Anyone know the Fed does not come? And why the Fed could emerge as the ruler of America? Why the Fed could contribute to the American economy? Who is the person behind the leader Fed? This article will review about his American central bank, its origins and its journey to the present. Various obstacles and barriers faced by the Fed is very diverse, but the difficulties would be solved if the U.S. is not the Fed did not help.
What is the Fed
The Fed is a central bank with the Federal Reserve stands. Why is the Federal Reserve? Because of financial reserves from banks or the federal government have an agreement between the regions. Because it has a binding agreement called the States.
The origin of the Federal Reserve
Formerly a British colony invaded the United States. In 1775 the U.S. revolution began one reason is that King George III of England breaking currency interest-free American colonies and produced by American colonists for their own use, and forcing them to borrow money from the Central Bank in the UK with flowers , immediately making the American colonies in debt. This is one of the causes of the American revolution clutches of the British colonies.
In 1913, the bankers decided that there is a shortage of currency in the U.S., and the government can not issue currency anymore because of all the gold reserves had been used up. So that there is extra money circulation, a group of people set up a bank called “The Federal Reserve Bank of New York” who later popular with the Fed stands.
Then the Fed sells gold stocks owned, and bought by them for U.S. $ 450 million through the Rothschild Bank of London, Rothschild Bank of Berlin, Warburg Bank of Hamburg, Warburg Bank of Amsterdam (which controls the Warburg family-owned German Reichsbank with the Rothschild family ), Israel Moses Seif Bank of Italy, Lazard Brothers of Paris, Citibank, Goldman & Sachs of New York, Lehman & Brothers of New York, Chase Manhattan Bank of New York, and Kuhn & Loeb Bank of New York.
The Fed trip
The Federal Reserve is one of the most powerful banking organizations on the planet. The “Fed” sets all U.S. monetary policy as it tries to raise or lower interest rates on loans (which is not to directly fund raising or lowering the Discount Rate, or the rate of interest charged on short-term loans to private banks) as well as trying to control inflation, that is not to print more money to circulate, trying to get a higher interest rate or lower.
Even the smallest actions by the Federal Reserve could have a major impact on the buying and selling of stocks and bonds as well as the prices of goods in the United States that ultimately affect the level of mortgage refinancing. Investors waiting with baited breath when they know the Fed meeting, will be speaking publicly about the meeting. Prior to the announcement Wall Street is done, usually trading in the currency fluctuation will occur quite shocking speculation about what the Fed will do next. For that reason, be careful when trading approach of the leader of the Fed announcement, today is Bernake.