The United States Federal Reserve Banking System
The Federal Reserve continues to be an anomaly in American domestic and foreign politics. Created by the Federal Reserve act of 1913 under Woodrow Wilson, the Federal Reserve’s primary purpose is to centralize the banking system and monetary system of the United States of America.
Because oil has been priced in oil for so long and the majority of oil transactions were conducted in dollars, the US dollar has been able to reign supreme and the US government has been able to spend from massive deficits, but with other countries switching their oil purchases to other currencies or direct exchanges, the US dollar become more and more irrelevant to world commerce by the day, and with it, its underlying hegemony and stronghold on the world.
The Federal Reserve: Good or Bad?
There have always been debates as to whether a central-bank would be in the American people’s best interests. One of America’s maverick presidents, Andrew Jackson, fought the idea of a central bank until the day he died and even had an assassination attempt made upon his life while he was president.
And while Woodrow Wilson later regretted his decision to sign the Federal Reserve act, central banking is not a new concept. There will always be real and perceived benefits and disadvantages of a central banking system, especially a very loosely supervise one like that of the Federal Reserve up in America.
The United States Federal Reserve Banking System Doesn’t Like Being Audited
Many American politicians, both conservative and liberal, have in recent years urged an audit of the Federal Reserve banking system. This has been done since the banker bail outs of 2008 and 2009, as well as continued quantitative easing, or federal stimulus enacted and continued from the beginning of the recession to this very day.
Essentially many Americans have started to point a finger at America’s monetary policy is being one of the major causes of our economic woes. This is largely because of the Federal Reserve does not count inflation when it makes its economic analyses. Inflation and cost-of-living however affects the middle-class, the lower-class, and the marginal class more than anyone else in this country.
The Federal Reserve has pros and cons, but it’s all about the details. And lots of people are missing the important ones.
My opinion about the Federal Reserve is that they do not really care about inflation or high costs of living or the pain that most Americans have to endure as a result of loose monetary policy. The Federal Reserve is more concerned about the Titanic not sinking. They are manipulating the currency, interest rates, and price of stocks through their policies.
It’s the classic band-aid over a gunshot wound treatment. But the Fed Reserve doesn’t know what they’re doing. They’re just doing what they hope will work, even though all the numbers are coming back showing stimulus has not had the desired effect. That is in my opinion because the current system is broken and the only way to fix it is to change it, and other countries have already started taking action to be far away from the wake of the Titanic when it finally sinks.
And that really is what the American economy and the US dollar are at this point: the Titanic. The ship is sinking, and people are starting to drown and fall overboard. They are drowning in debt, lack of disposable income, under or unemployment, and a lack of entrepreneurial spirit.
And who can really blame them?
Who wants to start a business and take a risk like that in a bad economy and any country that is becoming increasingly socialist? Why spend all your time working hard and building something if you don’t know that it’s going to work out for you financially or how much money you will actually get to keep from your venture?
In the end, it’s all excuses.
Still, a poor worldwide monetary system like exists today is no excuse for anyone to stop trying and to stop working. Many people have fallen victim to politicians which is made great promises. Many people have put the cart before the horse. Politicians say people need jobs. People here this and start repeating it. People think they need jobs. However, people need products and services, not jobs. Jobs are the result of a market need being filled.
People must determine what the market needs, however this requires creative thought, which is stifled in our society at every point along the way. Many people have turned off their creative brains and minds in the false name of science. What they have really done is taken on the idea of science as dogmatic religion itself.
What science actually is
If I drop an Apple, I know that 10 out of 10 times it will fall and hit the ground due to gravity. That is science. How old we all think the earth is or whether we think the universe was created by a giant random explosion or by the act of an intelligent creator, at the end of the day, the apple still falls the same direction.
We need to stop being so dogmatic about our paper currency, our government institutions, and the way our society is structured and organized. As I write this, I am a 34-year-old male and I own my own business. I see this as something I wanted but also as a necessity.
We need to stop looking for companies to be our nannies. We need to stop looking towards the government to be our nanny. We need to start creating the next big small thing.
Many eggs. Many baskets.
We definitely need to diversify and expand our assets, our savings, portfolio, and investments. Because regardless of whether you think the Federal Reserve and fiat currency is a good idea, a bad idea, or a non-factor in your finances, the federal debt is unofficially completely unsustainable. And the government will print and print and print money until it cannot anymore, because it does not know how to solve the underlying, fundamental problems that have gotten us to this point.
Because at the end of the day, the Federal Reserve is not responsible for drafting the United States federal budget. Congress is. The president is. And we are.
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