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
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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