Thread: Question about the role of banks/Central Banks

I was on a thread with michaelr, when he suggested rather planely to me, that the central bank of the united states lends money to the government, which in turn allows it to borrow more from the central bank. It is then of course, the central bank that established stuff like the IMF, or at least they're in cahoots, and as such its mostly the central bank that is responsible for the financial collapse.

The would of course tend to show that much of American politics has been dictated and moved along by the central bank.

Thus, I have a poll question:
For how many years has politics been dictated by the central bank?

Originally Posted by The_Bear

Thus, I have a poll question:
For how many years has politics been dictated by the central bank?

Ever since the Fed was put into power in 1913 right before Christmas break for Congress.

"Permit me to issue and control the money of a nation, and I care not who makes its laws."

Mayer Amschel Rothschild, International Banker

Since about 1913

then what differs the federal reserve from the national banks?

They directly create currency by buying government bonds. They also determine the discount rate by which other banks/institutions can borrow money from them, which in turn sets the interest rate for everyone.

There is a lot of mythology about the Fed. The major stockholders such as the Morgans, Rockerfellers and Mellons needed a mask and that mask is the Fed. The frontmen for banking is always either some minority: Jews, Parsi or overseas Chinese; or a government debt scheme. Combining these two techniques as with the Mississippi scheme/South Sea bubble does produce financial fireworks. Scotsmen still have problems getting prominent banking jobs three centuries later.

The problems include:
banks, money and other terms used in the banking industry cannot be defined within acceptable limits of error because the risk reward trade off forces lending into into the undefined areas.
The assumption that economic bad times should be avoided. While possible the proposition should read do you want selection to be more or less lethal? Less means you are in favor of economic instability.