and the antitrust laws. Yet it not only can’t be held to account; it doesn’t even have to explain its rationale or reveal what is going on. By Mark Hendrickson,
… The fiat currency of the national community has the full force of the nation behind it. And even if the politicians in charge of managing it turn out to be no less corrupt than private bankers, the money created by the government will be debt-free. Shifting the power to create money to Congress can relieve future generations of the burden of perpetual interest payments to an elite class of financial oligarchs who have advanced nothing of their own to earn it. Web of Debt by Ellen Hodgson Brown, 2007
A cabal of English aristocrats and bankers [created] the Bank of England in 1694. King William, in need of money to fight a certain war, money which he couldn’t raise by taxing or borrowing, granted a charter to a favored group of intriguers to form a bank which would be given a monopoly on issuing English bank notes, i.e., English paper money, which would be created out of nothing and credited to the government in return for a government IOU, the only “backing” that would be required. The government would pay interest on this “loan,” making it look legitimate to the public, but the bank’s even larger payback was that it was empowered to make additional commercial loans, at interest, using the same government IOU’s as “backing,” just as though the IOU’s were hard, metallic gold. The banks, by receiving interest on money they could create and lend out at will, were thereby going to get rich, the king was going to be able to raise any amount of “money” he wanted, and the public, remaining ignorant of what was going on, was going to pay for it all by having their savings devalued by the expansion of the currency. (Our Federal Reserve does essentially the same thing, with added refinements which greatly increase its leverage over commercial credit.) The Creature from Jekyll Island by G. Edward Griffin 1994
The United States government has been taken over by a financial terrorism network. They have bought off leaders of both the Republican and Democratic parties, and have established a dominant role in all three branches of government and throughout the mainstream media. They have complete control of the economy, stock market, US Treasury, Federal Reserve, World Bank, IMF and global banking system. Free market capitalism has collapsed; it’s now a rigged global market. This is an organized criminal operation … determined to destroy our very way of life The Global Banking Cartel Has One Card Left to Play from the book Revolution or World War III by David Degraw