Real Clear Markets/CJ Maloney/9-9-2022
“It is true that during the 1836 to 1913 period, when our nation was bereft of a central bank, the intellectuals and bankers who advocated for its reestablishment were overwhelmingly of the opinion that it had to be kept free of politics — but they were never able to explain how such a thing was possible for a bank that was to be birthed from and sustained by politics. On the other hand, the Founders of our Federal Reserve were clear-eyed about the matter. They understood that the central banking question was about power — about politics — and that was a turbulent ocean they were deeply experienced in navigating. They made sure to stamp the Federal Reserve Act to reflect their view of the issue.”
USAGOLD note: Contary to the widely held belief that the Fed is immune to politics, Maloney says the “idea is a noble one” but that the Fed was founded on the notion of “strong political control.” Maloney is a Wall Street veteran working on a book on the origins of the Federal Reserve System.
