Federal Reserve: Born from Crisis, Shaped by History #commodities #silver #gold

Added: 2026-05-16

[00:00:00]you had these bank frauds and failures and that caused this massive period of time from 1907 through 1914 uh 13. So at the end of two 1913 uh the Congress approved the creation of a national banking system, the Federal Reserve uh bank uh system uh which was put in place in 1914. It was interrupted by World War I and then the Roaring 20s and then the Great Depression and then World War II. Uh and during that period of time, the Fed sort of cut its teeth and learned how to deal with high-risk situations like world wars and depressions.

[00:00:41]But there have been a lot of policies that have been put in place since that time to avoid that and to avoid the high inflation rates of the seven 1870s, 1880s, 1890s. Um, and I talked about the the the fact that you had these high periods of inflation and and and and high periods of of depression in the 1870s, 80s and 90s. We were on species and there were periods of time when there was not enough gold to support the economy which was growing at that time and there were times when there was a surfet of gold and you had inflation. That's what comes with that.

[00:01:22]and he, you know, was a big advocate of what they call creative destruction. And he thought it was worth the while to let people starve to death and have their forms go bust uh in order to have that creative destruction.

[00:01:36]Yeah. But the real important thing is that politicians know that their careers, if not their lives, are at risk if they let depressions and hyperinflation emerge. So they take steps to limit the damage of their policies if you want to put it bluntly.

[00:01:56]And so we will have great recessions and we will have periods of higher inflation and we will have periods of lower growth and recessionary conditions and bank problems. But there are mechanisms put in place to try to limit the size of the damages at those cyclical highs and lows. And there are politicians and policy makers who fully understand the consequences of the French Revolution.