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The Federal Reserve: 100 Years Of Boom And Bust

Tyler Durden's picture


"If we evaluate an organization's performance by what it promised when it was created, the Federal Reserve has clearly failed the American people," is how Murray Sabrin concludes this documentary on the first 100 years of the Fed's reign. The sad truth, he details, is that "the USD has lost more than 95% of its purcahsing power since the Fed was created and the cost of living has skyrocketed since Nixon severed the last linkage between the USD and gold in 1971." In short, the revolution of 1913 shifted power from individuals, communities and states to the federal government and its powerful allies in the private sector.



Submitted by Murray Sabrin via,

Before we view the documentary, I'd like to put 1913 in historical perspective.

1913 was, in many ways, one of the most extraordinary years in American history. In fact, according to one analyst a revolution took place in 1913.

1913 began with the ratification of the 16th amendment, which gives the federal government authority to tax the income of the American people directly. We will explore the income tax on April 17 next year at a symposium I will moderate. So save the date April 17 at 7 PM in the Trustee's Pavilion.

In April of 1913, the 17th amendment to the Constitution was ratified ending the selection of US senators by state legislatures. Now the U.S. Senators would be elected directly by the people.

And on December 23 President Wilson signed the Federal Reserve Act giving the United States a permanent central bank.

All these events took place at the end of what is known as the Progressive Era, a time of supposedly great reforms to benefit the common man. Half a century ago historian Gabriel Kolko challenged the orthodox view in his trailblazing book, The Triumph of Conservatism. Kolko argued that the progressive era was in reality a time when big business interests used the power of the federal government for their own benefit at the expense of the general public.

One of the last so-called reforms of the era was the creation of the Federal Reserve.

In short, the revolution of 1913 shifted power from individuals, communities and states to the federal government and its powerful allies in the private sector. Hence, the Progressive Era expanded crony capitalism in America.

The documentary, The Federal Reserve: 100 Years of Boom Bust, explores the impact of the Fed on the US economy for the past century.



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Wed, 12/11/2013 - 22:47 | Link to Comment ebworthen
ebworthen's picture

A banker cabal creating a non-Federal agency controlled by the banks for the benefit of the banks while simultaneously robbing every American citizen blind with currency debasement and Trillion$'s of un-payable debt.

Wed, 12/11/2013 - 22:55 | Link to Comment The Heart
The Heart's picture

Here's a documentary for ya to check out some time. It is more about the owners of the fed.

Wed, 12/11/2013 - 23:21 | Link to Comment ZerOhead
ZerOhead's picture

Boom and Bust now turns to Doom and Dust...

Thu, 12/12/2013 - 01:43 | Link to Comment Rick Blaine
Rick Blaine's picture

To start, I'm not a troll...but I just came across this Forbes opinion piece...

You guys gotta read this shit:

I almost made myself a Google+ account so I could log in and post a comment asking whether or not it was a joke.

There are too many "good" one-liners to count.

The bits about Summers and The Bernanke are classic.

Thu, 12/12/2013 - 05:46 | Link to Comment economics9698
economics9698's picture

Hang the MF central bankers, take all their wealth, and send the relatives back to wherever the fuck they came from.

Wed, 12/11/2013 - 23:34 | Link to Comment Deathrips
Deathrips's picture

In monetary economics, fiat money is an intrinsically useless product, used as a means of payment. In some micro-founded models of money, fiat money is created internally in a community making feasible trades that would not otherwise be possible, either because producers and consumers may not anonymously write IOUs, or because of physical constraints.[ House of Cards]




Silver Bitchezzz



Wed, 12/11/2013 - 23:08 | Link to Comment Millivanilli
Millivanilli's picture

Are Americans as fat, stupid and lazy as the banksters believe.  Stay tuned.

Wed, 12/11/2013 - 23:13 | Link to Comment LetThemEatRand
LetThemEatRand's picture

I skipped to the end.  Yes.  The twist ending is that the Federal Reserve Act is a recipe book.  The meat is tastier when it is marbled, and it is more humane when the animals are raised without brains.

Thu, 12/12/2013 - 01:01 | Link to Comment Zionist Jew
Zionist Jew's picture

All goyim are stupid, but the American variety is definitely fat and lazy as well.

If Kissinger had any balls, we would have culled the herd by now...

Wed, 12/11/2013 - 23:54 | Link to Comment Colonel Klink
Colonel Klink's picture

+17 TRILLION and counting!!!

