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America's Independance
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Congress Creates the 1st US bank
Previously, the 13 states had their own banks, currencies and financial institutions. -
The Privately Owned Second Bank of the US was Chartered
It served as the main depository for government revenue, making it a highly profitable bank. -
Andrew Jackson vetoes 2nd Bank of the US Bank Charter Renewal
Andrew Jackson believed the banking system gave too few men too much power and caused inflation. He was also a proponent of gold and silver. -
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Manufactured “BOOM” Created by Central Bankers
Money supply Increases by 84%.The total money supply rose from $150 million to $267 million. -
Jackson Gives Executive Order to Stop Depositing Government Funds Into the Bank of the US
By September 1833, government funds were being deposited into state chartered banks. -
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The Great Depression
343 of the 850 banks in the US closed entirely as largest banks consolidated wealth and power. -
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Lincoln Issues "Greenbacks" to Fund the War
Lincoln issued his own currency – “greenbacks” – through the US Treasury, and made them official money. His soldiers went on to win the war, followed by great economic expansion. -
Banking Panic
New York Stock Exchange dropped dramatically as everyone tried to get their money out of the banks at the same time across the nation. -
Bankers Meet Secretly to Draft Federal Reserve Banking Legislation
Over the course of a week, some of the nations most powerful bankers met secretly off the coast of Georgia, drafting a proposal for a private Central Banking system. -
Income tax established -16th Amendment Ratified
Taxes ensured that citizens would cover the payment of debt due to the Central Bank, the Federal Reserve, which was also created in 1913.The 16th Amendment stated: “The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.” -
Federal Reserve Act Passed
Two days before Christmas, while many members of Congress were away on vacation, the Federal Reserve Act was passed, creating the Central banking system we have today. -
Federal Reserve Banks Open
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The Federal Reserve Floods the Economy with Cash and Credit
The “Roaring 20’s”-From 1921 to 1929 the Federal Reserve increased the money supply by $28 billion, almost a 62% increase over an eight-year period. -
Federal Reserve Contracts the Money Supply
In 1929, the Federal Reserve began to pull money out of circulation as loans were paid back. They created a “bust” which was inevitable after issuing so much credit in the years before. The Federal Reserve’s actions triggered the banking crisis, which led to the Great Depression. -
Stock Market Crash
“Black Thursday”-The most devastating stock market crash in history. Billions of dollars in value were consolidated into the private banker’s hands at the expense of everyone else. -
The Great Depression Begins
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Kennedy Issued an Executive Order that Authorized the US Treasury to Issue Silver Certificates, Threatening the Federal Reserve’s Monopoly on Money
This government issued currency would bypass the governments need to borrow from bankers at interest. -
Johnson Reverses Kennedy’s Banking Rule
Restores Power to the Federal Reserve -
The Financial Services Modernization Act Allows Banks to Grow Even Larger
Repealed part of the Glass-Steagall Act of 1933 and allowed investment banks, commercial banks, securities firms, and insurance companies to merge. The government gave Citi officials the opportunity to review and approve drafts before the legislation was introduced and to modify it as they desired. -
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The Federal Reserve Extends “Easy Credit”, Lowers the Federal Fund Rate from 6.5% to 1% and Sets up Another Financial “Boom”
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Federal Reserve Sets Off New “Bust” by Making Loans and Adjustable Rate Mortgages More Expensive, Raising Fed Fund Rates to 5.25%
This contracts the market. -
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Worst Financial Crisis Since the Great Depression
The financial crisis impacted people around the world – millions lost their homes, jobs, and retirement funds. Many of the smaller banks were absorbed by others, which allowed the biggest banks to further consolidate wealth and eliminate competition. -
JP Morgan Chase Reports Record Profits
The bank made a record profit of $17.4 Billion in 2010.
