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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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.

The Heart's picture

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

ZerOhead's picture

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

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.

economics9698's picture

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

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



Millivanilli's picture

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

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.

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...

Colonel Klink's picture

+17 TRILLION and counting!!!

kralizec's picture

So, you found my sunken ammo stash!

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.

Colonel Klink's picture

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

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.

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

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.

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.


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

Seasmoke's picture

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

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.

bonin006's picture

because it sounds impressive

sleigher's picture

Because the definition of federal is contract or compact.

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."

LetThemEatRand's picture

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



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.

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

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
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

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?

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

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. 

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

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!

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.....



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

Yes_Questions's picture



Oops, spilt Koch.

Yes_Questions's picture



expensive and "promising" before the spill

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.  

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?



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.


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.



Pareto's picture

+ 1 Love your diplomacy OTS - as always.

SunRise's picture

OTS66 - The most patient person on ZeroHedge!

OneTinSoldier66's picture

TY guys. I appreciate it. I do try.

K-Dog's picture

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