The Federal Reserve is the foundation of where the US government became intertwined with private banking interests. For decades private banking commissions tried to persuade the public into a reserve system, but to no avail. Congressman Nelson Aldrich (whos grandson was David Rockefeller), proposed a bill that would allow a private bank to print, regulate and charge interest to the US money supply in order to eliminate stock market scares. Nelson was not very popular at the time because of his public ties to J.P. Morgan and his son-in-law John D. Rockefeller, so when he proposed the bill it was initially met with censure. The bill was written in a secret meeting with some of the most powerful bankers in the world at Jekyll Island Club, GA.
That is until the "Bankers Panic of 1907" occurred brought on by, you guessed it, bankers. They decided all at once (totally not suspicious) to call in their loans on brokerage firms across the country. This led to mass panic and bank-runs where people pull their money out of the banks for fear of it being lost in the chaos. It's a good thing we had J.P. Morgan there to use a portion of his wealth to buy up cheap bank forfeitures in order to prop up the stock market. In a proceeding domino effect, Tennessee Coal Iron and Rail was used as collateral from a brokerage going, well... broke, who failed to corner the market in an illegal financial scheme. Once again, J.P. Morgan steps in for an emergency takeover (approved by Theodore Roosevelt) and buys the company merging it into his own J.P. Morgan Steel Company.
At first, Morgan was praised as a hero, but once the details started to emerge about him possibly being responsible for the market scares in the first place, Congress decided to investigate. The Pujo Committee, created in response to the investigation on Morgan's affairs, found that J.P. Morgan & Co. had around $22.5 billion in assets. At the time, the entire New York stock exchange totaled only $4 billion more at $26.5. Luckily for Morgan, he died before the committee could take any legal action. In order to prevent the market from falling again, Congress passed the Federal Reserve Act of 1913 on December 22, three days before Christmas.
In order to determine the effectiveness of the act, we should look at its desired effect and how well the effect was delivered. If the goal was to regulate the market to prevent stock market drops and interest rates, we can know very clearly that it failed in every sense of the word. Following the inception of the banking cartel known as the Federal Reserve, the immediate US money supply skyrocketed and abundance ensued due to regulatory spending by the Federal Reserve until October 29, 1929. The bubble expanded until it had to pop. The synthetic wealth, created by loans and given by banks, led to great economic improvement until the banks called in their loans again. That once again led to mass panic which is a detriment to economic productivity. Leading to the highest unemployment rate the US has ever seen. The Great Depression led to nation wide poverty and famine for over 10 years.
For people like John D. Rockefeller, this is just what the doctor ordered. Thousands of ambitious entrepreneurs working hard to develop their goals and businesses only to be forced out of the market through circumstances out of their control. Having their properties and livelihoods bought up for pennies on the dollar because someone else saw this coming. But an elite in-group knows the mathematical formula behind the Federal Reserve's plan to rapidly inflate the money supply only to cut it off and consolidate wealth to the top earners who would be only marginally effected.
Now that we can see the Federal Reserve Act was in fact intended to create more market fluxes we can be sure the intentions told to the public were false. In reality what the federal Reserve Act did was allow congress to decide on a monetary budget even if it led us into debt. You see, by dissolving our ability to print our own money and giving it up for borrowing the money at interest by a private organization loosely tied to the government, we have placed ourselves into a never-ending debt cycle. This would be dangerous if the Federal Reserve actually had to make a profit, but since they are the sidekick of our government, it's really a win-win.
Let me explain the debt cycle system: I have all of the dollars. You need $1 to buy a bottle of water. So you borrow $1 dollar from me at 0.25% interest. Now you owe me $1.25 but there is not enough money in circulation to pay off the debt created by interest. You must loan out another dollar in order to pay the initial debt off, which creates more debt that you will need to borrow more money for. You will never be able to pay off the principle because there is no way to have more than what is loaned.
This is the cycle our government, and just about every other government has fallen into, and it's not an accident. When governments work with their Reserve system, they continually get whatever loan they desire and have no fear of the loan being called in. That allows them to essentially fabricate wealth from nothing and have infinite economic growth. In a world of scarce resources, is infinite growth a possibility?
This is why a dollar in 1960 has the buying power of $8.21 today.