Jester Chat Friday Night "A Short History of Banking"

[Jester] HI ALL... MODS, PEEPS, LURKERS, AND CRITTERS... I SEE MOST OF THE ROOM IS OUT ON A DATE TONIGHT... LUCKY THEM.. HAHAHAHAH

 [Jester] YOU GUYS ARE STUCK WITH ME... HAHAHAH

[Jester] SO ANOTHER LONG WEEK COME AND GONE... TOMORROW IS DONUT DAY.... HA!

[Pilgrim] Jester CAKE OR GLAZED??

 [Jester] I JUST GET THE PLAIN OLD FASHIONED ONES...YOU GUYS ARE TRULY BORED IF YOU HAVE NOTHING BETTER TO DO BUT HANG OUT HERE TALKING ABOUT FOOD.... HAHAHAHAH

 [Betsy Ross] Jester They are hoping you had something else to talk about

 [Truth] Jester so what else would you like to talk about?
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[MotoXR] Jester, last week we were talking about Woodrow Wilson and he was the first to sign the federal reserve act, how come no one ever questioned it or changed it back in your opinion

[Jester] MotoXR NO ONE HAS THE KAHUNAS TO GO UP AGAINST THE CABAL... THEN WHEN THEY GET IN THEY ARE PART OF THE PROBLEM...

[MotoXR] The Cabal was that big back then Or they were frightened of them?

 [Jester] WOODROW ADMITTED HE SCREWED UP... BUT NO ONE DID ANYTHING ABOUT IT... SO HERE WE ARE... THEY MAKE MONEY OUT OF THIN AIR... GIVE IT TO US TO USE... AND WE PAY THE INTEREST ON IT WITH OUR TAXES...

[lulu] MotoXR every president that has tried to get rid of the federal reserve has been assasinated

 [Jester] MotoXR THEY WERE AOUND AT THE REVOLUTION... THIS IS NOT THE FIRST CENTRAL BANK WE HAD DID YOU KNOW THAT?

[Jester] BANK OF NORTH AMERICA - Some Founding Fathers were strongly opposed to the formation of a central banking system; the fact that England tried to place the colonies under the monetary control of the Bank of England was seen by many as the "last straw" of oppression which led directly to the American Revolutionary War.

Others were strongly in favor of a central bank. Robert Morris, as Superintendent of Finance, helped to open the Bank of North America in 1782, and has been accordingly called by Thomas Goddard "the father of the system of credit and paper circulation in the United States."

As ratification in early 1781 of the Articles of Confederation had extended to Congress the sovereign power to generate bills of credit, it passed later that year an ordinance to incorporate a privately subscribed national bank following in the footsteps of the Bank of England.

 However, it was thwarted in fulfilling its intended role as a nationwide central bank due to objections of "alarming foreign influence and fictitious credit," favoritism to foreigners and unfair policies against less corrupt state banks issuing their own notes, such that Pennsylvania's legislature repealed its charter to operate within the Commonwealth in 1785.

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[Jester] FIRST BANK OF THE UNITED STATES - n 1791, former Morris aide and chief advocate for Northern mercantile interests, Alexander Hamilton, the Secretary of the Treasury, accepted a compromise with Southern lawmakers to ensure the continuation of Morris's Bank project; in exchange for support by the South for a national bank, Hamilton agreed to ensure sufficient support to have the national or federal capitol moved from its temporary Northern location, New York, to a Southern location on the Potomac.

 As a result, the First Bank of the United States (1791–1811) was chartered by Congress within the year and signed by George Washington soon after. The First Bank of the United States was modeled after the Bank of England and differed in many ways from today's central banks. For example, it was partly owned by foreigners, who shared in its profits.

Also, it was not solely responsible for the country's supply of bank notes. It was responsible for only 20% of the currency supply; state banks accounted for the rest. Several founding fathers bitterly opposed the Bank. Thomas Jefferson saw it as an engine for speculation, financial manipulation, and corruption. In 1811 its twenty-year charter expired and was not renewed by Congress.

