From Venetian goldsmiths issuing paper receipts, to America's first and second central banks - the Bank of North America in 1781, and the First Bank of the United States in 1791 - we arrive at the year 1836.
Chapter Two, on the beginnings of central banking, ended with: "The Second Bank (of the United States, chartered in 1817) was bitterly opposed by President Andrew Jackson, who made the existence of the Bank, and its power over the people, a central issue in his campaign... Jackson won, and in 1836 the Second Bank of the United States' charter expired, along with another central banking experiment."
So, why did Andrew Jackson, after a successful first term as President of the United States, bet a second term on breaking up the huge, monumentally successful bank?
John Meacham's biography of Andrew Jackson, American Lion, lays bare the General's very Jeffersonian fear of the power and influence of banking interests.
Jackson exercised his veto power when a bill for the Bank's recharter passed the Senate and (narrowly) the House, after a former recharter opponent, Samuel Pierce Carson, "had obtained a loan of $20,000 from the Bank, and had changed his opinion."
Jackson eventually overcame the Bank's arsenal of loans and favors by appealing directly to the voters.
- What You Absolutely Need to Know About "Their Paper Money" While government agencies print their currency's bills and stamp their coins, countries throughout the free world don't actually own their money. Guess who does... Read More...
What Everyone Absolutely Needs to Know About Money
I got my start studying economics at UCLA. That started me on a career that's lasted for more than 30 years, trading equities, bonds, commodities, currencies, derivatives, and real estate. It continues to be a great, rewarding career and it's afforded me a wonderful lifestyle.
No one is born with a mastery of these fields. It takes careful study and years of experience before one gets a real grasp of economics, money, and the markets.
But you have a great head start.
We live in the Information Age. There are hundreds of financial and business news outlets. Discount brokerages have opened up everywhere, putting the power directly in the traders' hands. The Internet offers a huge body of knowledge and opinion on investing, markets, and money.
All of this - and more - is available to each of us. But I've been wondering why there aren't more successful investors or traders. Then, in an "Ah-ha!" moment the other day, I realized why: No one teaches you how to "fish" the markets!
You know the old saying... Feed a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime.
That's just what I'm going to do. Starting today, and continuing on, I'm going to use our Insights & Indictments space to give vital insights on mastering the markets.
You'll have the benefit of more than 30 years of experience and success in the palm of your hand. You will be the master of your own destiny.
Your first lesson starts with money. Here's what everyone absolutely needs to know about it.Read More...