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Jekyll Island


Can you do an essay about how and why the Fed was created in 1910?

Who were the players that came together to create this?

Who was the credit-based monetary system intended to benefit?

What were the economic and social repercussions of the system they built that weekend in Jekyll Island?

You have noted several times that our financial system is intended to create inflation (a tax on the poor).   The past 10+ years of QE have exacerbated malinvestment, development of technology, and most notably in your essays have amplified the level of destabilizing wealth disparity that exists.

How will Janet/Jay merge fiscal and monetary policy to rectify the disheartening and inhumane level of inequity that was created (by the very design of our current system)?

Hi @clarencebeeks

Sure, I can do that at some point. It's not a complex story though. Basically, the system was imperfect with private clearing. The federal govt wanted to centralize the clearing so that the bankers couldn't run amok during panics. So we created a compromise - a system that was part private and part public. It's not really a conspiracy as the Jekyll book implies. In fact, it's a great system that works well most of the time.

I do agree that the Fed has been given too much responsibility though. Things like QE and altering rates with discretion are not nearly as helpful as some might think. And as you note, they might do more harm than good.


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