The Fed was created in 1913 in response to the Panic of 1907. Its original mandate was to promote the sort of financial stability that would prevent or at least ameliorate this kind of banking crisis. 100 years later they’ve clearly made very little if any progress on this front.
The Panic of 1907 was so severe that it led to the creation of the Federal Reserve. Amen. pic.twitter.com/7UMn56r8hR
— Not Jim Cramer (@Not_Jim_Cramer) February 17, 2017
In fact, this original mandate has seemingly been entirely forgotten in the pursuit of Fed’s single greatest achievement since it’s creation: inflation. The purchasing power of the dollar has fallen fully 96% since the institution was first established.
Persistent inflation is a modern phenomenon pic.twitter.com/FZupzhNRO2
— The Long View (@HayekAndKeynes) September 12, 2017
All of this begs the (rhetorical) question: ‘What is the purpose of giving an institution the greatest power there is to give (control of the nation’s money supply) when it completely falls down in its single most important function and could hardly be more successful at destroying the value of your hard-earned savings?’