Thu, 12/12/2013 - 09:05 | Link to Comment kralizec
kralizec's picture

So, you found my sunken ammo stash!

Wed, 12/11/2013 - 22:53 | Link to Comment Four chan
Four chan's picture

enslave a free people to debt, capture all assets through boom and bust cycles it creates with debt out of thin air.


the fed res "system" just another word for high treason.

Wed, 12/11/2013 - 22:52 | Link to Comment Greenskeeper_Carl
Greenskeeper_Carl's picture


Wed, 12/11/2013 - 23:55 | Link to Comment Colonel Klink
Colonel Klink's picture

And since we're living 1984, that is to say BACKWARD!  Towards enslavement once again.

Wed, 12/11/2013 - 22:57 | Link to Comment Umh
Umh's picture

This "the revolution of 1913 shifted power from individuals, communities and states to the federal government and its powerful allies in the private sector. Hence, the Progressive Era expanded crony capitalism in America." is the problem. The ability to take your own money and give it back to you or to someone else sucks.

Wed, 12/11/2013 - 22:59 | Link to Comment Greenskeeper_Carl
Greenskeeper_Carl's picture

nice of wilson to do that right before christmas, gotta make sure it happens while no one is paying attention. The worst part about this is that not more than 1 person in a thousand knows any of this, and thats probably optimistic. Too busy talking about how either the red team or blue team is screwing the whole country, never realizing where the real power lies, and that all their politicians are just sock puppets for the big banks/MIC anyway. thank you, american education system. ensuring each generation is a little dumber than the last, just like they ensure each dollar is worth a little less than the dollars of the last generation

Thu, 12/12/2013 - 00:55 | Link to Comment OneTinSoldier66
OneTinSoldier66's picture

I don't hate saying this...


I think there is hope. I don't watch T.V. but I know people that do. Last night, ordinary newscasters on the regular old evening news talked about Interest Rates, The Federal Reserve, and Quantitative Easing. You could not have imagined this stuff actually being talked about on the evening news several years ago. It seems to me that people rejected more war(re: Syria). Here where I live, higher taxes "for the children!" in public schools was rejected by voters. The voters made it clear they want the education system worked on/fixed within the current income that it's already receiving from taxpayers.

Thu, 12/12/2013 - 08:50 | Link to Comment SmallerGovNow2
SmallerGovNow2's picture

OTS66, hope you are right...

Thu, 12/12/2013 - 09:39 | Link to Comment CH1
CH1's picture

he worst part about this is that not more than 1 person in a thousand knows any of this

Which is OUR problem to fix.

Inform your family and friends (with kindness and patience), talk about it at work, at the grocery store, on call-in radio.


Thu, 12/12/2013 - 16:08 | Link to Comment Greenskeeper_Carl
Greenskeeper_Carl's picture

why would anyone down vote that? and you are right, and i do try. And OTS66 i sure do hope you are right. Stossel on fox news actually ran a special on this a few weeks back. couldnt believe he would do it, and that fox would run it. missed A LOT, but you gotta ease people into it. start off with the full truth and they will offer you a roll of aluminum foil to make yourself a new hat

Wed, 12/11/2013 - 23:00 | Link to Comment Goldilocks
Goldilocks's picture

Wall•e Clip: Vacuum (1:02)

Wed, 12/11/2013 - 23:04 | Link to Comment Seasmoke
Seasmoke's picture

If it is not Federal......why would they call it Federal Reserve ?

Wed, 12/11/2013 - 23:37 | Link to Comment BlackChicken
BlackChicken's picture

Because its very name is s lie.

Because it was born on a lie and deception.

Because every owner is a liar.

Because every person involved lied about it.

Because every politician is bought by it.

Because its in the process of owning everything.

This is by far the biggest scam in the history of the world.

Thu, 12/12/2013 - 01:07 | Link to Comment bonin006
bonin006's picture

because it sounds impressive

Thu, 12/12/2013 - 08:45 | Link to Comment sleigher
sleigher's picture

Because the definition of federal is contract or compact.

Thu, 12/12/2013 - 08:52 | Link to Comment Ghordius
Ghordius's picture

in order to avoid calling it the Third Bank of the United States? though do you know a few facts about the Second Bank of the United States

from wiki: "A private corporation with public duties, the bank handled all fiscal transactions for the US Government, and was accountable to Congress and the US Treasury. Twenty percent of its capital was owned by the federal government, the Bank's single largest stockholder. Four thousand private investors held 80% of the Bank's capital, including one thousand Europeans. The bulk of the stocks were held by a few hundred wealthy Americans. In its time, the institution was the largest monied corporation in the world."

