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System of federal reserve by essay
System of federal reserve by essay
System of federal reserve by essay
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Most Americans feel the United States of America is a beacon of democracy and raw capitalism, the leader of the “free” world. The founding fathers had every intention of turning the new world into a full fledged democracy, devoid of any monarchy or source of totalitarian power. The constitution itself demands that our government be “of, for and by the people”, and be divided into complex units of checks and balances, designed to thwart any potential power struggle by one specific branch. In essence, the constitution of the United States is a perfect blueprint for democracy in its purest form, with power and control in the hands of its citizens. Unfortunately, this is not the case today. By giving up the right to print its own currency in 1913, the US Government bequeathed its powers to a select few, who have owned and operated this country ever since. They are the true masters of US domestic and foreign policy.
Just like a corporation issues shares of stock to function as a productive entity, a country has to issue currency in order to fund its operations. This currency is the lifeblood of a nation, creating wealth for its citizens by fostering economic development and providing public infrastructure and services. In a true democracy, the government is owned by the citizens and operated by representatives of the population as a whole, who control and more importantly regulate the issuance of this currency. This is a critical point to remember.
Just like a public company [that issues too much stock] can be punished by the public markets for diluting its share structure, a nation’s currency can suffer the same effects through inflation if the government prints too much money relative to the value of the economy. This can be co...
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...al well into the 21st century and beyond depends on it.
Thanks to innovations like the Internet, the public’s ability to access information that was once kept hidden from view is now possible. This instills the hope that much like the Fellowship in LOTR was eventually able to thwart the efforts of Sauron, we as citizens of the United States can succeed in abolishing the Federal Reserve System and help restore this nation to the democratic vision of our Forefathers.
http://www.federalreserve.gov/pubs/frseries/frseri.htm
Delaware Corporation No. 0042817, https://sos-res.state.de.us/tin/GINameSearch.jsp
http://www.lib.umich.edu/govdocs/jfkeo/eo/11110.htm
DiLorenzo, Thomas J. 1994. Economic Fascism, The Freeman
DiLorenzo, Thomas J. 1994. Economic Fascism, The Freeman
http://www.house.gov/paul/legis/106/hr1148.htm
http://www.ronpaulinstitute.org/
-1. How could the Federal Reserve prevent and solve financial crisis? – The function of Federal Reserve.
The year of 1776 was a time of revolution, independence, and patriotism. American colonists had severed their umbilical cord to the Mother Country and declared themselves “Free and Independent States”.1 The chains of monarchy had been thrown off and a new government was formed. Shying away from a totalitarian government, the Second Continental Congress drafted a document called the Articles of Confederation which established a loose union of the states. It was an attempt at self-government that ended in failure. The Articles of Confederation had many defects which included a weak central government that lacked the power to tax, regulate trade, required equal representation and a unanimous vote to amend the Articles, and had only a legislative branch. As a result the United States lacked respect from foreign countries. These flaws were so severe that a new government had to be drafted and as a result the Constitution was born. This document remedied the weak points of the federal government and created one that was strong and fair, yet still governed by the people.
There is perhaps no other political issue in our contemporary society that is more pertinent, pervasive, and encompassing than a nation’s economy. From the first coins used in Greece and the Asia Minor in the 7th century BCE, to the earliest uses of paper money, history has proven time and time again that the control of a region’s economy is absolutely crucial to maintaining social stability and prosperity. Yet, for over a century scholars have continued to speculate why the United States, one of the world’s strongest and most influential countries, has one of the most unstable economies. Although the causes of this economic instability can be attributed to multiple factors, nearly all economists agree that they have a common ancestor: the Federal Reserve Bank – the official central bank of the United States. Throughout the course of this paper, I will attempt to determine whether or not there is a causal relationship between the Federal Reserve Bank’s monetary policies and the decline of the U.S. economy. I will do this through a brief analysis of the history and role of this institution, in addition to the central banking system in general. In turn, I will argue that the reckless and intentional manipulation of the economy by the Federal Reserve Bank, through inflation and the abolishment of the gold standard, has led to the current economic crisis in the United States.
In 1789, the Confederation of the United States, faced with the very real threat of dissolution, found a renewed future with the ratification of the Constitution of the United States. This document created a structure upon which the citizens could build a future free of the unwanted pitfalls and hazards of tyrannies, dictatorship, or monarchies, while securing the best possible prospects for a good life. However, before the establishment of the new United States government, there was a period of dissent over the need for a strong centralized government. Furthermore, there was some belief that the new constitution failed to provide adequate protection for small businessmen and farmers and even less clear protection for fundamental human rights.
After winning the Revolutionary War and sovereign control of their home country from the British, Americans now had to deal with a new authoritative issue: who was to rule at home? In the wake of this massive authoritative usurpation, there were two primary views of how the new American government should function. Whereas part of the nation believed that a strong, central government would be the most beneficial for the preservation of the Union, others saw a Confederation of sovereign state governments as an option more supportive of the liberties American’s fought so hard for in the Revolution. Those in favor of a central government, the Federalists, thought this form of government was necessary to ensure national stability, unity and influence concerning foreign perception. Contrastingly, Anti-Federalists saw this stronger form of government as potentially oppressive and eerily similar to the authority’s tendencies of the British government they had just fought to remove. However, through the final ratification of the Constitution, new laws favoring state’s rights and the election at the turn of the century, one can say that the Anti-Federalist view of America prevails despite making some concessions in an effort to preserve the Union.
