Armstrong Economics Blog/Central Banks Re-Posted Nov 15, 2021 by Martin Armstrong
Every now and again I get those stupid hate emails to blame the federal reserve and central banks for everything while NEVER once do they ever look at the history of central banks and how Congress has been manipulating the law changing the definition of what the Fed was even supposed to be.
There do not even know why there are branches of the Fed. If there was just one interest rate and one policy set in Washington, then why do we even have branches of the Fed if they no longer act independently? For you see, when the Fed was created, the branches were to manage the capital flows. Each branch was independent and they would lower or raise the interest rate in their jurisdiction depend ding on the flow of money.
Even the currency it first began to print was done so by each branch. The Panic of 1907 was instigated by the San Francisco earthquake of 1906 which caused the capital to flow from East to West and that created a shortage of cash in New York and thus banks failed.
It was Roosevelt who usurped all the independence of the Fed and created a Washington monopoly to push his socialist agenda into place. We are hearing the same pitch of equality once again and Biden is going to take over the Fed and install his people. This will be the final alteration of the Fed making it entirely political to usher in this Great Reset. What was once an independent central bank, owned by the bankers to prevent taxpayer money from being used to bail out the banks where today they banks may own the Fed in name only, but the reins of power are political.
Today, Biden will stuff the Fed and it will do the bidding of the global agenda. The Fed has the power to create elastic money and it will return to that because Biden will need that as private capital flees government debt on a global level.