The central banking system is a crucial component of a country’s monetary and financial framework. It plays a pivotal role in managing a nation’s currency, money supply, interest rates, and overall economic stability. Central banks operate as independent entities or government agencies and are responsible for implementing monetary policy to achieve specific economic goals.
The Fed was formed in 1913 The Federal Reserve System, often referred to as the Fed, was indeed established in 1913. It is the central banking system of the United States and plays a crucial role in the country’s monetary and financial stability. The Fed was created in response to a series of financial panics […]
Wealth preservation refers to strategies and actions taken to protect and maintain the value of one’s assets over time. It involves managing risks and minimizing potential losses to safeguard wealth and ensure its long-term sustainability. These strategies can include diversification, risk management, asset allocation, regular monitoring and review, and tax-efficient strategies. Wall Street will not […]
Look at a paper dollar bill in your pocket. This note no longer says One Dollar in silver payable to the bearer on demand. Our currency no longer says Twenty dollars in gold payable to the bearer on demand. Our currency is a Federal Reserve Note, it says it right on there in big capital […]
The term petrodollar refers to the concept of the United States dollar (USD) serving as the dominant currency for international oil transactions. It originated in the early 1970s when a series of agreements were reached between the United States and Saudi Arabia. Secretary of State Henry Kissinger played a crucial role in these negotiations. The […]
The term fiat money refers to a currency that has value solely because a government or central authority has declared it to be legal tender. Fiat money is not backed by a physical commodity like gold or silver but rather by trust and confidence in the issuing authority. Fiat money is indeed created by central […]
A bank failure occurs when a financial institution becomes unable to meet its obligations to depositors and creditors, leading to its closure and liquidation. It signifies that the bank’s assets are insufficient to cover its liabilities, resulting in a loss of confidence and stability in the institution. Bank failures can happen because of insolvency, poor […]
The gold standard is a monetary system in which a country’s currency is directly linked to a fixed quantity of gold. Under the gold standard, the value of a currency is determined by the amount of gold that can be exchanged for it. For example, if a country’s currency is linked to gold at a […]
In March 2008, Bear Stearns went out of business. Before their collapse, both the Treasury Department and the Fed insisted that the housing sector and the economy were just fine. After Bear Stearns went under, the Fed used its magic behind the curtain to push buttons and click keys. In June of that year, Treasury […]
Let’s define what Social Security is supposed to be according to the American Heritage Dictionary. Social Security is a government program that assists persons faced with unemployment, disability, or aging. Social Security is financed by the assessment of employers and employees. Social Security is economic assistance and a system whereby the state either through general […]
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