Witch Hunts and The Federal Reserve - Ainslie Insights

witch hunts and the Federal Reserve hi everyone and welcome to Angley insights brought to you by Angley bullion Angley crypto and the gold and silver standard as the Angley group celebrates 50 years today welcome back Alex who's written a fascinating article today that I'm very much looking forward to learning more about how you going today Alex I'm going very well how are you I'm good now I know you know witch hunts it's a a fascinating topic to be discussing particularly linking to the Federal Reserve let's get into it a can I you know what I want to do can I just say a quick hello to my daughter she knows uh what this is about so let's start with Thomas S who is this amazing Economist in um the US which in writing this I took the opportunity to research him and he's amazing some of the stuff he he um he's 93 years old he came from Carolina he grew up in Harlem in New York uh left school joined the army went to Harvard and then became an amazing professor of Economics he is 93 and just released a book he's awesome and some of these ideas that he's had over the last sort of since about the 1960s um have really started to rear their ugly heads um but as he would say it's all in history so this stuff that is going on at the moment has happened in history before um and it just keeps cropping up so um if any anyone gets a chance go and read about his stuff because it's very cool but one of the things he's spoken about is the basically the growth in government the corruption in government and um how things change not for the benefit of society within government but for the benefit of individuals whether they be politicians or um individuals we'll talk about the Federal Reserve in a minute like JP Morgan so um I thought I'd start with the Salem witch hun can we do that one yes certainly so that one's a really interesting one and the reason I picked that one in time was um it's probably relevance right now that one of the key issues in it was actually migration so in 1692 um uh to 1693 there was a war going on um there were a whole heap of migrants that moved to an area um in Essex which was in the USA and because of the strain on resources that was going on um people started scrambling around um people there was a group of uh people called the Putnams who decided that they wanted to have their own um municipality they got their own uh Minister and then people stopped paying taxes and then people started saying which which and then everyone started talking about witches uh the gossip the newspapers started talking about witches and lo and behold 20 people um 19 people were hung but what's interesting is you dig into the details the Putnams wanted land so they started M municipality um other people who were annoyed about it decided to stop taxes which took power away from a minister so he started saying witches and then there was a judge um who started the the Council of oil Oya and terminal who also went for power and basically started his own um Port so at the end of the day people running around calling each other witches and was for political game financial gain and the whole Community lost 20 people and no one was better off so like obviously there's a theme Here of corruption behind under underpinning all of that championing of causes like if you think about the example you've just given you've got lots of comparisons that people make right I think listening to that people be making comparisons to a whole raft of things that are going on at the moment when you not not just government this happens across everything it happens across Society companies um it's a fantastic analogy of people applying it to uh organizations well and that's what I was thinking because you've got you could even be thinking of it in in terms of gossips in your in your circle yourself um there there's lots of areas where that would work you then went and explored the link between that and the Federal Reserve and I thought that was really powerful because you've got we we've talked multiple times about how the Federal Reserve has changed its approach to society how it's you know there's there's a role it seems to be playing in the media uh where it never used to be as much you know it's it's sort of out there the the jawboning the discussing the you know trying to influence public perception all that together for us CU I thought that was really interesting so I just want to clear one thing up it's not always corruption it is you know you might get someone who's wealthy behind the scenes encouraging a politician for power it that person might give them a statistics so it might be um you know it might be the racial divide um this statistic is less um African-Americans are in University than um than anglos so statistic without investigation as to maybe the socioeconomic reasons or the um I mean uh Sal even brings up geography as one of the key differentials so it's not race only there's geography there's other things um but it is someone picking a statistic and championing it it's feeding it to the media and saying hey hey look at this this is what's going on without actually having without having an understanding of all of the statistics and without acknowledging that you can never understand all of the statistics but picking one statistic and championing Champion championing it um is what allows it to go on so ultimately you would suggest that there is a corruption at the end but that is not that everyone wants a finan or a power gain is that corruption not necessarily it's just human nature so I think that's a distinct differential um so in regard to the Federal Reserve um 1907 there was a banking crisis I mean we've talked about this before there was a run on the banks and JP Morgan um who was JP Morgan the person not JP Morgan um the bank at the time organized a meeting with all his fellow Bankers one of them um if you remember is rosart so there were quite a few of these uh famous Bankers in the mix and in 1907 they organized a back stop so uh $25 million was to be provided by these bankers and it back stopped the run on the banks because it provided shity for the banks which ultimately is what the Federal Reserve was meant to be set up to do but 1907 it was fixed we didn't have a Federal Reserve at that point in time the Federal Reserve did not come into 1913 but it seems the idea of the Federal Reserve was then championed at that point by a senator Nelson Aldrich who took it on and decided oh no if this happens again uh he chicken Litt the whole thing said if the sky falls again what are we going to do um we need a Federal Reserve so he championed it uh probably