Today is the 100th anniversary of passage of the Federal Reserve Act.
The Act created a largely corporate controlled national banking and currency system. It was a major coup for banking corporations through the establishment of a private central bank authorized to “monetize” government debt (i.e. to print their own money and exchange it for government securities or I.O.U.’s).
The central banking system was composed of 12 regional private/corporate banks owned by participating commercial banks. All national banks were required to join the system. Banking corporations now controlled the issuance and circulation of our national currency…as debt. By controlling our national money faucet, they could create inflation and deflation.
This corporate monopolization of our currency allowed for public regulation, but not control. It was now banking corporations, not the US government as stipulated in the U.S. Constitution, which was in control of the national currency, with 97% of our money created as debt by banking corporations.
As for the Fed’s record, the dollar has lost over 95% of its value since 1913, the greatest depression the nation has even experienced occurred in the 1930’s and the Fed is in the midst of printing historic sums of money ($85 billion per month, which was just “tapered” to a mere $75 billion per month as of last week) out of thin air under their Quantitative Easing (QE) program, which has been largely invested in the major banks to offset their trillions of dollars worth of toxic assets and fuel a stock market “bubble.”
“It must not be felt that the heads of the world’s chief central banks were themselves substantive powers in world finance. They were not. Rather they were the technicians and agents of the dominant investment bankers of their own countries, who had raised them up, and who were perfectly capable of throwing them down. The substantive financial powers of the world were in the hands of these investment bankers who remained largely behind the scenes in their own private banks.” – Carroll Quigley, Tragedy And Hope
“When plunder becomes a way of life for a group of men living together in society, they create for themselves in the course of time a legal system that authorizes it and a moral code that glorifies it.” – Frederic Bastiat