The Truth of American Politics

Chapter 2 The Federal Reserve

The real problem in the United States in the Federal Reserve. The Federal Reserve is America's National bank. In America's history up until 1913 we had no Federal Reserve. The Federal reserve was secretly created by a gang of rich bankers, only interested is growing their own wealth, which automatically deems a red flag. The goal given (what I like to call a bunch of malarkey) for the federal reserve was to create financial stability by setting interest rates, ensuring steady inflation (the devaluation of a currency), and to manage the money supply (the amount of money in circulation in the economy). This is known as monetary policy, and this is the biggest flaw in America today. The Federal reserve has not created any stability what's so ever. In fact, prices have been rising ever since its creation. The truth is no group of people can determine interest rates. This is mathematically impossible. Only the free market can determine interest rates. Throughout history gold was used as currency. Money had to be backed by gold. In the mid 1900's the United States was taken off the gold standard, which was a crucial mistake in American history. This means that the federal reserve could print as much money as it possibly wanted, and it is backed by nothing. Therefore ever since then the dollar has just been paper. The dollar technically has no value. It only holds value because people have come to believe it holds value, but this can not last forever.