for his own political game political power but who did he involve in setting up the Federal Reserve the 1907 Bankers that fixed it before it was not ultimately the government that made all the decisions around the Federal Reserve it was a meeting on Jackal Island um held under the cover of night with duck Hunters with Bankers disguised as duck Hunters that um went to a to an island for a week and came up with the system and the Enterprise I guess that we now have as the Federal Reserve now what um S talks about is you know the FED represented hope but we've had so many programs that re represented represented hope that ended in disaster now we areund 10 years on from the establishment of the Federal Reserve and we have had more booms and busts than the his you know then in the history of Western Civilization the Fed was meant to be set up to um back stop Banks but in the 1930s we had more Banks than ever go you know disappear uh it was the biggest deflationary period in the history in western civilization history uh the Federal Reserve has not done what it was set up to do and because we have huge deflation and now we've had huge inflation they've ultimately failed and if you look at Society now JP Morgan's still a very big bank and they doing very well and Society does not look better off for what what the Federal Reserve was meant to be so at the end of the day those that benefited with a few and those that have suffered have been Society I one bit you said you said a bit earlier when you were effectively saying it's not always the intention of corruption right like when you say and that it was such a valid point because it isn't necessarily the intention but this idea of of championing we both struggle with that word today championing those causes the issue I suppose for me with everything that you've just said there is that you because you said no one has all the information which is true right no one has the whole the whole picture but when you're the fed or when you're the authorities in the FED even the chairman of the fed and you're coming across having putting putting out the information and pushing that cause does some responsibility then then come back on you that to go well yeah your intention might not be that it's corrupt but if you're use the example of the 2% inflation Target right like that and that's a really good example I think because I was listening to something just yesterday that was saying the origins of that was a Bank of New Zealand decision somewhere along the line that just said 2% like they just made it up it wasn't even a real thing it wasn't backed by anything and and there's been lots of research sense that that's about the right number but when you keep hearing something from someone in Authority like that pushing that cause it becomes it it gets a life of its own it grows into something much bigger what's your what's your thought on that okay we're gonna stop at one thing 2% is about the right number according to who and on what statistics so so let's just pull it back to you know crap feeds crap so who knows if 2% is the right number but if if you're specifically researching for 2% to be the right number you're probably going to come up with 2% is correct um so can you ask the rest of the question again well I I I was just thinking linking it all together right like is is that the modernday version of of this where it's the that you know is the fed the town gossip here that's sort of saying well you know like they're not they're not a 2% it should be at 2% it's and and is it is it similar like is there is there an analogy there between the the witch TRS right like is it is it sort of the same thing where you've got someone in that position of authority that's trying to do it maybe for their own objectives that don't really align so I would answer that in two ways so first way is yes so I mean a particularly among my understanding is and this might be wrong but I do understand that within the Reserve Bank there are a lot more Democrats and Republicans which just makes it Beyond biased at the start that I think is just something I've read as opposed to anything else um so if anyone wants to factually correct me on that I'm okay with that um the second part of this is is the Federal Reserve is no longer the problem the RBA is no longer the problem things are out of control we talk about fiscal irresponsibility the Federal Reserve has actually just become a scapegoat for governments to spend too much money and them to pretend they can fix it so you can come up with any number you would like right now but the Federal Reserve the RBA any any Bank in the world right now is as useless as its government in power and um if they continue to have uncontrolled spending and if they continue to do what they're doing it doesn't matter if the fed's corrupt or not uh it doesn't matter if the RBA is corrupt or not which I wholeheartedly don't think um they are powerless and it has become a powerless institution paying uh taxpayers money wages to keep up the fast of government spending um next week I'd like to bring up some examples of there's a um the opposition uh of Canada I can't remember his name at the moment have this great quote I'm going to bring it up next week because it was really fun um which was basically governments need to stop trying to do everything badly and start trying to govern properly uh they're spending too much money on all the wrong things uh as s keeps pointing out there is a proliferation of government agencies to do someone's doing and someone within the government suddenly has a CEO job at an agency there's just too much money being spent on useless non-governing things and the Federal Reserve is now useless look ABS very much looking forward to that next week just for the record and absolutely love that conversation I think it's it's great that we could just have that sort of deeper dive into I mean you you you bought it from someone who has is very experienced you know 90 what was it 91 years old which is impressive 93 years old very impressive that history and bringing it all together and when you start to look and pick apart some of those parallels it yeah it's so important because we can learn a lot from history there and it's it's I know it's an area you're really interested in it and you always find an interesting way to sort of dig into it so thank you for that looking forward to next week but thanks for that today thank you for having me thanks everyone for watching we'll chat again soon [Music]

Channel: Ainslie

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Id: PdEnB1g7NgE

Length: 15min 6sec (906 seconds)

Published: Wed Jun 19 2024