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Originally Posted by tabs
I will disagree on the 1913 perception. Certainly since 2008.
The USA needed the insurance of a Federal Reserve to become the largest and most important economy in the world. Other wise the US would have been left to the vagaries of the economic fates. That would simply not do as it would not inspire confidence. For an up an comer as was the USA during the 19Th century it would do.
Also during most of the 20Th century that insurance policy was not called on to any great extent. Only after 08 was it called into the breech and then it saved our bacon. So the FED gets a pass from me. Somebody has to be the adult in the room.
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The Federal Reserve violated its founding directives to only purchase corporate bonds to support the economy when the U.S. entered WW I and bought war bonds. That began the slide that was further eviscerated by Roosevelt eliminating different regional Fed interest rates in favor of a single rate to more effectively buy war bonds to support WW II.
We could go on all day with the things they have done to debase the currency system. When the left hand lends to the right hand, it's only fraud if a higher authority says so. As long as they write the rules unchecked and people believe it is all good - life goes on as usual. The basis of credit is man's faith in his fellow man. It all boils down to faith. Quite simple until the Emperor has no clothes .....
But they were brilliant by lending trillions of dollars to foreign entities and countries insuring future demand of dollars plus needed interest. (Tip for the kids - never borrow in a foreign currency as the lender is setting you up to be a debt slave. The exchange rate goes against you and then you owe even more plus turbo charged interest on top).