Now we know that excessive Federal Climate Change Hoax Spending caused the global inflation with a $3.2 trillion spending bomb that took Federal Spending from $4 trillion a year to $6 trillion a year.
The Federal Reserve needs to take a course in Austrian Free Market Economics. All US Economics courses are based on Fabian Socialist Government Managed Economics. The Fed is now trying to avoid increases in US Unemployment and are attempting to shorten the downturn that is ahead. They will likely lower the Fed Funds Rate to attempt a soft landing.
The US Private Sector retains its Free-Market Economics it developed beginning as Colonies in the 1600s. The Constitution gave Congress the power to “coin money” to get away from the paper money each Colony could print. It was like trying to cure a virus with a cough drop. Free Market Economics allows prices to be set by the consumers based on Supply and Demand.
Before the Constitution was written, many states printed their own money, which was one of the financial problems facing the nation's founders. In 1793, the US began coining its own money. Coins with precise amounts of gold and silver were a common medium of exchange.
The history of Bank Failures in the 1800s
The Panic of 1819 led to: Widespread bankruptcies, Mass unemployment, Foreclosure of mortgages, Popular resentment against banking and business, A belief that federal government economic policy was flawed.
Panic of 1837: This crisis led to a recession that lasted until the mid-1840s. 343 out of 850 banks closed, 62 partially failed, and many state banks were stressed. Some of the causes of this panic were speculative lending, a decline in cotton prices, and a land price bubble.
Panic of 1857: This recession led to bank failures in the United States.
Panic of 1873: This recession led to bank failures in the United States and was followed by a 4-year depression.
Panic of 1884: This panic had a more limited impact, starting with a few financial firms in New York City.
Panic of 1893: Roughly 575 banks failed or temporarily suspended operations during this panic.
Some other issues that affected banking in the early 1800s included: Currency exchange: Many banks had trouble converting bank notes into coin because they didn't have the necessary reserves.
In 1913, the US Congress created the Federal Reserve System and Congress delegated its power to “coin money” to the Federal Reserve. This did not end the plague of Bank Failures. Money Printing has created cumulative inflation since 1913 when the price of a loaf of bread was 2 cents. In 1916, the 16th Amendment was ratified and established the US Income Tax System and the creation of the Federal Reserve.
In 1929, the Stock Market Crashed causing the Great Depression that lasted through the 1930s. US Unemployment rose to 25%. Families lost their farms in the “dust bowl” when Banks foreclosed on their properties. The reason this lasted so long was due to the absence of liquidity in the Banks.
Bank panics in 1930 and 1931 were regional in nature, but the financial crisis spread throughout the entire nation starting in the fall of 1931.
Since the establishment of the FDIC in 1934, there have been 3,516 bank failures in the United States. Most of them are small banks and go largely unnoticed, except if you happen to have deposits at that institution.
In the 1970s, the bill for Johnson’s Vietnam War and Federal Welfare came due along with high oil prices and cumulative inflation doubled prices of cars, college and healthcare.
In 2008, The Great Recession was caused by banks giving mortgage loans to unqualified buyers rather than face Race Discrimination Law Suits.
In 2021, the current cumulative inflation has reached 35%.
The following is a “time capsule” and a Biblical Satire.
Pass the Gas by Norb Leahy, Kansas Business News June 1981
In the beginning the House and Senate created the 16th Amendment, giving themselves the power to tax Income. That was 1913, the year the Federal Reserve was created to increase the money supply and cause inflation. And the House and the Senate looked at each other and said: “Let’s try it”. No more did they have to tax the people of the land. They could print all the money they wanted. And it was good. Then in 1929 a great indigestion befell the land and there was great wailing. But the young Federal Reserve had been naughty, had fed gaseous dollars to the economy and was sent to its room. Being a obedient child it played not with its printing press that causeth the plague to worsen. It blamed the plage on the merchants and purveyors of goods. And the House and Senate said: “That was good!”.
And behold a Great King came upon the land who was called Frankiln. And kings from other lands came and bowed down before Franklin to beseech him to deliver them from the infidels. And he did, because there was nothing for the people to do in the land. And he beconed the Federal Reserve to increase and multiply the Federal Reserve notes so that the people would see that he was king. And, so it was. And he took unto himself as wife, Eleanor and they begat the Harvard class of 1941.
It soon came to pass that prices increased and a great uneasiness consumed the people. And the said: “How can this be?” And the king said “It is the merchants who are causing inflation. Chastise them. And so they did. And if someone would ask if printing too much money had something to do with inflation the king would say:”Fool, it’s far more complex than that.” And they believed. And for 20 years it was a time of plenty. The wealthy merchants were chastised and bowed down before the king.
And ther came upon the land another great king, a disciple of Franklin’s named Lyndon. And Lyndon created many laws to chastise the merchants and lent his armies to those who asked for he was benevolent. And the printing press rolled and once again the Federal Reserve fed gaseous dollars to the economy, but no indigestion befell the land. For the rulers of the land had learned that if they continue to increase the money supply, indigestion could be postponed. And so they did.
And so it came to pass in the rule of Jimmy I that a great cry came out from the people of the land in their bondage. And they banished him to end the 40 years of spending began by Franklin And the people raised up a champion who knew economics and they called him Ronald.
A great cry came from the House and Senate beseeching Ronald not to kill the sacred cows. And Ronald heard them not for he turned off the printing press that caused the Federal Reserve to feed the gaseous dollars to the economy. And it is foretold that in the years to come a great belch will be heard throughout the land as the economy grows strong enough to pass the gaseous dollars fed to it by the late great Lyndon.
Norb Leahy, Dunwoody GA Tea Party Leader
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