Most truly evil things start off as what sounds like a good idea. All it takes is one or two course corrections, and what seemed like a brilliant plan yesterday morphs into a nightmare come true today. I won’t say the federal reserve is a prime example of that, but I won’t say it isn’t either. I’ll tell you what I’ve heard and read, and leave you to draw your own conclusions.
The first time someone told me the federal reserve was privately owned, I thought they were being silly. Then it became one of those tidbits that everyone was talking about, for a little while. Someone coined the phrase ‘the Federal Reserve is no more federal than Federal Express’ and a whole bunch of other people starting saying it.
Because it’s true.
Historians will tell you that a country with no central banking system is going to fail financially, and they are most likely correct. The United States was definitely faced with a lot of problems in the beginning, when citizens were still using currency from the empire they had just left behind. One central bank after another failed, as they loaned out more money than they had and couldn’t pay up when times got tough. Many a politician tried to propose some actual federal banking system, and many a politician was shut down one way or another.
A bunch of laws got written over the years, allowing for some kind of federal bank to form. Several folks tried to do so, several times, with as little success as all the others. It wasn’t until the last great failure was looming, and all the banks were once again suffering from overextension, that one man stepped in to begin the system we have today. In 1913, J.P. Morgan offered to loan money to nearly all the failing banks so they wouldn’t fail completely. One dude had enough cash to buy out the debts of multiple banks, and that’s what he did.
That’s when the federal reserve was officially formed.
Since then, laws have been passed on several occasions that limited the powers of the federal reserve and increased its transparency. Why? Well, because they set interest rates. They control inflation. They determine the value of the American dollar with their policies, and some of the policies they have set have gotten a little out of hand. You can find these laws being passed throughout our country’s short history, during all the financial crashes we have gone through since handing over our financial stability to a small group of private citizens.
Even the fed’s own website is a little confusing and contradictory. They say the banks that make up the federal reserve operate as private businesses, but in the interest of public welfare. They also say the government oversight committee is beyond the reach of political pressure, while stating in the next breath that the two most important people on the committee are directly appointed by the President of the United States. Funny, that kind of sounds like a system designed to make bankers and politicians richer at the cost of American citizens. And that’s their own website!
Plenty of other websites exist out there that will tell you all kinds of freaky stuff about the federal reserve. It’s easy for a lot of people to discount these claims, since the term ‘conspiracy theory’ seems to confuse a lot of them. Let’s clear that up, real quick.
If you and I decide to start a business together, we are conspiring. All of our phone calls and emails and lunches where we talk about the business are examples of us conspiring. Anyone we hire or do business with are our co-conspirators. If our business is successful, it will depend on our continued conspiracy to stay together or grow. Very few things get done in this world that are not the result of some kind of conspiracy, and that’s no theory.
Some people like the idea of having other people be in charge of everything, and many of those people don’t like to acknowledge that just being in charge requires these people to conspire. Even if they have the best interests of everyone in mind, they need to work together toward that goal. Working together toward a common goal is literally the definition of conspiring. The question isn’t whether or not they do it, then; it now becomes whether they are acting in their own interests or to the benefit of everyone.
Ask your favorite history buff sometime: who walks away from financial collapses in America with their pockets stuffed full of cash and who historically loses everything? Does inflation benefit anyone? How about interest rates? Or stock market crashes? They might start sounding like one of those conspiracy theorists if you ask too many questions.
But I’m not here to judge, really. I personally think that the fundamental problem comes from putting the power to control one individual or entity into the hands of another individual or entity. Whether it’s thought control, behavioral control or financial control…history again shows that those with power are the only ones who take indiscriminately from those who lack it. Rather than do it at gunpoint, more civilized institutions simply write laws that make the taking legal for them and illegal for the common folk.
You can call me a conspiracy theorist if you want to. From where I stand, it is clear that the world is built on conspiracies. Some of them are good, others not so much. When the people conspiring won’t clearly state their intentions in doing so, the rest of us are left to either trust them blindly or wonder what they’re really up to. We can’t help but theorize, if they won’t tell us!
The last thing I’ll say about the Federal Reserve is that it has been criticized more than once by folks on the inside. Many people look back on John F. Kennedy as one of our greatest presidents, if not the greatest. He was the last president that tried to take down the Federal Reserve, and he almost had the battle won. Like so many other battles, that one ended with a bullet. Although theories on the origins of that bullet and its magical nature abound, the nature of Kennedy’s many warnings to the American people are no mystery. Since they came right on the heels of Eisenhower’s terrifying farewell address, the title for next week’s post kind of wrote itself. After all…
‘We were warned this would happen!’
We’ll be thinking about that next week, even if it hurts.
Thanks for reading!
All the best,