MONETARY HISTORY CALENDAR August 20-26

AUGUST 20

1935 – BIRTH OF RON PAUL, US CONGRESSMAN

Referring to the Federal Reserve, he stated, "maybe there's too much power in the hands of those who control monetary policy?  The power to create the financial bubbles.  The power to maybe bring the bubble about.  The power to change the value of the stock market within minutes.  That to me is just an ominous power and challenges the whole concept of freedom and liberty and sound money."

AUGUST 23

1935 – PASSAGE OF BANKING ACT

The law made the FDIC a permanent agency and raised the deposit insurance level to $5,000.

The Federal Reserve System was reformed with the transformation of the Federal Reserve Board of Directors to the Board of Governors. All board members were appointed by the President with the advice and consent of the Senate and the term of service was expanded to 14 years. Open-market operations were formalized in the Federal Open Market Committee and the Governors were allowed to determine interest rates and bank reserve requirements. These “reforms,” however, were window dressing. The power and authority to issue money as debt was retained in the hands of the private Federal Reserve and private banking corporations. Keeping reserve requirement decisions in the hands of the Fed only invited speculation and risk (reserve requirements are the ratio of money banks lend in excess of money they actually possess “in reserve” to cover loans. Banks loan many times the amount of funds in their reserve).

AUGUST 24

1916 – BIRTH OF ROBERT DE FREMERY, AUTHOR, RIGHTS VS PRIVILEGES

"It is not obvious that there are serious defects in our banking system and our tax system that deprive most of us of fundamental rights and bestow enormous privileges on others? How many riots must we endure?  How many prisons must we build?  How many of our rights must we lose?  How many of our young people must be sent away to fight in foreign wars before we decide that enough is enough?"

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Why this calendar? Many people have questions about the root causes of our economic problems. Some questions involve money, banks and debt. How is money created? Why do banks control its quantity? How has the money system been used to liberate (not often) and oppress (most often) us? And how can the money system be “democratized” to rebuild our economy and society, create jobs and reduce debt?
Our goal is to inform, intrigue and inspire through bite size weekly postings listing important events and quotes from prominent individuals (both past and present) on money, banking and how the money system can help people and the planet. We hope the sharing of bits of buried history will illuminate monetary and banking issues and empower you with others to create real economic and political justice.
This calendar is a project of the Northeast Ohio American Friends Service Committee. Adele Looney, Phyllis Titus, Donna Schall, Leah Davis, Alice Francini and Greg Coleridge helped in its development.
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