Exposing the Fed: What is the Federal Reserve? Part 3 Editor Note: For those of you who are not familiar with Marilyn MacGruder Barnewall, she is the woman who wrote the definitive book on Ambassador Lee Wanta, Wanta! Black Swan, White Hat. I listened to several interviews with Marilyn that were conducted by Teri Ambach and the team at Global News and Views on Facebook. Marilyn is fantastic and extremely knowledgable. If she has something to say, you’d be wise to listen and take note. (Marilyn MacGruder Barnewall, Global Financial Affairs Editor) Unfortunately, the same cannot be said about the Federal Reserve System. It is a privately held corporation owned by bankers… most of whose names are seen on Wall Street (though international banks now own larger and larger shares of the Federal Reserve System, placing control of America’s economy in the hands of non-American foreigners). Before talking about what the Federal Reserve System does, one other important fact needs to be mentioned: The Federal Reserve is an unlawful organization.
The Evolution Of Banking With the exception of the extremely wealthy, very few people buy their homes in all-cash transactions. Most of us need a mortgage, or some form of credit, to make such a large purchase. In fact, many people use credit in the form of credit cards to pay for everyday items. Tutorial: Introduction To Banking And Saving Divine DepositsBanks have been around since the first currencies were minted, perhaps even before that, in some form or another. Flipping a CoinThese coins, however, needed to be kept in a safe place. Coins could be hoarded more easily than other commodities, such as 300-pound pigs, so there emerged a class of wealthy merchants that took to lending these coins, with interest, to people in need. The First BankThe Romans, great builders and administrators in their own right, took banking out of the temples and formalized it within distinct buildings. Visa RoyalEventually, the various monarchs that reigned over Europe noted the strengths of banking institutions.
Rockefeller family The Rockefeller family /ˈrɒkɨfɛlər/ is an American industrial, political, and banking family that made one of the world's largest fortunes in the oil business during the late 19th and early 20th centuries, with John D. Rockefeller and his brother William Rockefeller primarily through Standard Oil. The family is also known for its long association with and control of Chase Manhattan Bank. They are considered to be one of the most powerful families, if not the most powerful family, in the history of the United States. Real Estate and Institutions The Rockefeller Center and the RCA Building, December 1933 The family was heavily involved in numerous real estate construction projects in the U.S. during the 20th century. Chief among them: Conservation The family was honored for its conservation efforts in November, 2005, by the National Audubon Society, one of America's largest and oldest conservation organizations, at which over 30 family members attended.
Central bank The primary function of a central bank is to manage the nation's money supply (monetary policy), through active duties such as managing interest rates, setting the reserve requirement, and acting as a lender of last resort to the banking sector during times of bank insolvency or financial crisis. Central banks usually also have supervisory powers, intended to prevent bank runs and to reduce the risk that commercial banks and other financial institutions engage in reckless or fraudulent behavior. Central banks in most developed nations are institutionally designed to be independent from political interference. Still, limited control by the executive and legislative bodies usually exists. The chief executive of a central bank is normally known as the Governor, President or Chairman. History Prior to the 17th century most money was commodity money, typically gold or silver. Bank of England The sealing of the Bank of England Charter (1694). Spread around the world
J. P. Morgan John Pierpont "J. P." Morgan (April 17, 1837 – March 31, 1913) was an American financier, banker, philanthropist and art collector who dominated corporate finance and industrial consolidation during his time. In 1892 Morgan arranged the merger of Edison General Electric and Thomson-Houston Electric Company to form General Electric. Morgan died in Rome, Italy, in his sleep in 1913 at the age of 75, leaving his fortune and business to his son, John Pierpont "Jack" Morgan, Jr., and bequeathing his mansion and large book collections to The Morgan Library & Museum in New York. At the height of Morgan's career during the early 1900s, he and his partners had financial investments in many large corporations and had significant influence over the nation's high finance. Childhood and education J. In the spring of 1852, illness that was to become more common as his life progressed struck; rheumatic fever left him in so much pain that he could not walk. Career Early years and life
Great Depression USA annual real GDP from 1910–60, with the years of the Great Depression (1929–1939) highlighted. The unemployment rate in the US 1910–1960, with the years of the Great Depression (1929–1939) highlighted. In the 21st century, the Great Depression is commonly used as an example of how far the world's economy can decline. The depression originated in the U.S., after the fall in stock prices that began around September 4, 1929, and became worldwide news with the stock market crash of October 29, 1929 (known as Black Tuesday). The Great Depression had devastating effects in countries rich and poor. Cities all around the world were hit hard, especially those dependent on heavy industry. Some economies started to recover by the mid-1930s. Start Even after the Wall Street Crash of 1929, optimism persisted for some time; John D. Together, government and business spent more in the first half of 1930 than in the corresponding period of the previous year. Economic indicators Causes Keynesian Marxist
Woodrow Wilson In his first term as President, Wilson persuaded a Democratic Congress to pass a legislative agenda that few presidents have equaled, remaining unmatched up until the New Deal in 1933. This agenda included the Federal Reserve Act, Federal Trade Commission Act, the Clayton Antitrust Act, the Federal Farm Loan Act and an income tax. Child labor was curtailed by the Keating–Owen Act of 1916, but the U.S. Supreme Court declared it unconstitutional in 1918. Wilson also had Congress pass the Adamson Act, which imposed an 8-hour workday for railroads. Although considered a modern liberal visionary giant as President, Wilson was "deeply racist in his thoughts and politics" and his administration racially segregated federal employees and the Navy. According to Wilson biographer A. Scott Berg, author of Wilson, an 815-page biography; "No matter what time you lived, some of the things Wilson said and did were racist. Early life Wilson c. mid 1870s Personal life Academic career
Federal Reserve Act Federal Reserve The Federal Reserve Act (ch. 6, 38 Stat. 251, enacted December 23, 1913, 12 U.S.C. ch. 3) is an Act of Congress that created and set up the Federal Reserve System, the central banking system of the United States of America, and granted it the legal authority to issue Federal Reserve Notes, now commonly known as the U.S. Dollar, and Federal Reserve Bank Notes as legal tender. The Act was signed into law by President Woodrow Wilson. The Act The Federal Reserve Act created a system of private and public entities; there were to be at least eight, and no more than 12, private regional Federal Reserve banks. With the passing of the Federal Reserve Act, Congress required that all nationally chartered banks become members of the Federal Reserve System. Background Central banking has made various institutional appearances throughout the history of the United States. The First Bank of United States The 2nd Bank of the United States Subsequent Amendments
Gold standard All references to "dollars" in this article refer to the United States dollar, unless otherwise stated. Under a gold standard, paper notes are convertible into preset, fixed quantities of gold. A gold standard is a monetary system in which the standard economic unit of account is based on a fixed quantity of gold. Three types may be distinguished: specie, exchange, and bullion. In the gold specie standard the monetary unit is associated with the value of circulating gold coins or the monetary unit has the value of a certain circulating gold coin, but other coins may be made of less valuable metal. The gold exchange standard usually does not involve the circulation of gold coins. As of 2013 no country used a gold standard as the basis of its monetary system, although some hold substantial gold reserves. A total of 174,100 tonnes of gold have been mined in human history, according to GFMS as of 2012. History Origin Silver United Kingdom United States International Japan Bimetallic standard