Abolish The Fed?

We’ve been led to believe that central banks – and especially the Federal Reserve System – was put in place to protect us. That’s a laugh!

Central banks are partnerships created between bankers and politicians. The political side gets spendable money (created from nothing) without having to raise taxes, while bankers get commissions or interest payments in perpetuity. A sweet deal for both sides!

But who gets the shaft? Yeah, you got it: we do.

Let me back up a step though. Did you know that our current central bank is the fourth try at establishing a central bank?

First came the Bank of North America (1781 – 1783). Then came the Bank of the United States (1791 – 1811). And then there was the Second Bank of the United States (1816 – 1836). Why did they fail, and why on earth did we try and try again?

The first central banks failed because the “money” (or notes created) was so susceptible to devaluation and inflation that the public simply lost confidence (can you blame them?). They stopped using the notes (and weren’t forced to) since it wasn’t “legal tender” in the first three attempts.

But as we’re all too familiar with, politicians like spending what they don’t have and bankers like easy money and don’t like to compete for it, so in 1913 Congress passed the Federal Reserve Act, and here we are.

The granddaddy of central banking though is the Bank of England (BOE). The BOE started in 1694 and has financed England through countless wars and has seen innumerable politicians come and go. It’s the standard for and the basis of most central banks around the world today. Napoleon started the Bank of France based on the English model and we followed suit a few decades later.

But how did they (bankers and politicians) get around the U.S. Constitution, which doesn’t allow Congress the power to create a bank?

To be blunt, they deceived the public, and they had a pretty sophisticated plan to do so. A group of six rival bankers and politicians met secretly in 1910. These few individuals, which represented as much as a quarter of the world’s wealth, came up with a plan to get the bank going.