Rethinking 1913: Did the Federal Reserve Spark a Liquidity Crisis?

4 days ago
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Most Americans believe the Federal Reserve was created to protect the economy. But what if its true purpose was to control it—through engineered instability?

Before 1913, thousands of independent banks issued currency backed by tangible assets, creating a decentralized, competitive ecosystem. Liquidity flowed organically. But after the secretive Jekyll Island meeting in 1910, a new architecture emerged—one designed to centralize power and restrict money flow through artificial bottlenecks.

Fractional reserve banking became the norm, where up to 90% of money exists only as digital entries—never physically held. This creates a system mathematically destined for periodic liquidity crises. Not accidental. Inevitable.

The pattern is clear: boom cycles inflate asset values, followed by sudden contractions that wipe out smaller institutions and consolidate wealth upward. Each time, the Fed steps in—not as a neutral referee, but as the architect of the game.

This isn’t just history—it’s the operating system behind every major financial disaster since 1913.

📚 Sources and references are always pinned below for those who want to dig deeper.

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