It's time for a paradigm shift in your perceptions around money. It's a powerful story, this tale of how our money came to be worthless. It may take you a few days to digest this information and to understand the true consequences of what has
happened.
Read this entire chapter as often as you need. Do not read further until you have grasped the concept of what has happened to your money.
18 - Chapter 2 - Forget What You Think You Know Now – The New Rules of Money
The Silver Fortune Formula - How to Make Extraordinary Profits from the Silver Bull Market 1931 – The Birth of the Fed and Beginning of the End
It may come as a surprise to you to learn that the Federal Reserve is not the
original Central Bank of the United States. In fact, it is really the third Central Bank in the history of the U.S. The First Bank of the United States existed from 1791 to 1811. The Second Bank of the United States had a similar 20 year reign
from 1816 to 1836.
Both banks engaged in commercial loans, took in deposits, issued currency, and
bought securities. The two banks also contained a number of regional branches and performed fiscal agent duties on behalf of the United States Treasury. The biggest difference between these first two central banks and the Federal Reserve Bank lay in the fact that these other two central banks were 80 percent privately held, with stockholders voting for 80 percent of the banks’ directors.
As a result of a long standing series of financial panics and economic instabilities that culminated in the financial panic of 1907, the United States looked into
creating a more stable Central Bank in the years of 1912 to 1913. There was much opposition and great debate within Congress, but the Federal Reserve Act at last passed just before the Christmas recess in 1913.
A system of twelve regional banks had been enacted in order to spread the
authority of the Central Bank out between the East coast and the rest of the
country. Despite this, the New York Fed became the first among equals in the new system. It maintains several privileges to this day, including engaging in open
market operations as instructed by the Federal Reserve Open Market Committee.
The rise of the Federal Reserve Bank to prominence began almost immediately
after its starting operations in 1915. Its first major accomplishment lay in its function in a critical role as financier of both the American and the Allied war efforts in the First World War. From this humble beginning, the Federal Reserve
has only risen to greater prominence and importance in the U.S. economy and
eventually that of the world.
19 - Chapter 2 - Forget What You Think You Know Now – The New Rules of Money
The Silver Fortune Formula - How to Make Extraordinary Profits from the Silver Bull Market The Federal Reserve began acquiring greater powers in the depths of the Great
Depression. They began setting interest rates for the nation in an effort to influence economic growth and intervene in the severity of economic downturns.
This power was never relinquished, and is one that they maintain and use