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[edit] 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[edit] Central banking has made various institutional appearances throughout the history of the United States. The First Bank of United States[edit] The 2nd Bank of the United States[edit] Subsequent Amendments[edit]
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.[2] 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. Personal income, tax revenue, profits and prices dropped, while international trade plunged by more than 50%. Unemployment in the U.S. rose to 25%, and in some countries rose as high as 33%.[3] Cities all around the world were hit hard, especially those dependent on heavy industry. Some economies started to recover by the mid-1930s. Start Economic indicators Causes General theoretical explanations
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. 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 The gold specie standard arose from the widespread acceptance of gold as currency. In modern times, the British West Indies was one of the first regions to adopt a gold specie standard. Australia and New Zealand adopted the British gold standard, as did the British West Indies, while Newfoundland was the only British Empire territory to introduce its own gold coin. Silver Japan
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. After financing the creation of the Federal Steel Company, he merged in 1901 with the Carnegie Steel Company and several other steel and iron businesses, including Consolidated Steel and Wire Company owned by William Edenborn, to form the United States Steel Corporation. 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. Childhood and education[edit] J. Career[edit] Early years and life[edit] J. J.P. After the 1893 death of Anthony Drexel, the firm was rechristened "J.
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.[4][5] Still, limited control by the executive and legislative bodies usually exists.[6][7] The chief executive of a central bank is normally known as the Governor, President or Chairman. History[edit] Prior to the 17th century most money was commodity money, typically gold or silver. Bank of England[edit] The sealing of the Bank of England Charter (1694). Spread around the world[edit]
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.[1] The family is also known for its long association with and control of Chase Manhattan Bank.[2] They are considered to be one of the most powerful families, if not the most powerful family,[3] in the history of the United States. Real Estate and Institutions[edit] 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.[4] Chief among them: Conservation[edit] 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.
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. The world as we know it wouldn't run smoothly without credit and banks to issue it. In this article we'll, explore the birth of these two now-flourishing industries. 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. Visa RoyalEventually, the various monarchs that reigned over Europe noted the strengths of banking institutions.
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 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. Article 1 Section 8 of the Constitution says the following: The loans were to cover up secret bank and corporate bailouts.
Secret Fed Loans Gave Banks Undisclosed $13B The Federal Reserve and the big banks fought for more than two years to keep details of the largest bailout in U.S. history a secret. Now, the rest of the world can see what it was missing. The Fed didn’t tell anyone which banks were in trouble so deep they required a combined $1.2 trillion on Dec. 5, 2008, their single neediest day. Bankers didn’t mention that they took tens of billions of dollars in emergency loans at the same time they were assuring investors their firms were healthy. And no one calculated until now that banks reaped an estimated $13 billion of income by taking advantage of the Fed’s below-market rates, Bloomberg Markets magazine reports in its January issue. Saved by the bailout, bankers lobbied against government regulations, a job made easier by the Fed, which never disclosed the details of the rescue to lawmakers even as Congress doled out more money and debated new rules aimed at preventing the next collapse. ‘Change Their Votes’ The Fed, headed by Chairman Ben S.
Chart Of The Day: Fed Interventions Since 2008 The chart below, via Stone McCarthy, shows the months with Fed intervention since December 2008. That in the past 42 or so months, less than one third have been intervention-free, should close any open questions about whether the stock "market" is anything but a policy vehicle used by the Fed to perpetuate a broke(n) status quo now entirely dependent on every market up (and down) tick. We dread to think what would happen to those record low US bond yields if the market were to be left on its own without the backstop of guaranteed Fed intervention in the interest rate market... ironically something which Barclays is in boiling hot water for right about now. And a detailed breakdown:
Why This Harvard Economist Is Pulling All His Money From Bank Of America A classicial economist... and Harvard professor... preaching to the world that one's money is not safe in the US banking system due to Ben Bernanke's actions? And putting his withdrawal slip where his mouth is and pulling $1 million out of Bank America? Say it isn't so... From Terry Burnham, former Harvard economics professor, author of “Mean Genes” and “Mean Markets and Lizard Brains,” provocative poster on this page and long-time critic of the Federal Reserve, argues that the Fed’s efforts to strengthen America’s banks have perversely weakened them. Is your money safe at the bank? Last week I had over $1,000,000 in a checking account at Bank of America. Why am I getting in line to take my money out of Bank of America? Before I explain, let me disclose that I have been a stopped clock of criticism of the Federal Reserve for half a decade. Let me explain: Currently, I receive zero dollars in interest on my $1,000,000. They will not be able to return my money if: What is the solution?
The Federal Reserve Explained in 7 Minutes Have you ever caught yourself wondering how nearly every country on earth can be in debt to outside sources? In my world, if I owe a friend $10 and he owes me $5 then I simply give him $5 and we call it “even.” But that’s not how the world of international banking works. If you have a minute, Wikipedia tries to keep an updated National Debt List. The reason that nearly every nation on earth has external debt is simple. Even in cases like China, where they own more of our debt than anyone, the Chinese still ultimately answer to the world banking elite. We hear a lot of talk about our National Debt and “debt ceilings” coming out of Washington D.C. but very few talk about the real issues. As long as privately held banks like The Federal Reserve rule the world, then people will always be debt slaves. Furthermore, until people truly start to understand the world banking system and get mad enough to force their will then nothing will change. Every American should watch this but very few will.
IRS Agent Whistleblowers Shelley L. Davis - The first, and last, official IRS Historian. Source: Mr. Chairman and Members of the Senate Finance Committee, I am pleased to be able to share a few of my thoughts and experiences with you today as you explore specific issues of IRS abuse of those the tax agency likes to call its "customers" -- American taxpayers. For 16 years I worked as an historian for the federal government. My testimony today will touch briefly on three areas: 1. ) The cultural climate of the IRS; 2. ) List keeping at the IRS; 3. ) The IRS definition of "tax protester." My introduction to the culture of the IRS came during my earliest days with the tax agency, in the fall of 1988. This reluctance to think about the past translated into routine day-to-day operations, meaning that all documents were tossed, shredded, whatever, when a program was completed--or shut down as in the case of many IRS computer projects. Thank you.