Daily Archives: January 14, 2011

A Case For Central Banking

I oppose a central bank.  Nevertheless, I am interested in arguments in favor of one.  The following is an extended excerpt from Henry C.K. Liu, courtesy of Max Keiser’s blog, on the early history of central banking in the United States, beginning with the first and second Banks of the United States.  The first one’s charter expired in 1811.  The second started up in 1816 until it was finally killed off by President Andrew Jackson in 1836.

One thing I think can clearly be described as an error of history is that Mr. Liu argues that a central bank is necessary for the robust development of young economies, and he asserts that the American experience with the first and second United States Banks bears this out.  Yet the period from 1836 to 1913, in which the US had no central bank, witnessed an astounding level of economic development.

Other than that, I commend this section to anyone who wants to keep an open mind and is willing to entertain ideas without necessarily accepting them:

“History and Politics of Central Banking in the US

In the United States, central banking was not born until 1913 with the establishment of the Federal Reserve System. The first national bank in the US was the Bank of the United States (BUS), founded in 1791 and operated for 20 years, until 1811. A second Bank of the United States (BUS2) was founded in 1816 and operated also for 20 years until 1836.
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Goldman/Facebook Deal: Another Super-Hyped Front-Running Scam

Don’t have anything to do with it, if you were even thinking about it.  See here and here.

H/T Matt Taibbi (Rolling Stone), Nomi Prins (Daily Beast)

It would be funny if this hustle got wiped before it even hit the “market”.

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