An Exclusive Look at Central Banking In the United States

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Күн бұрын

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The Federal Reserve has been the United States's central bank since 1913, but is our third attempt at central banking.
The First Bank of the United States was chartered in 1791 and lasted twenty years. Facing strong opposition by Jeffersonians who feared central banks were controlled by foreign interests and primarily benefitted large companies, it lost its re-charter by a single vote.
Debt caused by the War of 1812 led to the charter of the Second Bank in 1816, lasting until Jackson refused to re-charter in 1836.
The Panic of 1907 led to the formation of the Federal Reserve System in order to stabilize prices, regulate banks, manage the money supply and create a single, unified paper currency, at the time based on gold. Since then, the dollar has been inflated over 2,000%, diminishing the value of savings for Americans and anyone holding assets denominated in dollars.
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Пікірлер: 19

@stormbreak13 9 жыл бұрын

Something that still confuses me is who was in charge of the process that decided what were acceptable forms of trade to "buy" dollars at the inception of the first national bank as well as how the arbitration of each items worth that WAS deemed "acceptable" worked.. I mean, imagine how many people might have been utterly screwed because their particular trade was deemed "not acceptable"... I always thought that one of the main purposes of the institution of a universal currency was the eliminate the selectively amorphous nature of a purely barter system... But how else would you describe the arbitration process that initially decided the worth of each commodity traded for dollars if not selectively amorphous? ... I would love if someone could shed some light on this, because so far my internet searches haven't helped much..

@sethsmith927 8 жыл бұрын

It sounds like your describing the idea of credit. I'm not particularly sure who came up with the idea of valuing the things that we don't have, however borrowing is as old as any other concept discussed and it only seems natural it came to be. Just like the way the banking system described here, came to be. It wasn't created with malice or the thought to take advantage of everyone who is bound by the money they produce in their lives. In short, the persons, or institutions that created the idea of these banking systems also set the worth of goods or services, which is absolutely necessary. Like you said, it's a universal capital so the people who make up the system we use, also make up the rules that govern that system. Banks are private entities, and in my experience that translates to "business." Businesses make money, and unless you want to lose the money you made, you will run your business better than your competitors. Thus manipulation of practices & the business of $$$ is born.

@sethsmith927 8 жыл бұрын

...and the part that you already know, that you might not think is that not a lot has changed. People did get utterly screwed over then, just like they do now. They are simply those are the people in need, who don't have options so they have to accept the high interest rate. Leverage is a very prominent concept here. It's a better question to ask... "Why do the few with so much take advantage of the many so little?"

@stormbreak13 8 жыл бұрын

In simpler terms... My question essentially amounted to: "Who decided how many dollars were divided out when the first national bank was founded, to whom, and WHY."... Where did the dollars go? How did people buy them? With that? Sheep? Iron? Oak? Wine? Gold? How many dollars would a sheep buy? And who was in charge of that decision? How many dollars would an ounce of iron buy? Or a hundred pounds of bread?.. Or... Horse-shoes? What if one horse shoe was made by an artisan and took weeks to craft? Would it get preferential treatment over the mundane, simple shoe?... And the more abstract the particular commodity, the more complex the question becomes... In short... you literally did nothing to answer my question, and instead went off on an entirely independent tangent... I appreciate the effort however.

@tauhidershadKUFNAFLORAN 9 ай бұрын

@@stormbreak13 read more and more to figure it out by yourself man, and stop bothering others. Ya bum!!