The Federal Reserve Act was passed during the Wilson administration, only 100 short years ago. So how has the Fed done over the last 100 years? First of all, let's mention that the Federal Reserve is not a government agency. It is about as "federal" as Federal Express. It was formed in 1913 in a devil's deal between bankers, who would get bailouts and Government, who would be able to spend money they didn't have (plenty more about that in these pages). So if you had to grade their performance over the last 100 years, how have they done:
- The biggest disaster in the history of the US economy was the Great Depression, well into the Fed's watch.
- The 2008 financial crisis was caused, in large part, by mal-investment encouraged by Fed action and was the latest in a string of greater and greater downturns in the economy.
- While the dollar essentially kept its value before the advent of the Fed, today's dollar can buy a little less than what a nickel could purchase in 1913.
- Debt is over $17 Trillion and is going up every minute with no sign of abatement.
- Interest rates have been artificially maintained at a low level once again, guaranteeing another market bubble will pop that will likely be greater than the one in 2008.
But what about after the Fed was established in 1913? You can see WWI with a modest but incomplete recovery and WWII with no recovery at all. Because the government began printing money to satisfy bankers and politicians, the recovery of the value of the dollar has not happened.
This is clear evidence that demonstrates the fraud and theft of American wealth that has been propagated on us by our government through the mechanism of the Fed. The Federal Reserve must be stopped.