American Central Banks

[merrylander]

Congress established the First Bank at the urging of Alexander Hamilton. Its term of existence expired before the war of 1812 and inflation went rampant. This resulted in the Second Bank being formed, only to be eventually vetoed by Andrew Jackson with predictable results.

http://en.wikipedia.org/wiki/Second_bank_of_the_united_states

[BlueStreak]

So, we've been here not just once, but twice before?

The article makes me want to delve more into Hamilton. Fascinating individual.

Dave

[Charles]

Concerning Jackson's destruction of the 2nd Bank of the United States and the panic of 1837.

http://mises.org/journals/scholar/trask1.pdf

Personally, I've read it once. It's one of those articles which requires me to let my subconscious absorb it for awhile and then reread it.

Like the warden told Luke, "You gots to get your mind right." And my mind isn't right at the moment.

Chas

[Charles]

So, we've been here not just once, but twice before?

The article makes me want to delve more into Hamilton. Fascinating individual.

Dave

We've been rid of the central banks before, but we've never been rid of fractional reserve banking. And I doubt that we ever will.

Chas

[BlueStreak]

Concerning Jackson's destruction of the 2nd Bank of the United States and the panic of 1837.

http://mises.org/journals/scholar/trask1.pdf

Personally, I've read it once. It's one of those articles which requires me to let my subconscious absorb it for awhile and then reread it.

Like the warden told Luke, "You gots to get your mind right." And my mind isn't right at the moment.

Chas

Sometimes I wonder if the situation causes panic, or panic causes the situation? Or maybe it's a case of around-n-around? In reference to history in general, not by any means excluding the last three to six years. At any rate, panic rarely serves up anything good.:rolleyes:

Dave

[Charles]

Well Rob, you gave it the old college try.

I've noticed that pretty much any thread concerning the history of money or banking always falls flat on it's ass here.

Chas

[BlueStreak]

Oh, I dunno. It kinda drives home the point that we done it twice before......and it didn't work. So, what is up with all of these people screaming that we should do it again? What, third time's a charm?

Dave

[Charles]

Oh, I dunno. It kinda drives home the point that we done it twice before......and it didn't work. So, what is up with all of these people screaming that we should do it again? What, third time's a charm?

Dave

Actually, people are screaming because the game's rigged, and they're right. But today, the argument has been reduced to either advocating debt based money or returning to specie. There is no third way given any consideration, which oversimplifies the issue and offers no reasonable alternative.

Let's start with the 1st BUS.

http://en.wikipedia.org/wiki/First_Bank_of_the_United_States

Hamilton advocated this, while Jefferson was totally opposed. If you read down, Hamilton also advocated that an incorporated business (or bank) was in effect a "person", a notion that draws a certain amount of disgust even today.

Then we have the US Bank Note, or Lincoln's greenback, which lasted for over 100 yrs.

http://en.wikipedia.org/wiki/United_States_Note

At first this was a fiat currency, much like or current Federal Reserve note. The big difference is it wasn't based on debt. And it's backing was manipulated many times as well before it was retired.

Here's an argument for the return to Lincoln's greenback, one of the third ways I brought up before.

http://www.webofdebt.com/articles/lincoln_obama.php

Basically an argument for a stable currency. And as I sit here watching my savings being inflated away while the banks offer a percentage well below the rate of inflation, I can see the advantage to a stable currency.

Don't ask me for the answers because I don't have them. But I do think that arguing over whether to eliminate the Fed Reserve or not misses the point entirely.

Unless we create a stable currency, it doesn't matter if we have a BUS or not, or a Fed Reserve or not, the games still rigged, and the big money boys are going to us it to separate us from the fruits of our labor generated by the sweat of our brow.

To be fair, they'll let us keep our sweat, and just enough that we don't show up and slit their throats for fear of losing what little we have.

And that, in my estimation, is what it's all about.

Chas

[piece-itpete]

This is very interesting, thanks! I keep my big yap shut cause I really don't know much about it. I agree about the stable currency though.

Pete