Is the Federal Reserve a necessary institution or a scam to use fiat money to surreptitiously take wealth from Americans for the benefit of the elite?

[Kelley1]

Updates

5 mo

100% of countries and central banks that use fiat currency and have the authority to print or create have increased the supply (that is, they have counterfeited), causing the value to drop and eventually go to zero. In all of recorded human history, there is not a single exception. The US started with the Continental money. It went to zero. Hence the expression. Not worth a continental. If you love Central banks and fiat currency, you love losing value in your money.

[worldscolide]

Fun fact, the fed isn't linked to any government agency, it's not part of any of the branches of government and not answerable to any branch.

It was created when a shit ton of American banks went tits up. It was created in secret, and is the reason we aren't on the gold standard any more. It's evil.

[Kaneki05]

Elites run the world through banks alike so yeah a scam

[abc3643]

That's obviously a bunch of horseshit. If that was so, there would never be any economic crises whatsoever anywhere.

[Kaneki05]

So... you don't know who economic crises benefit do you?

[abc3643]

Son... *sigh*... I don't want to insult you, but... you are way too young to have mastered human nature. I am not saying you are stupid, but you have the hubris of a young man who believes he knows more than he actually does. Shortly before you were born, psychologists established the Dunning-Kruger Effect. You may know what that is and that wouldn't surprise me. But, there's an old adage that goes back even to biblical times which is sage advice in light of the Dunning-Kruger Effect:
The fool is always trying to prove he is right, while the wise man wonders where he may be wrong.
and
It is better to keep your mouth shut and people think you are an idiot than to for you to open your mouth and remove all their doubts.

With these in mind, reassess your original assertion. When you have sufficient understanding of human nature, certain things will become self-evident that you will realize that assertion is not well thought out.

Good luck and I don't mean that sarcastically.

[Kaneki05]

@abc3643 It has nothing to do with human nature, it's simply those with a lot of money can soak up assets and get richer during those times.
But hey since I know you like Ai from your own opinion on here and probably need to understand here ya go 'Yes, evidence suggests that economic elites often benefit from economic crises, a phenomenon frequently described as "the rich getting richer in a recession". While economic downturns cause widespread job losses and financial hardship for the general population, they provide opportunities for the wealthy to consolidate power and accumulate assets at discounted prices.'
What a surprise it knew what I already knew. Because it's common sense don't take a genius.

But no I am sure your pointless rant about hubris makes me look more foolish than you here.
Maybe take you should take one own's advice, as all you did was come across as someone who abides by 'older and wiser' you know what a fallacy is right? Of course you do and yet...

[abc3643]

It's an obviously necessary organization. Anyone who knows the economic history of the United States AND understands the realities of human nature (which takes decades to being to master) understand this.

In short, the Federal Reserve helps depoliticize economic policy and stabilize economic policy. If you think about it, I believe the term is an epistocracy - rule by the knowledgeable. The Federal Reserve is limited in scope, but Congress was sufficiently intelligent in 1913 to realize that economics is a serious enough issue and that politics and ignorant policies can create economic problems, so they created the Federal Reserve.

I'll let Google Gemini explain:

PROMPT:

Why was the Federal Reserve created?

RESPONSE:

The creation of the Federal Reserve in 1913 was the culmination of decades of economic volatility and a direct response to a series of financial crises that crippled the United States during the 19th and early 20th centuries.

Before the Federal Reserve Act, the American banking system lacked a central coordinating body, leading to frequent "bank runs" and "panics" where depositors would rush to withdraw their funds, often causing healthy banks to fail due to a lack of immediate liquidity.

The Catalyst: The Panic of 1907
The immediate impetus for the Fed’s creation was the Panic of 1907. This crisis began with a failed attempt to corner the stock of the United Copper Company, which led to the collapse of several major New York banks and trust companies.

• Absence of a Central Bank: At the time, the U. S. had no "lender of last resort." The crisis was only halted when financier J. P. Morgan personally intervened, organizing a syndicate of wealthy bankers to provide liquidity to the failing institutions.
• The Realization: This event convinced both the public and political leaders that the national economy was too large and complex to rely on the private interventions of a few wealthy individuals.

