History lesson. This is a paper rather than a post.
As published in the Social Sciences Research NetworkMichael-Hudson.com
How the U.S. Treasury avoided Chronic Deflation by Relinquishing Monetary Control to Wall Street
Michael Hudson | President of The Institute for the Study of Long-Term Economic Trends (ISLET), a Wall Street Financial Analyst, Distinguished Research Professor of Economics at the University of Missouri, Kansas City, and Guest Professor at Peking University
1 comment:
Agreed, the federal gov't had relinquishing control to Wall Street even before Congress created a commission to study how a central bank could be established. According to Ben Bernanke in 'The Courage to Act', "In the Panic of 1907, in the absence of a central bank, J. Pierpont Morgan formed a private consortium and worked to end the panic by extending loans to institutions experiencing runs, examining problem bank books, and reassuring the public. That a private citizen could act where the government could not was an embarrassment."
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