Absent the federally chartered bank, the next several years witnessed a proliferation of federally issued Treasury Notes to create credit as the government struggled to finance the War of 1812; a suspension of specie payment by most banks soon followed.

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[Jester] SECOND BANK OF THE UNITED STATES - After a five-year interval, the federal government chartered its successor, the Second Bank of the United States (1816–1836). James Madison signed this charter, expressing the hope that it would end the runaway inflation of the five-year interim. It was basically a copy of the First Bank, with branches across the country.

 Andrew Jackson, who became president in 1828, denounced it as an engine of corruption. His destruction of the bank was a major political issue in the 1830s and shaped the Second Party System, as Democrats in the states opposed banks and Whigs supported them. He did not get the bank dissolved, but refused to renew its charter.

The end of the bank saw a period of runaway inflation purposely engineered by the bankers. Jackson's attempted to counteract this by executive order requiring all Federal land payments be made in gold or silver, which the constitution requires, this produced the minor depression of 1837, which lasted for four years, but recovered into more stable economic growth.

[MotoXR] Jester wow thank you

Jester] 1837–1862: "FREE BANKING" ERA - In this period, only state-chartered banks existed. They could issue bank notes against specie (gold and silver coins) and the states heavily regulated their own reserve requirements, interest rates for loans and deposits, the necessary capital ratio etc.

These banks had existed since 1781, in parallel with the Banks of the United States. The Michigan Act (1837) allowed the automatic chartering of banks that would fulfill its requirements without special consent of the state legislature.

This legislation made creating unstable banks easier by lowering state supervision in states that adopted it. The real value of a bank bill was often lower than its face value, and the issuing bank's financial strength generally determined the size of the discount. By 1797 there were 24 chartered banks in the U.S.; with the beginning of the Free Banking Era (1837) there were 712.

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[Jester] 1863–1913: NATIONAL BANKS - The National Banking Act of 1863, besides providing loans in the Civil War effort of the Union, included provisions: To create a system of national banks. They had higher standards concerning reserves and business practices than state banks.

Recent research indicates that state monopoly banks had the lowest long run survival rates. The office of Comptroller of the Currency was created to supervise these banks. To create a uniform national currency.

To achieve this, all national banks were required to accept each other's currencies at par value. This eliminated the risk of loss in case of bank default. The notes were printed by the Comptroller of the Currency to ensure uniform quality and prevent counterfeiting. To finance the war.

National banks were required to back up their notes with Treasury securities, enlarging the market and raising its liquidity. As described by Gresham's Law, soon bad money from state banks drove out the new, good money; the government imposed a 10% tax on state bank bills, forcing most banks to convert to national banks. By 1865, there were already 1,500 national banks. In 1870, 1,638 national banks stood against only 325 state banks.

The tax led in the 1880s and 1890s to the creation and adoption of checking accounts. By the 1890s, 90% of the money supply was in checking accounts. State banking had made a comeback. Two problems still remained in the banking sector. The first was the requirement to back up the currency with treasuries.

When the treasuries fluctuated in value, banks had to recall loans or borrow from other banks or clearinghouses. The second problem was that the system created seasonal liquidity spikes. A rural bank had deposit accounts at a larger bank, that it withdrew from when the need for funds was highest, e.g., in the planting season.

 When combined liquidity demands were too big, the bank again had to find a lender of last resort. These liquidity crises led to bank runs, causing severe disruptions and depressions,

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[Jester] FEDERAL RESERVE SYSTEM - YOU KNOW THE REST OF THIS STORY... The Federal Reserve's power developed slowly in part due to an understanding at its creation that it was to function primarily as a reserve, a money-creator of last resort to prevent the downward spiral of withdrawal/withholding of funds which characterizes a monetary panic.