Structural Goals of the 1913 Act
The Federal Reserve Act, signed by President Woodrow Wilson, sought to address three fundamental weaknesses in the American economy:

• Inelasticity of the Currency: Under the previous National Banking System, the money supply was tied to the amount of government bonds held by banks. This made it difficult for the supply of money to expand or contract based on seasonal demand (such as during the autumn harvest). The Fed was designed to create an "elastic" currency.
• Pyramiding of Reserves: Smaller rural banks often kept their reserves in larger city banks. When rural banks needed cash to pay farmers, they withdrew it from city banks, which in turn caused liquidity crunches in the cities. The Fed created a system of regional reserve banks to centralize and stabilize these funds.
• Lender of Last Resort: The system was designed to provide a "discount window" where banks could borrow funds during emergencies, preventing a temporary shortage of cash from turning into a full-scale systemic collapse.

The Compromise: A Decentralized Central Bank
Because Americans historically distrusted centralized power and "money interests" in New York, the Federal Reserve was structured as a unique hybrid of public and private interests.

• The Board of Governors: A federal government agency in Washington, D. C., that provides oversight.
• The 12 Regional Banks: These represent the private and regional interests of the country, ensuring that the entire nation—not just the East Coast—has a voice in monetary policy.

The "Dual Mandate"
While the original focus was on preventing panics and managing the currency, the Fed’s role evolved significantly. In 1977, Congress formally established the Dual Mandate, requiring the Fed to pursue two often-competing goals:

• Maximum Employment: Promoting conditions that support high levels of job creation.
• Stable Prices: Controlling inflation to preserve the purchasing power of the U. S. dollar.

=========

So, there are very good reasons why the Federal Reserve was created. It's an important institution which, for the most part, helped keep America economically healthy for over 100 years.

If you don't understand this, remember this adage which, all too often, many do not:

If you fail to learn from history, then you are doomed to repeat it.

Unfortunately, many of us who did learn from history have to suffer because we live with those who have not and thus make bad decisions like electing would-be dictators.

[slatyb]

Great response!

[ohsheeT]

Well , this is a very good question , because now , in the eighties , the nineties , and now the two thousands

The message has been, there is no gold in there. Either the countries came back and picked it up if they had golden there or America stole it from them.\nAnd they're never getting it back or they made some kind of payment plan

But I mean, if you look at everything, Biden did and all the presidents before him, and how many billions and trillions of dollars are just giving away to different countries, different organisms and it's usually the organizations that help on politicians. Re elections or a buddy

You know , like the congressman that had a buddy who sold nuts and bolts , and the u s bot fifty something million dollars of nuts and bolts.

And they could have went to home depot or ace hardware in bought ten thousand dollars worth of nuts and bolts for the same price as fifty something million. I guarantee you fifteen out of every sixteen things that we are giving money to it is just like that

[ohsheeT]

Well if we the little people don't stop with the government is trying to do right now by opening up their own bank and everybody in america uses it , then they are in full control of our money , and they don't have to give it back to us

When you go.\nTo the grocery store, look at everything you buy and see who made it. It's all being transported from other countries fruits, vegetables, meat, you name it. It's coming from other countries because the u s government has stopped everybody from making everything just about except for the rich corporations and once they get our money in their bank , then they tell the people from other countries , they can't send any more products produce anything and then the government tells us all our distributors have quit sending America their food. So now we have no food , and we have no money

[slatyb]

Absolutely necessary. It prevents lenders (the wealthy) from draining the resources of borrowers -- for example, people paying a mortgage. Here´s how it works:

Suppose there only 50 people and there is $100,000 in gold notes in circulation , backed by gold in a vault. Every year say there are 10000 bushels of wheat grown and they sell for $1/bushel. But the population is growing. Someone borrows $500 to buy a wheat farm, paying $50/year, or 50 bushels of wheat. The population increases to 100 people, but there are still only $100,000 in circulation. Instead of 1000 bushels of wheat, there are 2000 bushels of wheat each year. The price of wheat drops to 50c/bushel. This is deflation, the inevitable result of a fixed money supply in a growing economy. Now instead of 50 bushels of wheat per year, the farmer now has to sell 100 bushels of wheat to pay their mortgage. See the problem? Deflation is ruinous to borrowers -- the poor people,. A fixed money supply benefits those who have money, and hurts debtors.

[Sevenpointfive]

i was watching some clips from jewish groups explaining things. this head guy was saying some awful things about americans and basically admitting to everything we all know. it was disgusting and went on with my day. and then throughout my day i found out this guy's son was just appointed to the reserve board. i get that the reserve is separate from the government. the guy was admitting to exchanging fiat for gold for years! and that's how the reserve was kind of born.

it has nothing to do with the us govt. system. i really don't even know what it does. lower interest rates? how does this institution lower interest rates for america? we know who runs the institution.

