It is always a better for trade to have a "medium of exchange" rather than a barter system. Barter system: two sheep for a haircut, Medium of Exchange; $25 for two sheep, $50 for a haircut. In the free banking system, there were very little regulations and each of those banks created its own "medium of exchange." They were notes or bills that the bank would give you representing that you had deposits with the bank, this was the currency. The currency would only be valid if the bank still existed, if the bank was in trouble or thought to be in trouble your note would be worthless than if the bank was considered stable. The US government stepped in created its own medium of exchange (the dollar) to wipe out all these different currencies to increase trade and confidence in the economic system. The Federal Reserve was created so that no politician could have control over the money supply. When politics are involved you see things like hyperinflation in Zimbabewe recently and Germany circa 1923. This is why its "privately owned," to keep it out of politicians hands, not because its in the hands of a banking cartel. The profits earned are payed back to the treasury department, not the bilderburg group or whatever. The Fed definitely screwed up in the 1930s by tightening the money supply, but overall we have had much less volatility in financial markets during the Fed era than before. The Fed tries to control the boom/bust cycle that was so prevalent in the begining of the industrial revolution. 5yr
I've had a hunch about the FED bank since my Stint at Loyola in Chicago and my unfinished, don't care that I left, University of Chicago NO MBA program. But, unless we tear the system down, the entire capitalistic system in the country, nothing will change with the FED. So, you better focuse your time on how to make money in the next decade while the FED play's it's game. Read about the "Theory" and the Theories of why, who, what where. But it means nothing in the long run. Pick your battles I was taught as I climb the ladder of wealth. But it is interesting. I wonder if Ron Paul is on to something about FORT KNOX and no physical gold. But then again, it means nothing in the long run because it is all outa my control. What is in my control is making money. But I agree, it is wise to know or not know the Truth about the FED. But then again, it means nothing in the long run.
No one is saying here to pick a battle with the Fed or to go lynching Bernanke and his cronies. But if you know and understand why the Fed's screwed and therefore the country you will make better personal and financial decisions not to mention trading decisions. The guys at mises.org knew well in advance a housing and banking crisis were due in the US because of the Fed's policies, and that knowledge was worth having because it's worth a lot of money.
I am still kind of curious since I do not believe that anyone actually answered my question. Has anyone here actually read the book and, if so, what do you think of it?
I don't think anyone has actually mentioned the root of the problem which is FRACTIONAL RESERVE BANKING. before the fed existed in the US there were always massive bank runs whenever a crisis hit. one of the purposes of the fed was to put a stop to the bank runs. and in that sense they are absolutely right: if you are gonna have fractional reserve banking then you have to have an institution that backstops the banks. the solution to all this garbage is EXCEEDINGLY SIMPLE! abolish all legal tender laws! let the free market decide what will be the currency. if some morons accept paper notes of their own volition as payment then more power to them. what will happen though is that the market will ultimately determine a currency. and, if people want to bank with a fractional reserve bank then they can. I imagine most sane people would ONLY bank with a 100% reserve bank. even 99% reserve would rightfully be considered FRAUD! indeed, did you guys know that in around 12th century spain fracional reserve banking was PUNISHABLE BY DEATH?! FRACTIONAL RESERVE BANKING is the root of all the world's problems. the federal reserve is a tiny insignifcant kunt compared to this core problem.
Yes I read most of it several years ago. But I prefer the videos on you tube as suggested and that's why I suggested you follow up with money masters and secret of oz as you will see they are closely related. Its a great book and all true, I believe. After that look up how Bush's Granddady financed Hitler http://www.youtube.com/watch?v=hkojpgNZD9I Look up who is top tier at Bilderberg, CFR, and Trilateral Commission? Rothschild and Rockefellers. David Rockefeller on Population Control http://www.youtube.com/watch?v=ClqUcScwnn8 Aaron Russo RIP on Rockefeller talking about 911 at 2.47 minutes http://www.youtube.com/watch?v=7nD7dbkkBIA&feature=related