Wed, 12/11/2013 - 23:08 | Link to Comment LetThemEatRand
LetThemEatRand's picture

"That's why I'm richer than you."  -J Dimon.  



Wed, 12/11/2013 - 23:20 | Link to Comment sixsigma cygnus...
sixsigma cygnusatratus's picture

"Good morning.  I am pleased to be before the committee today, testifying about…but we're gonna need some bailout cash first, PDQ."

- J Dimon.

Thu, 12/12/2013 - 00:02 | Link to Comment LetThemEatRand
LetThemEatRand's picture

"I think I lost a cuff link.  Anyone seen it?  Oh, that's okay everyone.  No reason to crawl around the floor.  Oh, there it is.  Thanks, Barney.  Everyone may take their seats.  Now the question was...." -J

Wed, 12/11/2013 - 23:11 | Link to Comment Hail Spode
Hail Spode's picture

" Income taxes on individuals are not needed to fund the legitimate functions of the federal government and I believe that they are not even intended to do so.  Instead, the purpose of an income tax is to give the central government power over each individual citizen, so that its minions can reward who they wish and punish who they wish.   Citizens of any means who want to speak out against the government must first consider what they have to lose.

Congressmen will have favors to sell with tax breaks.  The executive branch can instill fear and silence people who get too far out of line.    It is a tool of control rather than a necessary tool for funding the government.  It is a way for them to put their finger on you."

Some people think the solution is the so-called "Fair Tax."  It isn't.   It would just turn the IRS from an agency which audited your income to one which audited your spending. There are other problems with it as well.  

The solution is not to change the way in which the central government can demand taxes of individual citizens, but to eliminate that power all together.   The states should be a shield between the individual and the central government, since if a state has oppressive tax collectors, it will soon find itself without productive citizens.   It is much harder to escape the clutches of an abusive tax system controlled by a central government."   from "The Localist" blog
Wed, 12/11/2013 - 23:27 | Link to Comment Caviar Emptor
Caviar Emptor's picture

Federal Reserve was created in JP Morgan's image. He was the 'lender of last resort' before the Fed, during the crisis of 1907 when he backed the bank clearing houses to restore confidence. And during the panic of 1893 when he bailed out the federal government and seized greater control of major industries

It was all about banksters even before there was a Fed. Through successive engineered panics and bailouts (including the us government) they were able to seize and consolidate power. Some things haven't changed

Thu, 12/12/2013 - 08:49 | Link to Comment sleigher
sleigher's picture

And when he died his family discovered that he didn't actually own that massive fortune everyone thought he did but another wealthier family backed him.  What family?

Thu, 12/12/2013 - 09:14 | Link to Comment Ghordius
Ghordius's picture

yes, the FED was created on a template provided by JPM. yet that template already existed, both in form of the previous Second Bank of the United States, the previous First Bank of the United States and all the european central or national banks

what does a financial center want? to be the biggest and most exciting, of course, and attract moar customers. and, of course, it has to be competitive

context: when the FED was created, the biggest financial centers were London and Paris. and they had the Bank of England (at that time privately held, note) and the Banque of France as lenders of last resort

more context: does anyone here ever complain about the Sveriges Riksbank? It's the oldest central bank of the world. why is there so little to complain about that? can it be that it's how they behave that matters way more than anything else? btw, if you aren't Swedish, do you have any right to ask Sweden or any other foreign country to trash it's CB?

and the last piece of context: how do you seriously prevent a CB from monetization? well, it's easy. they need debt, in order to do that. no debt, no CB fuel

balance budgets at all levels, both state and households, and you'll never have issues with CBs

but if you do create mountains of debt, don't wonder where they eventually land

Wed, 12/11/2013 - 23:26 | Link to Comment yogibear
yogibear's picture

Bow down to your masters, the banksters, sheeple. One hundred years of stealing the citizens wealth and getting the sheep ready for debt slavery. Bankster technocrats replacing elected officials in other countries without the citizens fighting back.

Next raiding citizen bank accounts. 

Wed, 12/11/2013 - 23:58 | Link to Comment Colonel Klink
Colonel Klink's picture

Bow down before the masses and lay on this nice hard surface, just before the sharp shiny blade severs your head from your body.

-the proles

Wed, 12/11/2013 - 23:42 | Link to Comment Bárðarbunga
Bárðarbunga's picture


Thu, 12/12/2013 - 01:36 | Link to Comment K-Dog
K-Dog's picture

totally !

