The Federal Reserve System

The Federal Reserve or the Fed is trusted institution. From its founding in secrecy on an island in South Carolina by America"s rich and powerful. The rich in America have had their wealth protected by the Fed. A secret meeting on Jekyll Island, SC of Senator Nelson Aldrich, and executive bankers representing banks of JP Morgan, Rockefeller, and Kuhn, Loeb & Co, led the founding of the Fed in 1913. Americans up until that time had resisted central banks, the first two attempts resulted in charters not being renewed, an issue that would be corrected in future legislation. The Panic of 1907, which threatened the personal fortunes of these very men, and their supporters, gave this idea a sense of urgency. A central bank with an appearance in independence and government support could insulate bankers from public scrutiny and legalize actions taken. Thus, as part of a progressive era changes America has a central bank in perpetuity. What is the Federal Reserve an introduction by Investopedia ? "Most people are aware that there is a government body that acts as the guardian of the economy - an economic sentinel who implements policies designed to keep the country operating smoothly"The Fed is the gatekeeper of the U.S. economy. It is the bank of the U.S. government and, as such, it regulates the nation's financial institutions. The Fed watches over the world's largest economy and is, therefore, one of the most powerful organizations on earth." http://www.investopedia.com... Then Investopedia"s definition: "The central bank of the United States and the most powerful financial institution in the world. The Federal Reserve Bank was founded by the U.S. Congress in 1913 to provide the nation with a safe, flexible and stable monetary and financial system. It is based on a federal system that comprises a central governmental agency (the Board of Governors) in Washington, DC and 12 regional Federal Reserve Banks that are each responsible for a specific geographic area of the U.S. The Federal Reserve Bank is considered to be independent because its decisions do not have to be ratified by the President or any other government official. However, it is still subject to Congressional oversight and must work within the framework of the government"s economic and financial policy objectives." http://www.investopedia.com... Any debate about the Fed, need to differentiate between money, currency, and legal tender. Money serves as a medium of exchange, a unit of accounting, and a store of value. Currency serves as a medium of exchange and a unit of accounting. Legal tender is government directed currency that serves as a medium of exchange, and unit of accounting within a jurisdiction. Legal tender laws require the acceptance of government direct currency as payment. A business can refuse to accept gold, checks, promissory notes, or digital currencies, but cannot refuse legal tender. The Federal Reserve does not print or mint currency, money, or legal tender. During this debate, it will be established that the US Federal Reserve is in the best interest of America. The Fed is constitutional, supported by republican government, moderates economic swings, and protects the banking system.