JOG
Serious Thumper
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Longview, Texas
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Excerpt from an article
The Federal Reserve—doubling the money supply during WWI (1914-1919) and creating a boom-bust cycle in the depression of 1920-1921—gladly financed US involvement and entry into World War I. This likely would not have been supported by the American people through taxation, but taxation through inflation—perpetrated by a central bank—conceals the costs of government activities. World War I would simultaneously strengthen the power and centralization of the Fed and the federal government power in general. Wars and central bank inflationism are mutually reinforcing. As summarized by Willis, Theory and Practice of Central Banking, and cited in Rothbard’s Progressive Era,
It was the entry of the United States into the World War that finally cast a decisive vote in favor of a still further degree of high centralization; and that practically guaranteed some measure of fulfillment for the ambitions that had centered around the Federal Reserve Bank of New York…
While the Fed enabled US entry into World War I, and World War I enabled major centralization of American society, the Fed also was the means through which wealth from the war was transferred to US bankers. Wall Street banks and Morgan greatly benefited from the war, acting as financier and mart for war materials for the Allies. John Moody, in his The Masters of Capital (1919), also cited in The Creature from Jekyll Island, explains,
Thus the war had given Wall Street an entirely new role. Hitherto it has been exclusively the headquarters of finance; now it became the greatest
mart the world had ever known. In addition to selling stocks and bonds, financing railroads, and performing the other tasks of a great banking center, Wall Street began to deal in shells, cannon, submarines, blankets, clothing, shoes, canned meats, wheat, and the thousands of other articles needed for the prosecution of a great war.
We've been raised seeing the Federal Reserve as just part of the reality of being Americans. That doesn't mean it is supposed to exist. It's the third central bank. Patriots and the American people killed the first two. The end of the fed would be good.
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