Why Do We Need The Federal Reserve Banking System Corporation?

The Federal Reserve Banking System was created in 1913 on Jekyll Island by persons unknown, as a corporation to print United States currency backed with nothing, to lend to us for interest.



For those who support having a secret, private corporation printing money to lend to us, thereby guaranteeing inflation, can you explain what the benefits are of this fiat money?Why Do We Need The Federal Reserve Banking System Corporation?
So they can extort money from us.
If the Federal Reserve as the instructor in the passenger seat, then we need to grow up and learn how to drive on our own.

Report Abuse

Why Do We Need The Federal Reserve Banking System Corporation?
First, the meeting on Jekyll Island occurred in 1910. Second, it resulted in the Aldrich plan which was ultimately rejected by Congress. Only portions of the Aldrich plan were included in the Glass-Owen bill which was eventually passed by Congress in 1913.



Currency is not loaned to us at interest. If it were, it would be AN ASSET of the Federal Reserve. Instead, Federal Reserve Notes are LIABILITIES of the Federal Reserve System. You obviously do not understand how monetary systems work and there is not enough space available here to explain it to you.



The Federal Reserve System exists because free market banking cannot react to economic turmoil as quickly and cannot smooth the normal ups and downs of an industrialized economy. A person only needs to learn about 19th century economics to see the problems caused when the country did not have a central bank. There were more economic upheavals (and they tended to last longer) in the time period between 1814 and 1910 than there have been between 1914 and 2010. Read about the various banking panics, depressions and recessions of the mid to late 19th century and the early 20th century in order to learn more about why the Federal Reserve was created. BTW, read the history from economic and banking textbooks and not the conspiracy theory nonsense sources that you have obviously been reading.
I agree with Socrates.



No real user would come to the defense of the Federal Reserve. There are only 2 kinds of people when it comes to this issue: those who are strongly opposed to the Fed, and those who just have no clue what it is.



Those who spread talking points and outdated counter-arguments in its defense are probably paid to do so.
Think of the Federal Reserve as the instructor in the passenger seat with a student driver behind the wheel. The purpose of the instructor is not to involve herself in the minor corrections of throttling, braking, or steering but rather to maintain a constant presence for the moment when immediate and forceful intervention is needed to stave off disaster.
I answered a similar question last week, perhaps my long-winded answer will help:



http://answers.yahoo.com/question/index;鈥?/a>



I find it very interesting that ALL of the defense of the Federal Reserve on this website is coming from just a handful of accounts, all of which appear on my blocked-users list as potential trolls.
It is the pretend place. The Washington spenders can pretend the money is there to spend, so the Fed Reserve enables that dysfunctional behavior.



.
Because without it the government would have to operate on a CASH basis.

THEN the politicians could NOT steal as much.
To manage our monetary supply.
we don't