Let The Bail-Ins Begin…(Get Out Of The Banks!!)
by Martin Armstrong
ArmstrongEconomics.com
January 16, 2016
Portugal is starting to bail-in banks. The fascinating aspect that nobody seems to see is that this is a total failure of socialism. The U.S. Federal Reserve was formed in 1913, with the shareholders being the banks, to provide the cash needed to prevent bank failures. To stimulate the economy when the banks could not or would not lend, the Fed was supposed to buy CORPORATE notes. Then World War I came and the politicians ordered the Fed to buy government bonds. Of course, they never returned the Fed to its original purpose.
FDR usurped the Fed, placed it in Washington, and instituted a single national interest rate; each of the branches maintained a different interest rate to attract capital when there were shortages in one district. So it was common to see rates differ around the country based upon the local economic conditions. FDR also created the FDIC because the Fed failed to function during the Great Depression. The creation of the FDIC was sparked by bankers who were willing to let a New York bank fail in 1930 that happened to be named THE BANK OF THE UNITED STATES. Bank runs began nationwide as people assumed that this Bank of the United States was the government or Federal Reserve. The Bank of the United States was a Jewish banks and the other bankers wanted it to fail to get its business. When it was settled, the Bank of the United States eventually paid out 92 cents on the dollar.
The Rest…HERE
