Andrew Jackson dismantled the National Bank because he feared the rise of a financial aristocracy. Are those fears recognized today with the Federal Reserve and its private ownership?

 

While the video has great production value, its completely wrong on how the Fed and banks in general work. Banks dont create money out of thin air. The Fed does “print money”, and here is why: The Fed buys treasury securities in order to keep our interest rates low. This does two things. One, it lets banks borrow money from the Fed for cheap or free. Banks are then able to lend money to corporations, and individual borrowers. The problem here is that the Fed has kept interest rates too low for too long. This means that banks are continuing to rely on cheap loans to remain profitable. Making sudden adjustments could lead to a freeze in credit markets which could cause another recession and further unemployment. The positive part is that the Fed keeps the US interest at 2.4%. If they didnt artificially decrease interest rates wed pay about 5.4%. That means wed pay about $930 billion in interest rates with our current debt, and considering that our tax revenue is only $1.1 trillion its obvious wed be in serious trouble. This is the single most important issue regarding the Fed. From a political POV I would prefer that the Fed be much more transparent and would be required to accept much more congressional oversight. Going back to the video though… its complete and utter nonsense. The creator clearly has video production & editing skills but doesnt understand the Fed or how banks actually work.