The Federal Reserve System was created after the “Panic of 1907” and ever since its inception in 1913, the Fed is one of the most powerful modern central banks in the world. Moreover, the Fed has always been either celebrated or criticized for stepping in whenever the U.S. is stricken with some kind of fear. During the coronavirus outbreak, the central bank has unleashed a massive number of monetary easing tactics, which has prompted editors from Wikipedia to add updated information to the Fed’s Wiki page. The central bank’s page now states: “[the] COVID-19 pandemic in 2020 [has] led to the expansion of the roles and responsibilities of the Federal Reserve System.”
Panic at the Knickerbocker Trust – 1907
During the last few months, Americans have witnessed the power of the Federal Reserve’s shenanigans as the central bank has created trillions of dollars out of thin air. The expansion of the Fed’s balance sheet has ballooned to upwards of $6.9 trillion and the bank slashed the benchmark interest rate to zero percent. U.S. citizens have been indoctrinated to believe that the central bank is there to protect the country’s monetary system and keep it stable.
The Fed is also a secretive bank that works very closely with private dealers, smaller financial incumbents, and the country’s largest asset manager Blackrock. Since the very creation of the Fed in 1913, a group of America’s banking and corporate elite used a specific panic to make the public believe that the central bank would keep them safe. However, the Fed was initiated by the very people who destroyed the American economy in 1907 as a cartel of bankers used fear to get the populace on board with fraudulent schemes.
In mid-October, for three weeks the American economy suffered as the New York Stock Exchange dropped 50% during the first week. At the time the U.S. populace was much smaller than it is today with only around 87 million citizens. The panic that ensued caused many runs on banks, savings and loan firms, and trust companies. Depositors panicked because bankers were caught red-handed setting up ‘bucket shops’ with people’s deposits and only keeping a fraction of reserves on hand. This ultimately led to the fall of the Knickerbocker Trust and this is why some people call the panic of 1907 the ‘Knickerbocker Crisis.’ Scholarly articles show that one man, JP Morgan, and his crew of New York bankers saved the day. Even though Morgan and his cronies were responsible for the side bets, he and his crew also stepped in to offer a solution.
The Money Trust’s Creation of the Fed and the Group’s Tethered Relationship With Politicians