The Federal Reserve: Instigating Crisis Since 1913
Meet the system responsible for the major financial blunders of the last century.
The Federal Reserve Act of 1913 created the Federal Reserve Bank with the following mandate:
An Act to provide for the establishment of Federal reserve banks, to furnish an elastic currency, to afford means of rediscounting commercial paper, to establish a more effective supervision of banking in the United States, and for other purposes.
The original mandate was clearly limited. The idea was that a Central Bank would be able to keep the periodic panics -- like the Panic of 1907 -- from ever happening again. It appears that four innocuous words opened up Pandora's Box and unleashed evils upon all mankind: "and for other purposes."
The bankers who control the Federal Reserve along with their politician protectors have dramatically expanded the scope, authority, and influence of the Federal Reserve with each scientifically created crisis that's occurred in the last 96 years. They're attempting to grab more power as we speak.
Since 1913, the Federal Reserve has amassed more and more authority and now has vast responsibility and control over our lives. The Federal Reserve website lists the following functions:
- Conducting the nation's monetary policy by influencing the monetary and credit conditions in the economy in pursuit of maximum employment, stable prices, and moderate long-term interest rates.
- Supervising and regulating banking institutions to ensure the safety and soundness of the nation's banking and financial system and to protect the credit rights of consumers.
- Maintaining the stability of the financial system and containing systemic risk that may arise in financial markets.
- Providing financial services to depository institutions, the US government, and foreign official institutions, including playing a major role in operating the nation's payments system.
By any reasonable measure, the Federal Reserve has failed miserably in all their responsibilities. When organizations fail in a capitalist system, they're supposed to be replaced, not given more responsibility. They're now an immense entity with insidious tentacles throughout the worldwide financial system.
Arrogance and Incompetence
In 1915, according the Federal Reserve annual report, they operated with 35 total employees. Today, they operate with over 20,000 employees costing $1.4 billion per year. The cost to operate the system exceeds $3.3 billion. With 20,000 of the "best" and "brightest," you'd think someone would have predicted the current financial crisis before it hit.
Ben Bernanke thought the underpinnings of the economy were strong, housing was on a firm foundation, and the subprime issue was confined. This instance of incompetence is just one of many since 1913. When examining the history of the Federal Reserve, you realize that it has overwhelmingly been led by weak, pliable, politically motivated men with little or no backbone.
The last two Fed Chairmen have brought the country to the brink of disaster.
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