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US Economis Timeline
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seperation from europe currency created
U.S preparing for the war decided they needed a new currency. To fund the war and to distinguish them as its own country seperating them from Europe. -
first national bank
although farmers thought that a natonal bank would benifit the wealthy and hurt the poor the first bank was chartered until 1811 -
mint act of 1792
the act established the dollar was the main unit of currency -
second bank of ua charted
served as a the main depositry of goverment revinue -
andrew jackson campaign
he believed that it was a way to give few man to much power and it was a way of creating inflation. he was promenent in gold and silver -
manufactured boom
money supply increased 84% by second bank of US -
depression
343 0f the 850 banks in the US close entirely as large banks get wealth and power -
Lincoln over-rules debt based money
bankers would only lend goverment money under certain conditions with high interest rates, so lincoln issued "greenback" mone. this followed with a great economic expansion -
gold stand act
congress passed the Gold stand act, which tied the value of U.S. currency to gold. By world war 1 the US was the only country that had succefully maintained the gold standard act -
banking panic of 1907
the market decreased signifigantly. everybody was trying to get ther money out at the same time across the nation. brought up banking reform. this formed the fedral reform -
bankers meet secretly on jekyll island to draft fedral reserve banking legislation
some of the nations most powerful bankers met and discussed drafting a private central banking systen -
The Fedral Reserve
in response to the bank runs in the early twentieth century. congress passed the fedral reserve act which established the fedral eserve as the central bank f the US -
income tax established
taxes that insures that the citizens would take care of the debt made by the fedral bank -
The Federal Reserve Floods the Economy with Cash and Credit
From 1921 to 1929 the Federal Reserve increased the money supply by $28 billion, almost a 62% increase over an eight-year period.This created another “boom”. -
Federal Reserve Contracts the Money Supply
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. -
“Black Thursday”, Stock Market Crash
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 Financial Services Modernization Act Allows Banks to Grow Even Larger
It repealed part of the Glass-Steagall Act of 1933 and allowed investment banks, commercial banks, securities firms, and insurance companies to merge. Citigroup was a major proponent of this particular bill -
Investment Banks and the SEC Cut a Deal
five of the biggest investment banks, including Bear Stearns and Goldman Sachs , met with members of the Securities and Exchange Commission (SEC), urging them to allow voluntary regulation of themselves, so they could determine themselves how much money they could make up out of nothing to loan into circulation. This is known as the banks leverage ratio, or amount of assets to borrowing ratio. Up until 2004, the amount of deb -
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. In 2008, J.P. Morgan Chase & Co. bought up both Washington Mutual -
JP Morgan Chase Reports Record Profits
The bank made a record profit of $17.4 Billion in 2010
