I hope to engage into a great debate on why america allows the fed to control our money.

As an American citizen I was shocked when I found at that the Federal Reserve is not actually federal. It is no more than a private corporation. Yet, this corporation is in charge of one of the greatest assets of any civilization..Our Money!

The history of the fed is an interesting one!

Alexander Hamilton in 1791 set up the Bank of the United States. To distribute money throughout the united states. Thomas Jefferson was not keen on the idea (rightfully so) of a Central bank. He dismantled the Bank of the United States twenty years later.undemocratic tool of the northern banking establishment. jefferson

1816 the government made another attempt to set up an inflationary national bank. andrew jackson saw this as a monster bank benefiting a few at the expense of many. jackson abolished the bank in 1836. by then hundreds of speculators private banks had already been established and they were holding little to no gold to back up the notes they were issuing.

1834 the gold standard was introduced. the gold standard was understood by our founding fathers to be the money of the people. one dollar was worth about 1 twentieth of an ounce of gold. it was supposed be money that could not be inflated to allow government expenditures to skyrocket.

1862 Abraham lincoln needed to fund his invasion of the south. so we once again begin to print money. this is the first use of the term green backs. these green backs where not redeemable for gold.

After the civil war we returned back to the gold standard. From 1879 until the 1889 we had the best growth in the countries history. For 20 years our economy was filled with genuine saving and investment which led to more capital goods.

1896 J.P. Morgan and John D Rockefeller decide to collaborate

They both favored a central bank and cheap credit and an inflated money supply to fund the expansion of their empires.

They led a campaign to sell the idea to the american public which eventually led to the Federal reserve.

bank reform campaign of 1907

There was a run on some of new yorks bigggest banks thanks to there fractional reserves. The panic then started. A lot of banks failed. Wall street quickly adopted the fear of bank failures to sell the idea of a federal reserve bank. The federal reserve became a lender of last resort if anything were to ever happen to your bank the federal reserve would pay you the money you had invested.

(the same thing as the FDIC now)

November of 1910

6 men went to jekyl island in florida on a so called duck hunting trip.

2 rockefeller men 2 jp morgan men and 2 government officials wrote up the federal reserve act.

Just before christmas 1913 the federal reserve act was passed by congress and signed by president wilson

after the fed was instituted the gold standard was cut a little. every dollar the fed produced was only required to have 40 % of it backed in real gold

He then created the FDIC in reality the FDIC holds half of one percent of all the deposits it insures.

In the 1960s vietnam came along and we needed more money. President Johnson issued more money from the fed without more gold.

Sad tidbits about how little control we have:

No government budget has been balanced since the end of the gold standard.

The fed to this day coninues to print money out of thin air.

The board till this day holds its meetings in secret.