The Federal Reserve – Part 1
Biblically, money is spoken 140 times in the Bible according to the New Strong’s Expanded Exhaustive Concordance with the bulk of the word found in the Old Testament.
It is so interesting to note that the last verse containing the word “money” is found in 1 Timothy 6:10—(NIV) For the Love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs.
When reading the above verse, look at the very last word that Timothy ends with in the sentence—griefs.
Please keep this word in mind for the future as we unlock this mystery system of weights and balances that the United States of America has been under since December 23, 1913.
Fellow American and fellow Christian, has the Federal Reserve System and its personnel fallen for the love of money? Why did President Woodrow Wilson create the Federal Reserve System? What does the United States Constitution say about congress and printing money?
This subject is very dear to the author for I wish to provide Christian commentary on a corrupt system that was and is designed to make the rich richer and the poor poorer.
Presently, here in America, we are seeing the erosion of the “middle class”, food shortages, gas skyrocketing prices, rampant inflation, money giveaway programs, and worst problem of all – DEBT!
The next crisis that America will see is recession as it is just around the corner as it will affect every American in this land. If you don’t believe me, then go back and read my series on the depression and its effects in the 20th century.
Who is the Federal Reserve and what are their functions?
From the Federal Reserve:
About the Fed
The Federal Reserve System is the central bank of the United States. It performs five general functions to promote the effective operation of the U.S. economy and, more generally, the public interest. The Federal Reserve
- conducts the nation’s monetary policy to promote maximum employment, stable prices, and moderate long-term interest rates in the U.S. economy;
- promotes the stability of the financial system and seeks to minimize and contain systemic risks through active monitoring and engagement in the U.S. and abroad;
- promotes the safety and soundness of individual financial institutions and monitors their impact on the financial system as a whole;
- fosters payment and settlement system safety and efficiency through services to the banking industry and the U.S. government that facilitate U.S.-dollar transactions and payments; and
- promotes consumer protection and community development through consumer-focused supervision and examination, research and analysis of emerging consumer issues and trends, community economic development activities, and the administration of consumer laws and regulations.
Let’s go back in history when Woodrow Wilson was president and the United States and the “panic of 1907” came about under his presidency.
This Article will provide the beginning of the Federal Reserve system and the game of chess in our economic system:
J.P. Morgan, The Panic of 1907, & The Federal Reserve Act
In 1907, J.P. Morgan and other wall street bankers rescued abnks, the stock market , and New York city from financial ruin. 1913, congress pass the federal reserve Act, which put the government in charge of managing future financial crises.
In 1900, more than 20,000 banks operated in the United States (compared to fewer than 8,000 today). When people deposited money in a bank, it did not just store the cash in a vault. The bank made its profits by lending most of these funds to businesses and individuals and charging interest on these loans.
Banking regulations required most banks to keep a certain percentage of their deposits, called reserves, in ready cash or easily available. Small town banks often deposited some of the reserves in larger city banks to earn interest there, but they could quickly call back their reserves as needed.
The city banks in turn usually deposited part of their required reserves in the biggest city banks. A large percent of the reserves that flowed up this chain of banks ended up in New York City’s Wall Street financial institutions, the largest banks of all.
Wall Street banks made loans to railroads, huge corporations, and even to the U.S. government. They also invested in stocks and bonds. In this way, Wall Street financed much of America’s booming industries.
When things went smoothly, money from bank reserves flowed up the chain of banks to Wall Street and then down the chain in the form of profitable interest. But things did not always go smoothly. Bank Panics!
One problem was the frequent shortage of money in circulation. To meet an increase in the demand for loans, local banks sometimes had to call back reserves they had deposited in city banks. In turn, these banks then often had to call back their reserves from up the chain of banks.
The United States did not have a central bank. In 1836, President Andrew Jackson had refused to recharter the Bank of the United States. Thus, no national central bank managed the supply of money or acted as a “lender of last resort” to keep banks in business when they temporarily ran short of cash.
Repeated bank panics broke out during the 19th century. Such events occurred suddenly when depositors, acting on real or imagined fears, ran to their banks to demand their cash deposits back.
insurance (created in the 1930s), if a bank went under, its depositors lost all their money.
Please consider finishing this article as this link:
Upon reading the above article, it is time to explore various questions that have arisen and thoughts on those who became drunk on power. This article sheds light on the birth of the Federal Reserve and how they became entrenched in our economy.
It is interesting to note that our past president Thomas Jefferson quoted the following:
A private central bank issuing the public currency is a greater menace to the liberties of the people than a standing army. We must not let our rulers load us with perpetual debt.
Thomas Jefferson
The end of democracy and the defeat of the American Revolution will occur when government falls into the hands of lending institutions and moneyed incorporations.
The reason that Christianity is the best friend of government is because Christianity is the only religion that changes the heart.
Please take the time to read the above quotes from a very wise president who had refused to recharter the Bank of the United States. Thus, no national central bank managed the supply of money or acted as a “lender of last resort” to keep banks in business when they temporarily ran short of cash. Why? We must not let our rulers load us with perpetual debt.
Usury and debt are two major evils and yet, we have all experienced both of them in our lifetime.
Stay with me for the second instalment of The Federal Reserve System.
