Right. And the Feds responsibilities are to their member banks, not to those who are forced to use their fiat money and fractional reserve paper.
Formerly, their strongest enemy (or competitive factor) was the Savings and Loan (S&L) industry. With the help of their friends at the Financial Accounting Standards Board (FASB), they crushed S&Ls, taking over many of them during the "S&L Crisis" which began in the late '80s. This was done by changing S&L accounting rules that bankrupted many and caused others to sell their assets (or become banks).
Much later, FASB (for whatever reason) applied the same accounting standards to the banks. The result was the Financial Crisis of 2008 and the collapse of Lehman Brothers, as well as the demise of many smaller member banks of the Fed. Thereafter, brokerage firms were prohibited from engaging in banking, a change that seriously impacted sources of money for mining, particularly for explorers.
But guess what? After some months of damages to all sectors of the US and global economy, FASB reversed themselves leaving the largest Fed member banks stronger than ever, and with even more control over the US financial system. Was this all toward socializing the financial system?
But what about state chartered banks, community banks and credit unions, you may ask? Yes, that is an interesting question. They could be someone's next target for elimination. |
