Home » Uncategorized » Why the US has the most powerful currency on the planet

Why the US has the most powerful currency on the planet

”The system still had a lot of problems. Foremost was its tendency to go spectacularly bust—see 1873, 1884, 1890, 1893 and 1907—and sink the US economy into sometimes deep recessions. After John Pierpont Morgan organized a massive bailout during the panic of 1907, the government decided that relying on the kindness of private bankers probably wasn’t the best policy. A few years later, the Federal Reserve Act of 1913 created the US central bank, and endowed it with the ability to “furnish an elastic currency.” (Essentially, that meant the central bank could expand the money supply as needed to prevent creeping doubts about the availability of cash from turning into destructive runs on the banks.)”

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