Alternate History Without the FRB

[Aman A.K.A. Ahamburger]

By 1907 most of the economic expansion that is in place today had occurred. The rail road had expanded across the county, as well as, the telegraph. There needed to be some consumer growth across this new great united nation, with tens of thousands of currencies issued across the country and banking panics getting more sever it would only be a matter of time before people become disillusioned by Capitalism; just as they were in Europe.

Lets assume that the work that went into planning the FRB and a single currency would have failed . That banking panics continued and there was no real way to have a long term growth because there was no real way to measure the value of goods and services. Lets face it, that's one of the most important NEEDS for currency in the first place.

Can I say that I know for sure that the developed world would have ended in 1930? NO! However, I know that we wouldn't have continued to grow as strongly as we did into the industrial revolution without a single currency because guys like Henry Ford would have NEVER been able to raise wages without a real currency.

THIS CHART ILLUSTRATES THAT THE DEPRESSION WAS COMING ONE WAY OR ANOTHER.



Sine the FRB really doesn't have much to do with the early 1900's development in Europe, things would have played out the same over their had the FRB not been created. This means that we can't take HITLER out of the equation because WW1 was ours for sure again in this scenario because of the timing of the creation of the FRB. However, since NA wouldn't have developed so strongly after 1913 by 1940 WE wouldn't have been able to respond that what was at that point, THE MOST POWERFUL ARMY THE WORLD HAD EVER SEEN

Since Hitler had this deal in place...
en.wikipedia.org/wiki/Reichskonkordat

"We should trap the priests by their notorious greed and self indulgence. We shall thus be able to settle everything with them in perfect peace and harmony. I shall give them a few years reprieve. Why should we quarrel? They will swallow anything in order to keep their material advantages. Matters will never come to a head. They will recognise a firm will, and we need only show them once or twice who is the master. They will know which way the wind blows.[12]"

"I have been attacked because of my handling of the Jewish question. The Catholic Church considered the Jews pestilent for fifteen hundred years, put them in ghettos, etc., because it recognized the Jews for what they were. In the epoch of liberalism the danger was no longer recognized.* I am moving back toward the time in which a fifteen-hundred-year-long tradition was implemented.

[/i][/b] I do not set race over religion, but I recognize the representatives of this race as pestilent for the state and for the Church, and perhaps I am thereby doing Christianity a great service by pushing them out of schools and public functions."[/size][/quote]

In conclusion, IMO, the alternate history without the FRB would have been history repeating itself. Just as it had happened countless times before, we would have all been slaves to the Crown and Pope.

[bimetalaupt]

The US Treasury always printed money but before the Federal; Reserve System required banks to keep reserves you could lend almost an unlimited amount of money per capital..

Like the knickerbockers.. HAD LITTLE CAPITAL OR LIQUIDITY BECAUSE ALL ITS START-UP CAPITAL WAS USED TO BUILD AN IMPRESSIVE LOOKING CENTRAL BANKS. FROM MY NOTES ON ECON 689 MANY BANKS IN CITIES LIKE NEW YORK AND ST LOUIS BANKS RATIOS WERE SOMETHING LIKE 1:100.. OR LIKE THE CURRENT FEDERAL RESERVE SYSTEM OR IN GERMANY HYPO-REALESTATE BANK .

ALSO BEFORE THE RESERVE SYSTEM USA OWNED IT OWN BANK FOR 20 YEARS.. FIRST BANK OF THE USA .

Just a thought,
Bruce

[bimetalaupt]

A++..
I love the new board Moon has created for us.. WE all need to send her a thank-you

Like the German Bundesbank is owned by the Federal Government or Bank of North Dakota is owned by the state of North Dakota.. with a DBA!!!

NO PROBLEM... RUN IT JUST LIKE THE FARM BANK CREDIT BANK OF TEXAS.. SHARES COVER FIVE STATES (NM,TX,LA,MS AND AL)... HAS AN AAA CREDIT RATING AND IS SELF FUNDED.. CREATED BY A MERGER OF TWO FEDERAL SPONSORED BANKS IN TEXAS. Yes it is owned by the members ..just like a huge credit union!! Then they could sell bonds Just like we did in WWII..Economic War bonds!! In denominations of $100.00 with special interest for saving for education. AAA+ RATED...!!

Just a thought,
Bruce

[Aman A.K.A. Ahamburger]

I couldn't agree more Bruce it was great that moon started a board for us!!

The only thing is Bruce, where does the currency come from...

[Aman A.K.A. Ahamburger]

Feb 20, 2012 20:45:43 GMT -5 bimetalaupt said:

The US Treasury always printed money but before the Federal; Reserve System required banks to keep reserves you could lend almost an unlimited amount of money per capital..

Like the knickerbockers.. HAD LITTLE CAPITAL OR LIQUIDITY BECAUSE ALL ITS START-UP CAPITAL WAS USED TO BUILD AN IMPRESSIVE LOOKING CENTRAL BANKS. FROM MY NOTES ON ECON 689 MANY BANKS IN CITIES LIKE NEW YORK AND ST LOUIS BANKS RATIOS WERE SOMETHING LIKE 1:100.. OR LIKE THE CURRENT FEDERAL RESERVE SYSTEM OR IN GERMANY HYPO-REALESTATE BANK .

