Banks operating in the fractional reserve system have really no central bank annoying tendency to f

And one of nejkritizovanějších, moreover, had the circumstances of the Fed are like a James Bond movie. Three years before the signing of the Act, a group of politicians and financiers met at the resort on Jekyll Island to discuss the regulation of the banking system and outlined under the relevant laws. One of the books critical la rdoute of the Fed carries the name of the Creature from Jekyll Island.
"The bill passed the House of Representatives on September 18, the Senate he commented on December 18 - in more than forty points. As was the custom of the time, long-term, the next meeting of the Senate before Christmas did not take place. Unsuspecting critics of the law went for their families - and then read in the newspaper that behind them on 22 December, revised the 'Law approved and day out signed by the President. In Washington stayed la rdoute just before la rdoute Christmas, just the right ones. '" la rdoute
The meeting allegedly la rdoute took place for great secrecy - participants went on the night of New York's private train, the island was bare bones servants la rdoute and even that apparently did not learn the names of the guests. Classical covert lobbying meeting. If the parties mutually called la rdoute "hummingbird" and "dragon", about the historical sources are silent.
Fed is not really one institution, but a system of twelve member banks in various regions of the United States. Favorite topic of conspiracy theorists is that each Reserve Bank are formally private, their shareholders are commercial banks. But the whole Fed Governor appointed by the President, so it is like any other office. Any gain extra income Fed's federal budget.
That banks have influence on politics, the course, there is a dispute, but no need in that search more than there is. There is no secret that the financial sector in the U.S. contributes massively to the election campaign and lobbying lawmakers.
Banks operating in the fractional reserve system have really no central bank annoying tendency to fail. But it would not be economists to quarrel absolutely everything - professors Selgin and White are front and promoters of free banking argue that the banking system can function without a lender of last resort. Centenarian bubble blower
History of the Fed's inflation is undoubtedly history. Especially after President la rdoute Nixon in 1971 finally abolished the binding of the dollar into gold. But that is not the United States alone and does not even record holder. Great inflation in the 20th century after the world series - for example, in the UK, consumer prices rose in 1975 by 25 percent, significantly more than in the USA. After 80 years, however, as the inflation and interest rates systematically decreases, so for thirty years in the bond market investor jargon attribute bull - and barely bond prices have nowhere to soar.
A Another related aspect of the history of the Fed: financial bubbles. The fact that the policy la rdoute of low interest rates and cheap money significantly contributed to the recent bubble and financial crisis, no doubt, perhaps even the great helmsman Alan Greenspan.
Many critics of the central bank but was undoubtedly disappointed la rdoute when they did not meet their predictions that the response to the crisis in the form of extremely loose monetary policy and quantitative easing in the near term causes double-digit inflation or even hyperinflation.
How far will the Fed's unprecedented action, the total amount of the bond purchases under the quantitative easing just before the hundredth birthday swelled to four trillion U.S. dollars, that is the question.
That quantitative easing blown up real estate prices and financial asset is not a side effect but a deliberate consequence. People should because you feel richer and the "wealth effect" would be to encourage more spending. A more spending la rdoute equals higher gross domestic product. The reader ignorant of modern economic theories might think that it's just a more sophisticated attempt at central planning and economists in their ivory tower anyway I can know what level of spending and the level of rates is the right one. But they tell us to eat some gentlemen explain.
It is a fact that the U.S. deal with the crisis far better than Europe. A bet against the Fed need not be paid. Who, for instance, in late 2009 in the aftermath of the biggest la rdoute shocks said, it's all one big bubble and it's time to get out, it ran almost pětačtyřicetiprocentní growth index S & P 500
The historical peaks is not always the best time to purchase, on the other hand, the record profits of U.S. companies. Market reaction, however, are sometimes rather comical. After the growth of good news - and bad news too grow because everyone betting on continued stimulus policies.
How does it happen la rdoute in 2014? There will market a peaceful boredom occurs correction or events la rdoute will hit blacks and inflates another massive bubble? Sorry, I can not tell you with certainty, the crystal ball, I just wrote Santa Claus. In the long term but pragmatic Americans believe more than European socialism.
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