The Federal Reserve System was created after the “Panic of 1907” and ever since its inception in 1913, the Fed is one of the most powerful modern central banks in the world. Moreover, the Fed has always been either celebrated or criticized for stepping in whenever the U.S. is stricken with some kind of fear. During the coronavirus outbreak, the central bank has unleashed a massive number of monetary easing tactics, which has prompted editors from Wikipedia to add updated information to the Fed’s Wiki page. The central bank’s page now states: “[the] COVID-19 pandemic in 2020 [has] led to the expansion of the roles and responsibilities of the Federal Reserve System.”
Panic at the Knickerbocker Trust – 1907
During the last few months, Americans have witnessed the power of the Federal Reserve’s shenanigans as the central bank has created trillions of dollars out of thin air. The expansion of the Fed’s balance sheet has ballooned to upwards of $6.9 trillion and the bank slashed the benchmark interest rate to zero percent. U.S. citizens have been indoctrinated to believe that the central bank is there to protect the country’s monetary system and keep it stable.