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“Whenever you find yourself on the side of the majority, it is time to reform (or pause and reflect).”
― Mark Twain
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How Politicians Hijacked A Working Federal Reserve
A severe financial panic in 1907 exposed deep weaknesses in America’s fragmented banking system, which then relied on loosely regulated trust companies and had no central authority to stabilize the money supply. Seasonal cash shortages, rigid currency laws, and frequent bank failures made panics common. The 1907 crisis—triggered by failed bets on United Copper, major bank runs, and the collapse of Knickerbocker Trust—sent markets plunging and the economy into recession. With no federal mechanism to respond, financier J.P. Morgan organized an emergency private rescue, revealing the troubling dependence on wealthy individuals to safeguard the system. Public backlash and congressional investigations followed, leading Senator Nelson Aldrich and others to design plans for a central bank. Their work culminated in the Federal Reserve Act of 1913, which created a network of regional reserve banks to act as lender of last resort and manage the money supply. Later reforms strengthened centralized authority, transforming the Fed into a powerful institution guiding U.S. monetary policy today.
The crypto crowd typically screams, "End the Fed." They have no idea what they're actually screaming for.
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