If the Federal Reserve never had existed as some wish, we'd still have some kind of Central Bank unless we wanted to go back to the unstable banking system before almost all banks finally came under the Federal Reserve System during FDR's Presidency. For without a modern financial system with a Central Bank like the Fed, there would be much less credit for home or business loans, and more poverty.
But didn't the banks hurt our nation's finances? No, politicians hurt our finances and blamed the banks. How badly did crooked politicians hurt the financial system? Using the rule of 72 and diving the interest rate into 72 (which tells you how long it takes your money to double at that interest rate), in 720 years from now your money will double in an average savings account.
This is because the Fed has had to keep rates astronomically low because of the effect it would have on the economy to raise rates. This means banks can't reward the vast majority of citizens with a decent interest rate on savings who actually didn’t use their houses like poker chips.
The Fed's blamed for all the problems by the unknowing, which is sad because what's said about the Fed by people like Ron Paul is mostly untrue. The Federal Reserve is audited; it's just not audited by the IRS just as the Defense Department isn't. This is because the Fed functions as part of the Federal Government, even if it officially isn't.
Why this arrangement? Bankers discovered long ago that you can't control a government as those who believe in conspiracies say. The government has the guns and it always, at the end, killed the bankers and set up new bankers to escape debt. So the bankers figured out a way in the late 1600's to satisfy the politicians' need for financing which would made the bankers safe and prosperous too.
A Central Bank would “loan” money to its government as a quasi-government agency and refund the interest charged the government while using the government’s credit to make a fortune because the central bank became the sole issuer of banknotes. The government could borrow as much money as it needed, hopefully within the parameters of wisdom.
But in our times the system got broken by even historically sound governments, not the Central Banks. Central Banks like good banking. In our case the Fed doesn't choose to loan money to the government, it must by law. The Fed assumed that the government would actually borrow rationally. The government didn't.
Our government borrowed and borrowed “free” money to buy more and more votes and turned mortgage banks into welfare agencies. And you pay for it, after the politicians are dead or retired on guaranteed hyper-inflation proofed pensions and post retirement bribes disguised as jobs; with inflation, economic bubbles that burst causing depressions in various sectors of the economy and a country at times and in areas rocked with high unemployment. A bloated government doesn't refund you the interest it's refunded as this money must be used to feed even vital programs as taxes plummet as jobs are destroyed by high taxes and burdensome bureaucracy.
Fortunately, times in the U.S. may be getting better. As bad as our politicians are, Europe’s and Asia’s are worse. Also, our Federal Reserve System is fantastic and may just save the day. So firms in areas dealing with investing may be hiring again; especially since 2012 may be a boom year for the economy with money fleeing Europe and soon Asia.
And financial firms will want to hire quality people ahead of the boom times to gear up for the good times which may finally be coming.
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By Jeffrey Ruzicka
Jeffrey Ruzicka is a retired executive of a small company that specializes in industrial water treatment. He lives happily with his wife in Western Pennsylvania and is a contributing writer to Nexxt
If you are looking for a job, join our sites, it's free. Just fill out an easy on-line membership. You can also post a resume and cover letter and use our jobs boards at no cost to you. You'll even get e-mail job alerts once you're a member.
By Jeffrey Ruzicka
Jeffrey Ruzicka is a retired executive of a small company that specializes in industrial water treatment. He lives happily with his wife in Western Pennsylvania and is a contributing writer to Nexxt
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