At first glance, it seems implausible the word democracy isn't written in the United States Constitution, or in the Preamble of the Constitution, or even in the Declaration of Independence. One would assume a concept so paramount to modern American culture would surely be derived from one of its oldest and most endeared documents. Alas, it is not. The Constitution only specifically mentions two entities, the government and “We the People”. Defining government is an easy enough task, but who are “We the People”? Originally consisting of only white male property owners, eventually adding in other races, income classes, women, and astonishingly, corporations, the definition of “We the People” has evolved numerous times. Corporation is another key term the architects of our government failed to define for us, perhaps that is why it found its way into the phrase “We the People”. A grave dilemma lies in this fallible defining of terms. Granting corporations person-hood legislatively shifts the power of democracy from human interests to corporate interests. This corrosion of human interest can clearly be noted when examining the battle over corporate power highlighted in the court cases of Sebelius v. Hobby Lobby, Citizens United v. Federal Election Commission, and United States v. Sourapas and Crest Beverage Company.
Over the past few years we have realized the impact that the Federal Government has on our economy, yet we never knew enough about the subject to understand why. While taking this Economics course it has brought so many things to our attention, especially since we see inflation, gas prices, unemployment and interest rates on the rise. It has given us a better understanding of the effect of the Government on the economy, the stock market, the interest rates, etc. Since the Federal Government has such control over our economy, we decided to tackle the subject of the Federal Reserve System and try to get a better understanding of the history, the structure, and the monetary policy of the power that it holds. The Federal Reserve System is the central banking authority of the United States.
Upon the opening words of the Constitution, "We the People do ordain and establish this Constitution for the United States of America," one must ask, who are these people? While the American Constitution provided its citizens with individual rights, many members were excluded. Elite framers manipulated the idea of a constitution in order to protect their economic interests and the interests of their fellow white land and slave owning men' by restricting the voices of women, slaves, indentured servants and others. Therefore, the Constitution cannot truly be considered a "democratic document." However, because it is a live document, malleable and controllably changeable according to the interest of congress, it has enabled us to make reforms overtime. Such reforms that have greatly impacted America, making us the free, independent nation that we are today.
“A government big enough to give you everything you want is big enough to take away everything you have” (Democracy Quotes). Years ago, Thomas Jefferson was among many who, during drafting and ratification of the constitution, voiced their wariness over the creation of a strong national government. Professor I.M. Skeptic argues that the constitution was born out of a distrust of democracy. I do believe that the constitution was created out of distrust; however I believe this distrust is for a strong central government that was displayed through Britain 's monarchy, not of democracy.
The United States of America is a republic, or representative democracy. Democracy, a word that comes to us from Greek, literally means the people rule (Romance, July 8). This broad definition leaves unanswered a few important details such as who are the people, how shall they rule, and what should they rule on (July 8). Defining the answers to those questions means defining a model for a democratic system. William E. Hudson defines four such models in his book American Democracy in Peril: the Protective, Developmental, Pluralist, and Participatory models of democracy (Hudson, 8-19). Of these models, perhaps Participatory comes closest to an ideal, pure democracy of rule by the people (16-19). In practice, however, establishing a stable ideal democracy is not entirely feasible. In a country the size of the United States, it quickly becomes unwieldy if not impossible to have direct rule by the people. To overcome this, the compromise of the representative system allows the people to choose who will rule on a regular basis. The political culture that defines American politics shows that despite this compromise, America is still very much a democratic society.
In 1775, the colonists in the new world started to revolt against the British monarchy. The American revolution had begun. The colonists no longer supported the british government. After a gruesome eight year war, the new world finally gained independence from Great Britain. America was now a new country. As a new country in development, the people and the leaders in America decided to form a democratic government. This new government, a democratic one, was and still is based off of ideas of liberty, equality, citizen participation, and freedom. These ideas were used to write the Bill of rights and the constitution. They also are shown in citizen rights and responsibilities. 175 years after America gained independence, our democratic government is still standing strong. Why? Because the rights and responsibilities of a US citizen guards the basic ideas America was built on, and still stands for today.
Author Unknown (1994). The Federal Reserve System: Purposes and Functions (5th ed.) Published by Library of Congress
After breaking free from the British tyranny in 1776, America was built on the principles of independence and freedom. The weakness of the first Constitution, the Articles of Confederation, proved that the United States needed some form of a strong central government. However, this created an issue due to the fact that the new Americans were scared that there would be a repeat of the oppression they faced with Britain (History Staff). The solution was to create a government that was able to restrict itself from gaining too much power, while also simultaneously being able to maintain its strength. The solution was found by adding a few principles in the foundation of the American governmental system. First off, the concept of being able
It is clearly obvious that our country’s Constitution was founded on a distrust. It is Found on a distrust of large government, the public, and our elected legislature. With time people have come take on the philosophy of John Locke and Thomas Hobbes allowing them to trust our government because “People are Dumb butts” (Kallas). In recent years some of the citizens are starting to recognize the distrust in the people around them and the distrust of the people leading our country. Some of the over arching areas of distrust are the electoral college, unelected courts, the senate, and checks and balances, these parts of our government's structure enable the political leaders of our country to strip away our rights and involve their own personal interest in political decisions.
The American government prides itself on the foundational principle of democracy which allows individual voices to be heard. Afterall, the roots of power in our nation stem from the people. The Constitution was established to ensure the balance of powers among the federal government, state legislature, and the common people. Time, however, has worked against the American people in the battle towards democracy. The idea of a governing body drawing its power directly from its constituents has been undermined by the corrupt nature of modern politics where politicians act out of self-interest. While the Constitution and later amendments had every intention of securing basic liberties, certain limitations later undermined the original intentions of the founding fathers to give power back to the people by placing the larger majority of power in the hands of the state.