Friday, March 27, 2020
“The Bond Bubble Pops”: This Is Why The Fed Bailed Out The Bond Market
The Next Financial Crisis: A Collapse of The Mortgage System
Politico by Katy O’Donnel 3/27/2020
Helicopter Money for Wall Street
Wolf Street by Wolf Richter 3/26/2020
Bitcoin Fares Well Against Fiat Currencies, but It’s in a Class of Its Own
CoinTelegraph by Shiraz Jagati 3/26/2020
This Is Not a Financial Crisis, So Why Should We Bailout Wall Street (Again)?
ProMarket on March 25, 2020 by Matt Stoller
Unsanitized: Bailouts, A Tradition Unlike Any Other
The American Prospect by David Daven March 25, 2020
A Deep Dollar Crisis Is Looming And Coronavirus Pandemic Cannot Be Blamed For It
Money control by Tanvi Ratna 3/24/2020
The Federal Reserve Is Expanding Its Asset Purchases To Include Municipal Bonds
CNBC by Jeff Cox 3/20/2020
Banks Shut Down in Venezuela – P2P Bitcoin Trading Surges
BlockchainNews By Richard Kastelein 3/19/2020
The Federal Reserve Dictatorship Runs Amok Against Savers
CommonDreams by Ralph Nader 3/18/2020
Financial Crisis Fears: EU’s Eurozone ‘polluting’ World With ‘collateral risk’ Says Expert
ExpressUK by Ciaran McGrath 3/15/2020
A New Hurt in Italy From the Coronavirus: A Banking Crisis
The New York Times by Peter Goodman 3/18/2020
The Fed Has Pumped $9 Trillion into Wall Street Over the Past Six Months, But Mnuchin Says “This Isn’t Like the Financial Crisis”
Wall Street On Parade Pam Martens and Russ Martens: March 14, 2020
Interview with David Stockman – 1,000 Point Dow Intraday Swings Is A Warning The Fantasy Of The Last Few Decades Is Finally Coming To An End
King World News 3/7/2020
Bertie Charles Forbes
Picture a party of the nation’s greatest bankers stealing out of New York on a private railroad car under the cover of darkness stealthily hieing hundreds of miles South, embarking on a mysterious launch, sneaking on to an island deserted by all but a few servants, living there a full week under such rigid secrecy that the names of not one of them was mentioned lest the servants learn the identity and disclose to the world this strangest, and most secret expedition in the history of American finance.
I am not romancing. I am giving to the world, for the first time, the real story of how the famous Aldrich currency report, the foundation of our new currency, was written.
Bertie Charles Forbes (1880-1954)
Financial journalist, author, founder Forbes Magazine
“Men Who Are Making America,” Leslie’s Weekly, October 19, 1916, p. 423
The Aldrich currency report that is mentioned in the above quote was designed by Senator Aldrich and the men who accompanied him to Jekyll Island, Georgia. It was the Aldrich currency report that formed the basis of the Federal Reserve Act. The seven people who had a seat at the table when the Aldrich currency report was written were:
Senator Nelson W. Aldrich – U.S. Senator
Henry P. Davison – senior partner J.P. Morgan
Frank A. Vanderlip – president of National City Bank of New York
Charles D. Norton – president of J.P. Morgan’s First National Bank of New York
Benjamin Strong – of J.P. Morgan’s Bankers Trust Company
Abraham Piatt Andrew – Assistant Secretary of the U.S. Treasury
Paul M. Warburg – partner in Kuhn, Loeb & Company
Years later Frank Vanderlip wrote about his trip to Jekyll Island with Senator Aldrich.
Frank A. Vanderlip
Once aboard the private car we began to observe the taboo that had been fixed on last names. We addressed one another as “Ben,” “Paul,” “Nelson,” ”Abe” – it is Abraham Piat Andrew. Davison and I adopted even deeper disguises, abandoning our first names. On the theory that we were always right, he became Wilbur and I became Orville, after those two aviation pioneers, the Wright brothers. Incidentally, for years afterward Davison and I continued the practice, in communications, and when we were together.
The servants and train crew may have known the identities of one or two of us, but they did not know all, and it was the names of all printed together that would have made our mysterious journey significant in Washington, in Wall Street, even in London. Discovery, we knew, simply must not happen, or else all our time and effort would be wasted. If it were to be exposed publicly that our particular group had got together and written a banking bill, that bill would have no chance whatever of passage by Congress.
Paul M. Warburg
Though eighteen years have gone by, I do not feel free to give a description of this most interesting conference which Senator Aldrich pledged all participants to secrecy.
— The Federal Reserve System: Its Origin and Growth (New York: MacMillen, 1930), Vol. I, pg. 58
The Founders of this Country, and a large majority of the American people up until the 1930s, disdained paper money, respected commodity paper, and disproved of a central bank’s monopoly control of money creation and interest rates. Ironically, it was the abuse of the gold standard, the Fed’s credit creating habits of the 1920s, and its subsequent mischief in the 1930s, that not only gave us the Great Depression, but also prolonged it. Yet sound money was blamed for all the suffering. That’s why people hardly objected when Roosevelt and his statist friends confiscated gold and radically debased the currency, ushering in the age of worldwide fiat currencies with which the international economy struggles today.
Ron Paul (1935- )
Chairman of the House Financial Services Subcommittee on Domestic Monetary Policy
— Speech in the House of Representatives 5 September 2003
And I sincerely believe, with you, that banking establishments are more dangerous than standing armies; and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale.
Thomas Jefferson (1743-1826)
Third President United States
— Letter to John Taylor, Monticello, 28 May 1816. Ford 11:533.
Thomas Hart Benton
Wise and prudent was the conduct of those who refused to recharter the second Bank of the United States. They profited by the error of their friends who refused to recharter the first one. These latter made no preparations for the event – did nothing to increase the constitutional currency – and did not even act until the last moment. The renewed charter was only refused a few days before the expiration of the existing charter, and the federal government fell back to the State banks, which immediately sunk under its weight. The men of 1832 acted very differently. They decided the question of the renewal long before the expiration of the existing charter. They revived the gold currency, which had been extinct for thirty years. They increased the silver currency by repealing the act of 1819 against the circulation of foreign silver. They branched the mints. In a word, they raised the specie currency from twenty millions to near one hundred millions of dollars; and thus supplied the country with a constitutional currency to take the place of the United States Bank notes. The supply was adequate, being nearly ten times the average circulation of the national bank. That average circulation was but eleven millions of dollars; the gold and silver was near one hundred millions. The success of our measures was complete. The country was happy and prosperous under it; but the architects of mischief – the political, gambling, and rotten parts of the banks, headed by the Bank of the United States, and aided by a political party – set to work to make panic and distress, to make suspensions and revulsions, to destroy trade and business, to degrade and poison the currency; to harass the country until it would give them another national bank: and to charge all the mischief they created upon the democratic administration. This has been their conduct; and having succeeded in the last presidential election, they now come forward to seize the spoils of victory in creating another national bank, to devour the substance of the people, and to rule the government of their people.
Thomas Benton (1782-1858)
–Thirty Years’ View, pg. 228, 1858