Page 129 - TrumpsEconEra_Flat

Trump’s Economic Era

This group represented a financial trust that
controlled approximately a quarter of the world’s
wealth. The bankers presented their cartel arrangement
to Congress after putting the term “Act” on the
document and, with the support of President Woodrow
Wilson, Congress passed the Federal Reserve Act a few
days before Christmas in December of 1913. Thus, the
United States became a part of the international banking
cartel. The Creature from Jekyll Island by G. Edward
Griffin tells the story.

Before 1913, the people had veto power over
deficit spending because they could choose not to
purchase government bonds to fund this or that
program. With the Federal Reserve Act, the government
could now sell bonds to the Fed without restraint, thus
negating the people’s veto power over government
spending.

MONETARY POLICIES
If we have an inflation problem, the Fed will raise
the cost of borrowing, and if we have unemployment,
the Fed will make it easier to borrow money. Lenient
policies will lead to lower interest rates and strict
policies will cause higher interest rates. Although the
Fed controls the federal funds rate and the prime rate, it
can only influence interest rates in general, but it cannot
control interest rates. Monetary authorities are mostly
academics who make decisions based on their
econometric models. If events do not fit their models,
they tend to ignore them.

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