“He who controls the money supply of a nation controls the nation”: James Garfield
October 3, 2009 4:31 AM Subscribe
posted by Mutant (54 comments total)
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The First Bank of the United States
was Americas first attempt at forming a Central Bank
. Inaugurated by Congress in 1791, it was followed by The Second Bank of the United States
, which was dissolved in 1836.
And then The United States of America was without a Central Bank for 77 years.
Those were hardly halcyon years; as US States and banks shared responsibility for printing money, inflation, asset volatility, market crashes and even depressions were common, for example The Financial Panic of 1837
, The Panic of 1857
, The Panic of 1873 (aka "The Long Depression"
), The Panic of 1893
, and the Panic of 1907
Central Banks serve two very important groups of customers: they provide banking services both to the government
as well as retail
and investment banks
. Also, as recent events have shown, the importance of their role as "lender of last resort"
in time of financial stress (systemic
as well as specific
) can not be underestimated.
Regardless, suspicion of Central Banking
is very high in post bailout America, leading to a variety of demands ranging from requests for an audit of The Federal Reserve
, to more extreme views that The Federal Reserve should be abolished
But if not The Fed then who would control the nation's money supply?