 At the outbreak of World War I, the Federal Reserve was better positioned than the Treasury to issue war bonds, and so became the primary retailer for war bonds under the direction of the Treasury. After the war, the Federal Reserve, led by Paul Warburg and New York Governor Bank President Benjamin Strong, convinced Congress to modify its powers, giving it the ability to both create money, as the 1913 Act intended, and destroy money, as a central bank could.

During the 1920s, the Federal Reserve experimented with a number of approaches, alternatively creating and then destroying money which, in the eyes of Milton Friedman, helped create the late-1920s stock market bubble.

 After Franklin D. Roosevelt took office in 1933, the Federal Reserve was subordinated to the Executive Branch, where it remained until 1951, when the Federal Reserve and the Treasury department signed an accord granting the Federal Reserve full independence over monetary matters while leaving fiscal matters to the Treasury.

The Federal Reserve's monetary powers did not dramatically change for the rest of the 20th century, but in the 1970s it was specifically charged by Congress to effectively promote "the goals of maximum employment, stable prices, and moderate long-term interest rates" as well as given regulatory responsibility over many consumer credit protection laws.

[Jester] YEHA OKAY WHATEVER... THAT IS THE OFFICIAL TEXT... I THINK WE KNOW THE REALITY OF WHAT IS GOING ON...

[Betsy Ross] Wow!

[Jester] SORRY TO THROW ALL THAT IN AT ONCE... BUT IT IS CLOSE TO CLOSING AND I LIKED TO MAKE SURE IT ALL GOT IN HERE...

[Jester] SOOOOO... WHO ASKED THE QUESTION HOW FAR BACK IT GOES? IT GOES BACK TO THE VERY BEGINNING... THE BANKERS HAVE BEEN AT THIS FOR A LONG TIME...

[clange] Answered a lot of questions

[Betsy Ross] Jester according to one of the videos on your FB page it goes back to the days of the romans

[Jester] EASY TO FIND ALL THIS STUFF... ALL YOU HAVE TO DO NOW THAT WE HAVE THE INTERNET IS LOOK FOR IT...

[lulu] Jester does it go back farther than that Jesus brought up the money changers in his teachings

[Jester] Betsy Ross WELL SURE BUT NOT IN THE US... HAHAHAH

[Truth] Jester so basically this whole scenario is to control citizens and their activities, cover up for stealing from us all saying it is for us to have better economy and better life, with big government.

[Jester] SEE BACK IN THE DAY... WITH THE EARLIER BANKS... THE PEOPLE WOULD NOT PUT UP WITH IT... SO THEY WERE LATER REPLACED WITH NEW ITERATIONS... UNTIL THE FEDERAL RESERVE TOOK HOLD BECAUSE THE PEOPLE WERE IGNORANT OF WHAT HAD HAPPENED TO THEM... AND NOW THAT WE KNOW WE ARE TOO SCART TO DO ANYTHING ABOUT IT NOW...

[Hannah] I hated history in school. It all seemed so boring. Amazing how fascinating it is now.

[Betsy Ross] Hannah me too

 [Betsy Ross] Hannah because we can relate now

[Truth] Jester so where do we go from here?

[lulu] Okay jester who has this much power to pursue this after thousands of years and are the money changers " people at all

[Jester] lulu THEY HAVE BEEN RUNNING THE WORLD ALL ALONG... THE CABAL THEY ARE CALLED...

 [Jester] ILLUMINATI, BILDERBERGS, BOHEMIAN GROVE, BUSHES, MANY MORE FAMILIES... THEN THERE ARE THE PUBLIC ARMS YOU SEE OF ALL THAT... CENTRAL BANKS, TRILATERAL COMMISSION, AND MANY OTHER BS ENTITIES SET UP FOR THE USE OF THE MONEY TO CONTROL THE WORLD...

[Jester] HOPE THAT HELPS... PROBABLY GAVE YOU NIGHTMARES FOR TONIGHT... HAHAHAH

[Vigilance] Jester night and thanks

[Jester] NIGHT NIGHT...