Wed, 12/11/2013 - 23:54 | Link to Comment DOGGONE
DOGGONE's picture

The mainstream news media are self-serving scum. Because they RARELY show the people these:
The news media discriminate by: "What is intellectual honesty's cash flow?"
Paid advertising funds the media!

Thu, 12/12/2013 - 00:08 | Link to Comment Kina
Kina's picture

We know how these things end, and they end unepectedly.


Those who thought they were safe become fugitives, new despots are made, the old executed or imprisoned.... until the new despost are replaced by something of the people...then repeat cycle.


Corrupt regulators will become scapegoats, friends will be sacrificed for survival. The politicians will sacrifice their paymasters when it is a choice between necks to the rope.


But it takes a long time to come....but can come unexpectedly at any time.....



Thu, 12/12/2013 - 01:08 | Link to Comment Zionist Jew
Zionist Jew's picture

It's a grand chess board and we see 10 moves ahead.  The mouth breathing goyim are nothing to fear.  Mossad blew up 3 high rises on national tv but the morons trusted their favorite bought personalities on left/right telievision to explain it all to them... lmao

Thu, 12/12/2013 - 00:11 | Link to Comment Yes_Questions
Yes_Questions's picture



Oops, spilt Koch.

Thu, 12/12/2013 - 00:12 | Link to Comment Yes_Questions
Yes_Questions's picture



expensive and "promising" before the spill

Thu, 12/12/2013 - 00:20 | Link to Comment New American Re...
New American Revolution's picture

Nixon put the Federal Government on steroids then by regionalizing the nation, taking the states completely out of the power loop as Congress bestowed upon the Executive Branch the powers of Congress.  

Thu, 12/12/2013 - 00:38 | Link to Comment OneTinSoldier66
OneTinSoldier66's picture

But, but, free money printed up out of thin air for a select privileged few benefits the common man, doesn't it? Don't we need wise overlords?



Thu, 12/12/2013 - 01:36 | Link to Comment K-Dog
K-Dog's picture

Baaaaah Baaaaah Baaaaah Baaaaah Baaaaah Baaaaah Baaaaah

Wise overlords, there is no such thing.  The only way anybody over you will be wise is if they can be held to account for their actions.  There is a tiny chance a particular overlord could place themselves below a power greater than themselves and hold themselves accountable but don't count on it.


Thu, 12/12/2013 - 02:13 | Link to Comment OneTinSoldier66
OneTinSoldier66's picture

Are you new here? Did you miss my  "/s" ...? Sorry, but I'm just not sure whether you're being facetious or not. I did give you a +1 though for what I consider to be a spot on accounting of the fact that, there is no such thing as a wise overlord. But maybe you missed my /s and thought I was asking the question seriously. It would appear appear so with your last sentence.


/s = sarcasm(just in case you didn't know. which means my post was done in sarcasm)




Wise Overlord = two words combined that can't make sense



EDIT: Okay. I see that you have been signed up to ZH for 1 week and 1 day. No sweat. I'll just give you a heads up to look out for "/s", OR "/sarc". Also note that, at times, some people on here make posts such that they feel their post is just so damn sarcastic that no one could possibly NOT take their post as being sarcasm, and do not put the /s or /sarc on the end. Just something to think about and be on the lookout for.



Thu, 12/12/2013 - 03:39 | Link to Comment Pareto
Pareto's picture

+ 1 Love your diplomacy OTS - as always.

Thu, 12/12/2013 - 06:26 | Link to Comment SunRise
SunRise's picture

OTS66 - The most patient person on ZeroHedge!

Thu, 12/12/2013 - 10:38 | Link to Comment OneTinSoldier66
OneTinSoldier66's picture

TY guys. I appreciate it. I do try.

Thu, 12/12/2013 - 18:00 | Link to Comment K-Dog
K-Dog's picture

Got it.  Augmenting sarcasm can be tricky.  We are on the same team.

Thu, 12/12/2013 - 00:43 | Link to Comment HalinCA
HalinCA's picture

Where did my dollar go?


Thu, 12/12/2013 - 01:10 | Link to Comment Zionist Jew
Zionist Jew's picture

fu2 anti-Semite

Thu, 12/12/2013 - 08:57 | Link to Comment sleigher
sleigher's picture

betrayed by many, now ornaments dripping above.

Thu, 12/12/2013 - 01:01 | Link to Comment Clowns on Acid
Clowns on Acid's picture the US at the Boom or Bust stage at the moment? Old Yellen is not going to let it "Bust", but it will.