[DryGermanGuy]

So strange that you couldn’t be bothered to link to all these awful, disgusting clips, is it.

[Sevenpointfive]

@DryGermanGuy it's not strange. why, so you can have it taken down? nice try.

[DryGermanGuy]

Yeah, so you already know how pathetic your attempt to peddle antisemitic conspiracy content is. „Nice try“ indeed.

[Sevenpointfive]

@DryGermanGuy just go look it up so you don't sound stupid. ron lauder, the president of the world jewish congress' son in law is kevin warsh, the newly appointed fed chair. ron is just like every other jew. now, go watch him speak and stop acting like anyone has any obligations to the jewish people. if jews have such a problem living in our country, then they need to go to israel.

[NaultD]

The fact we have crypto currency basically a fiat currency without government backing show the worth federal reserve. The US dollar isn't jumping around like the bitcoin or doge coin. There's value in that alone even being fiat that the feds creates by existing.

What came first the chicken or the egg? Neither and both simultaneously is realistically the answer for our robust economy. It's feeding people making the globe a better place don't ask TOO many questions and it will do better and better. The only question for who's benefit? My self as a socialist you already know the answer.

[Quigly]

A centralized economy is what Communism is all about. This is the only purpose in the federal reserve. To centralize the economy and put wealth in the hands of the few.

They will say the Federal Reserve was created when the banks became insolvent and it was to prevent the same thing from happening again. If it solved the problem the banks wouldn't have gone bankrupt again in 2008.

The federal Reserves job is to control inflation to prevent bubbles in the economy. They routinely fail at their job calling inflation growth or transitory instead. Then they try to prevent the economy from correcting itself after the bubble has been created Which only prolongs the suffering and happens anyway. It's the exact opposite of doing their job.

[MrChinaski]

Money is just a record of past transactions. You can do that in fiat money, gold, blockchain entries, cigarettes (ask POWs how camp black markets ran), salt, seashells, heads of cattle, carvings on cave walls. Whatever. Or you can give up entirely and resort to barter... searching for someone that might trade you an iphone if you just gather enough eggs from your laying hens in your backyard.

Fiat money has some other useful qualities... e. g. alternatives like bitcoin are a lousy store of value because their worth swings wildly and lousy as a medium of exchange because of high transaction costs...

... but your main grievance appears to be about the history of past transactions that has occurred, rather than being about the way in which these transactions are recorded.

[Zack-Bann]

As opposed to what is the question.


Banking systems are pure evil and they do hold influence


But if they disappeared overnight someone will take their place


The fact is: all money is an illusion.
If banks disappeared we would have a total economic collapse an go back to barter and trade like the cavemen did (also kill eachother even more obviously)

[AviatorTom]

We can thank Alexander Hamilton for establishing a national Bank, that legally became the Federal Reserve System under Woodrow Wilson, an organization that monitors and controls the nation's money supply, independent from the Federal government.

Every country has some organization that monitors the nation's money. In the US, that's the Federal Reserve.

It's a useful and necessary part of the overall economic system.

[888theGreat]

Well they should wait to react instead of predicting what is going to happen. Also they try to hard to control markets. Actually , they cause more problems than fix. We need something different.

[lightbulb27]

Its a scam you have to live with until the system fails again.

there's a reason it was not written into the constitution and GOLD was.

[DryGermanGuy]

Every first world nation needs an independent central bank. Your fleecings and tax scams, taking money from the poor to give it to the rich, are committed by congress.

[CuriousMufuxka]

Yeah, try taking the wealth I hold in my home. Meet my little buddy Louisville Slugger. Time to reserve some spots at the hospital.

[Surely]

Most of the things that I have read about the Feds. Say that only a few people benefited from them. They can print money at cost and loan it out for face value with interest.

[beefcakebradybatson]

More righty BS!!! SWWWWWWWWWWWWWWWWWWWWWWEEEEEEEEEEEEEEEEEEEEETTTTTTTTTTTTTTTTTTTTTTTT!!!

[Snakeyes7]

The latter. It has done nothing but print the dollar into oblivion.

[jamesgoldman]

Scam, taxation is theft

[slatyb]

Have you looked at the lovely spots where there is no taxation and no government? Maybe you should move to one of them.

[jamesgoldman]

I live in an uber highly taxed dictatorship and moving is unaffordable for us prisoners

[NathanDavis]

the USA would be nothing much... without it

[Kelly6]

@Kelley1 Scam

[Mike_Hum]

Scam.

[In_Trance]

Scam

[Ben9500]

Scam