Archive for September 2014

MONETARY HISTORY CALENDAR August 20 – 24

09/04/2014

AUGUST 20

1935 – BIRTH OF RON PAUL, FORMER US CONGRESSMAN
Referring to the Federal Reserve, he stated, “maybe there’s too much power in the hands of those who control monetary policy?  The power to create the financial bubbles.  The power to maybe bring the bubble about.  The power to change the value of the stock market within minutes.  That to me is just an ominous power and challenges the whole concept of freedom and liberty and sound money.”

AUGUST 21

1824 –  DEATH OF JOHN TAYLOR OF CAROLINE, US SENATOR OF VIRGINIA IN THE 19TH CENTURY
“As we all know that a regular influx of wealth, from a majority to a minority, is a regular influx of power, the United States ought to estimate the quantity of each, they are pouring into a banking interest. If no new banks should be created afer 1808, nor the acquisition of the old increased, the five millions annually collected by the existing banks, at compound interest carry from the public to the corporations, in twenty years, above one hundred and eighty-four millions of dollars. Here is already a vast current of money and power running one way…”

AUGUST 23

1935 – PASSAGE OF BANKING ACT
The law made the FDIC a permanent agency and raised the deposit insurance level to $5,000.
The Federal Reserve System was reformed with the transformation of the Federal Reserve Board of Directors to the Board of Governors. All board members were appointed by the President with the advice and consent of the Senate and the term of service was expanded to 14 years. Open-market operations were formalized in the Federal Open Market Committee and the Governors were allowed to determine interest rates and bank reserve requirements. These “reforms,” however, were window dressing. The power and authority to issue money as debt was retained in the hands of the private Federal Reserve and private banking corporations. Keeping reserve requirement decisions in the hands of the Fed only invited speculation and risk (reserve requirements are the ratio of money banks lend in excess of money they actually possess “in reserve” to cover loans. Banks loan many times the amount of funds in their reserve).

AUGUST 24

1916 – BIRTH OF ROBERT DE FREMERY, AUTHOR, RIGHTS VS PRIVILEGES
“It is not obvious that there are serious defects in our banking system and our tax system that deprive most of us of fundamental rights and bestow enormous privileges on others? How many riots must we endure?  How many prisons must we build?  How many of our rights must we lose?  How many of our young people must be sent away to fight in foreign wars before we decide that enough is enough?”

1922 – BIRTH OF HOWARD ZINN, AUTHOR, PEOPLE’S HISTORY OF THE UNITED STATES
In response to the announcement that the Obama administration was going to give billions of tax dollars to the financial industry, he said:
“They’re really dedicated to keeping the financial system, which doesn’t mean us, doesn’t mean the people; it means the bankers, the banking industry, the lenders, the insurance companies keeping them afloat by giving them hundreds and hundreds of billions of dollars. Now, it’s amusing to me to see that suddenly, in this past week or so, there’s been this flurry of anger about the fact that some of these companies that have been given hundreds of billions of dollars are giving out several hundred millions in bonuses. And Obama has I think very cleverly joined the indignation against the bonuses. But, after all, these hundreds of millions of dollars in bonuses come out of the hundreds of billions that have been given to these financial institutions. So instead of pointing to that, to this huge bailout, Obama and other people and this goes for the press too, the media — the media have seized upon it, television, newspapers all indignant and congressmen all indignant about the hundreds of millions of bonuses. Well, what about the hundreds of billions, leading up to trillions, really, given to the banks?”

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