Banks Quotes
The bill passed, but Jackson, true to his word, vetoed it.
This frequent Jefferson quotation almost certainly was never written or uttered by him but was probably created by later opponents of private banks. It has never been verified from any studies of Jefferson’s prolific writings. Further the word ‘inflation” came into use in the 1860s and ‘deflation’ seems to have first been used in the 1920s. However, some ascribe it to a letter Jefferson wrote to Treasury Secretary, Albert Gallatin in 1802.
He did indeed kill the Bank of the United States by exercising the Presidential Veto on the legislation renewing the Bank’s government charter. The Bank was privately owned but handled all the fiscal functions for the Government and holding the United States deposits. The Bank owners and executives were not supports of Jackson and opposed him on many issues. Jackson thought it outrageous that a private bank, not under the control of the people or the representatives of the people, should have a monopoly on the banking functions of the United States. Vetoes were very unusual then. All the presidents before Jackson together vetoed only 12 laws. Jackson himself vetoed 13 including the Bank of America.
He said this as he threw them out of his White House office.
Many companies appear to be doing much better than they really are. Often they employ PR professionals to create that impression. Some companies are not even solvent, but the only way we can all tell is to have a recession generally or in that particular sector—the equivalent of the tide going out.
Jefferson was of the opinion that a central bank was unconstitutional and that it was a great economic danger to the nation, a view also held later by President Andrew Jackson.
Credit default swaps were in large part responsible for the melt down of the economy of 2008 and the Great Recession thereafter. A credit default swap was one of the favorite derivatives that became popular. Is an insurance policy that a company will pay off its bonds and not go bankrupt. It is a cross between an insurance mechanism and a stock exchange type security mechanism, and through heavy lobbying, escaped any kind of regulation. It cost a company no money to write a credit default swap, and they were paid to do so. As long as business and the economy was good, it was a terrific business but there was no way of ever knowing how much risk they were taking. So companies who wrote credit default swaps did not have to have the money to pay to back them up. When that happened in 2008, even the largest insurance company in the world collapsed because of the risk of having to pay the credit default swap and the U. S. Government had to take over the insurance company. In 2010, the Obama administration passed a financial reform bill that began to regulate credit default swaps. Buffet, the American who had made the most money in financial securities, realized the great danger not only to the company, but to the entire national economy. Most of the rest of the financial institutions, could make large amounts of money without have to have much capital as long as things went well. So credit default swaps began to exceed the other financial instruments in activity. Neither the Federal Reserve or the other government regulatory agencies chose to regulate these risky instruments nor even to require that they be publicly disclosed -- See {637987}, {637986} and {637992}.
In TR’s era, major corporations and trusts controlled many Federal, State, and local officials by various methods, the Most pernicious of which was bribery. Most major corporations had their own legislators, judges and executive officials.
FDR even admitted that very wealthy men and corporations controlled most U. S. governments including the administration of his own political party. Roosevelt did a great deal to improve the situation but by the latter years of the 20th century, private financial entities gained back much of the influence and control. The result was the Meltdown of 2008 and the Great Recession, where another set of regulations and laws (Dodd-Frank) was made law by the Obama Administration. However, the financial corporations still had enormous political influence as a result of unlimited campaign contributions to politicians and unlimited lobbying.
The last sentence echoes a quotation of Napoleon. See {630664} .
This was in the midst of the debate over The Recharter Of The Bank bill
There were little controls over usury in his time in India. Villagers often paid 500% or more to borrow money in a necessity like needing critical health care.