Thu, 12/12/2013 - 01:20 | Link to Comment K-Dog
K-Dog's picture
I watched the whole thing and am entitled to an opinion.  I wish I had seen the credits first and seen that the Charles Koch Foundation had been one of the contributors.  The whole thing considers the FED in isolation ignoring that the economy is subject to external events having nothing to do with bankers and politicians.  The essential claim is that business left to its own devices will do fine and we don't need a central bank modulating business.  Business is advocated as the great cure all for all financial problems and any government intervention is perceived as the ghost of Vladimir Lenin galloping down main street.  Unregulated free markets are advocated as the great cure all.
Don't waste your time and if you want to learn about the history of the FED there are other sources.  I can't really say I learned anything I didn't already know and I don't know shit.  This is a republican libertarian brain dead circle jerk.
Thu, 12/12/2013 - 03:37 | Link to Comment Pareto
Pareto's picture

you got the "I don't know shit" part right.  But, that is all you got right.

Thu, 12/12/2013 - 18:06 | Link to Comment K-Dog
K-Dog's picture

The documentary was shallow opinionated and one sided. 

and "I dont know shit"  is /s

Thu, 12/12/2013 - 01:22 | Link to Comment alien-IQ
alien-IQ's picture

“I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world - no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men.”

- Woodrow Wilson

Thu, 12/12/2013 - 01:28 | Link to Comment K-Dog
K-Dog's picture

But in our personal lives we can choose to avoid using credit as much as we can and thus maintain a significat portion of personal freedom.  Buy a house and pay it off.  Unless you have to refinance it to save the life of someone you love don't refi the beast!  To carry no debt maximizes your freedom and in todays world you need all the freedom you can get!

Thu, 12/12/2013 - 07:40 | Link to Comment mvsjcl
mvsjcl's picture

This isn't about what one person can do to avoid personal debt. This is about a system that burdens every person with unavoidable and unpayable debt.

Thu, 12/12/2013 - 09:01 | Link to Comment sleigher
sleigher's picture

Nevermind that every dollar in his bank account is debt.  You want a coffee this morning?  You will pay for that with debt.  So how was that "carry no personal debt"?  That is all you carry.  slave...

Thu, 12/12/2013 - 01:28 | Link to Comment Lordflin
Lordflin's picture

I spoke with a young cab driver the other day... asked him if he understood the concept of cheap money. He responded that it was money derived from debt...

There is hope...

Thu, 12/12/2013 - 02:41 | Link to Comment q99x2
q99x2's picture

Evaluate them and arrest them. Lock the crooks up and prosecute them for financial terrorism.

Thu, 12/12/2013 - 04:31 | Link to Comment theprofromdover
theprofromdover's picture

The day a certain Mr J. Pierrepoint Morgan is recognised as the most evil influence in the 20th Century, is the day we turn the corner.

Thu, 12/12/2013 - 05:32 | Link to Comment Radical Marijuana
Radical Marijuana's picture

It is my understanding that, in his day, Morgan was more an American agent for the Rothschilds.

One indication of that was that, after his death, Morgan's personal fortune was not extremely big.

Thu, 12/12/2013 - 06:23 | Link to Comment new game
new game's picture

jp morgan would fuck his grandmother...

Thu, 12/12/2013 - 08:04 | Link to Comment A82EBA
A82EBA's picture

The people could just say no but they dont. Theyre not victims, theyre volunteers, theyre ignorant and until the game of monoploly is made illegal life will go on. The avg voter does not yet comprehend whats going on. Its natural to feel sorry for them. But if you do get it and youre not stackin then you pretty much screwed yourself.

Thu, 12/12/2013 - 08:14 | Link to Comment overmedicatedun...
overmedicatedundersexed's picture

 repost: the FED is on the up and up..never a whistle blower in it's 100 year many work for the FED and not one speaks evil of it..amazing.

Thu, 12/12/2013 - 09:02 | Link to Comment sleigher
sleigher's picture

Wasn't there an article on ZH recently, past month or so, of a guy from The Fed apologizing for his work at The Fed and him understanding the damage it has done?

I don't have the link and I may be misremembering...

Thu, 12/12/2013 - 11:50 | Link to Comment AmericasCicero
AmericasCicero's picture

The gentleman was wrong about the 1st Bank of US.  It began in 1791, not '81.  Bank of North America was 1782 and was the first central bank.  Small mistake but I have OCD with these things.

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