ALSO BEFORE THE RESERVE SYSTEM USA OWNED IT OWN BANK FOR 20 YEARS.. FIRST BANK OF THE USA .

Just a thought,
Bruce

Yes just like the first bank of the USA was created to pay for war and the Greenback was also create to pay for war. The UST may have printed money but after that, ANYONE could print currency as well.

The Federal Reserve System is owned by the USA just like you said Bruce and has provided a stable currency system for the USA to grow during a century when it was constantly under attack.

[Aman A.K.A. Ahamburger]

To expand on the era around the New Deal conversation from the muni bonds thread a bit, Hoover thought the Capitalists would step up and spend to get through the depression and they didn't. The reality is though, the problem was the depression ENDED a long run of WELFARE Capitalism. The BANKERS and INDUSTRIALISTS had NO money left, basically. They would have kept building had the banks been recapitalized. Basically FDR and others seen the New DEAL as a way to take the money out the the bankers hands and make the GOVT look like the hero.

Just to expand a bit upon the fact there was no money in the system left for expansion at the creation of the Federal reserve and the great industrial revolution was about to ground to a screeching halt.

Remember, Free enterprise was founded on the principals of love they neighbour and take care of the poor. Except when they revolutionaries finally got control they forgot the most important lesson of all. TEACH people how to FISH! They tried to keep the people down and just GIVE them BITS of money to keep them quite because they thought they knew what was best. Their hubris lead to the greatest disaster we have know in modern times, however, what was create in 1946 again?

If the early revolutionaries would have just kept to the principals of what Adam Weishaupt ( en.wikipedia.org/wiki/Illuminati ) talked about, how he wanted to instill the true word of Jesus Christ, it wouldn't have taken so long for us to get to the point that we are at now. A place that business and science and education can support the masses and we can all get along in a global sense and ACCEPT each others differences. There is no longer a need for a govt(KING) to support because the people have enough money to support themselves! Some know who to thank.

Welfare capitalism
en.wikipedia.org/wiki/Welfare_capitalism

How 'Welfare Capitalism' Can Save Our Country
www.dailyfinance.com/2011/09/19/how-welfare-capitalism-can-save-our-country/

Not WELFARE.. LIBERAL. TEACH people to be business people!

[Aman A.K.A. Ahamburger]

One hundred years ago today the Federal Reserve system was created. I thought I would post some informative articles to celebrate the 100th birthday of the institution that has been instrumental in keeping us free. As I have laid out in the posts above, an alternate history without the FRB is most likely not a pretty one.

How the Fed Came to be
How the Federal Reserve was created
Bernanke’s Recession-Fighting Weapon Developed by 1900s Banker

[Aman A.K.A. Ahamburger]

Ah yes, as mentioned many times before, and it now deserves to be put here... 

Federal Reserve passes its own stress test
The Fed, of course, doesn't have to worry about being bailed out or not. The government is already on the hook for all its losses, and gets to keep its gains. But what the Fed does have to worry about is that if it were to start losing taxpayer money, that, on top of the claims that its policies are ineffective, might force the central bank to reluctantly shift course.

One thing the Fed has going for it is that it doesn't have to ever sell the bonds it owns. It could hold them until they are paid back. So even if the bonds it owns fall in value, the Fed doesn't actually have to record a loss, as long as it doesn't sell and the bond is eventually paid back.

[Aman A.K.A. Ahamburger]

It seems that politician has always just been a word that means; lazy, spoiled, brat. The dysfunction that goes on, on Capital Hill right now is nothing new. The fact of the matter is that if the operation of the economy - A.K.A, the country - were left to the politicians; the USA would have ceased to exists after about 1910.

Truth through history. Thanks, J.C.

The Jekyll Island duck hunt that created the Federal Reserve

Several banking leaders including Jekyll Island Club members George F. Baker, president of the First National Bank, and James Stillman, president of National City Bank, met with financier J. Pierpont Morgan and began examining the assets of the troubled institutions. A decision was made to offer loans to any of the banks that were solvent. The secretary of the treasury George B. Cortelyou was eager to divert the situation and offered the New York bankers use of government funds to help prevent an economic disaster. President Theodore Roosevelt, while the panic of 1907 transpired, was on a hunting trip in Louisiana.

Ron Chernow in his book The Death of the Banker offers this account of the 1907 Panic, "In the following days, acting like a one-man Federal Reserve system, [J. Pierpont] Morgan decided which firms would fail and which survive. Through a non stop flurry of meetings, he organized rescues of banks and trust companies, averted a shutdown of the New York Stock Exchange, and engineered a financial bailout of New York City." In the end, the panic was blocked and several young bankers including Henry P. Davison and Benjamin Strong Jr. were recognized for their work organizing personnel and determining the liquidity of the banks involved in the crises. In 1908 J. Pierpont Morgan asked Henry P. Davison to become a partner in his firm J. P. Morgan & Co. and in 1914 Benjamin Strong Jr. was selected to be the first president of the Federal Reserve Bank of New York.