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Govt 200: The Role Of The Federal Reserve System

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Economics Analysis Essay
Jennifer Trammell
GOVT 200 – C04

It is stated in the bible that God is the ultimate creator of all things. America is so used to looking for a quick fix to our economy that we welcomed a system that could create money without backing to lend to banks in case they over extend themselves. There is no quick fix for our economy, only working hard and applying the biblical principles set by God can set us straight. Unfortunately, the way our economy was created and is still run, we have cut ties with biblical principles and the vertical line where God is above man, and set a standard for a morally unjust system to protect our money.
The Role of the Federal Reserve The chartering of banks has been a highly …show more content…

While it is not written anywhere in black and white admitted by the Federal Reserve System, it is solely responsible for the Great Depression in 1929. The Federal Reserve can make money “out of nothing” because it is not backed by gold or anything at all. This unrestricted money creation then led to a bubble in the stock market and set up the economy for a completely catastrophic downfall. People started to buy stocks because of the artificial low interest rates set by the Federal Reserve creating money. This caused the stock market to crash and led into the Great Depression. “What is forgotten is that subsidies are paid for someone, and that no method has been discovered by which the community gets something for nothing.” (Hazlitt, 1979, p. 122). You cannot create money out of nothing and expect the economy to not be altered or the dollar not to be even more depreciated. The more money in circulation the less that the money is worth. The Federal Reserve has most certainly overstepped its boundaries in this …show more content…

This is almost exactly a perfect way to summarize America’s relationship with the Federal Reserve System. The Federal Reserve is violating ethical and biblical principles because it creates an unstable and inaccurate currency. There is no quick fix for our economy through the creation of money. With the creation of something out of nothing the government is creating the horizontal line from man to man and cutting out the vertical line wherein God is above man and is the creator of all and everything, including the Federal Reserve and the monetary

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