Sept. 8, 2025 - Epoch Times
03:26
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| Time | Text |
|---|---|
| The word Federal Reserve is by itself funny because it doesn't say central bank. | |
| Americans hated the idea of a central bank because that was more like Germany and Bismarck or whatever. | |
| They didn't want that. | |
| But Central Bank is not an American institution, so they called it something completely different. | |
| It's actually kind of genius. | |
| They called it first the word federal. | |
| Federal meaning decentralized, you know, consistent with the Tenth Amendment. | |
| So to accomplish that federal peace, uh the uh the the new central bank had uh branches, you know, had uh Minneapolis Fed, Atlanta Fed, a Dallas Fed, Chicago Fed, you know, San Francisco Fed, so there's many Federal Reserve banks around the country for and for no apparent reason, really, except to create the illusion of decentralization. | |
| Okay, so there was that. | |
| Uh the second part, this word reserve is is funny when you think about it, because uh it implies that they have something. | |
| They're in the possession, we have the reserves. | |
| Just in case we need them, we have the reserves. | |
| In the end, despite its name, despite the intentions of the founders, it was a central bank. | |
| It was a progressivist uh experiment and the application of expertise and science to the sound management of the monetary system of the country. | |
| You know. | |
| And but what's interesting is that of course, of course, and anybody would have predicted this. | |
| I mean, Thomas Jefferson certainly would have Thomas Paine, this whole generation would have predicted. | |
| If you get anything like a central bank, a national bank, a central bank, it will be abused. | |
| It'll be abused immediately, but the matter the intentions, whatever, it'll be abused. | |
| So what presented itself soon after the Fed was founded? | |
| The war in Europe. | |
| The Great War. | |
| It was a mess, a terrible mess. | |
| And Americans wanted nothing to do with it. | |
| But at some point, so what kept America out of war is for the most part was well, we just didn't want to afford it. | |
| We didn't have the money. | |
| You know? | |
| Solve your own problems. | |
| We're over here on the other side of the world, we can mind our own business over here. | |
| And uh we don't have the money. | |
| Well, now with the Fed, you have the money. | |
| You've got a printing press. | |
| You've got this weird power of this one institution to buy and hold government-created debt with money that didn't previously exist. | |
| A check. | |
| You know, uh a credit. | |
| The nation had a credit card with an infinite uh balance on it, you know, infinitely high uh limit. | |
| What could go wrong? | |
| What could go wrong, right? | |
| I mean that actually you know, and again, I think the founders of the Fed didn't really imagine this. | |
| They thought, well, we're we're all look at us. | |
| We're responsible guys. | |
| You know, we know what's what, we would never do something like that. | |
| Well, they lost control of it right away. | |
| And so the Fed was probably the reason why the U.S. entered the Great War. | |
| Lots of people argue for a constitutional amendment to balance the budget. | |
| A lot of people want their Congress to cut spending and so on and so on. | |
| But until you unplug the Fed's capacity to just print money and cover up for all the profligacy of Congress, we're never gonna get there. | |
| We need we need sound money, or we're never gonna get anything remotely like a balanced budget. | |
| It's the Fed that makes it all possible. |
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