It greatly experienced many years of celebrated financial growth, based on the existing stock price appreciation in its earlier operations, before going on to face serious accounting problems. The financial problems cropped in the Corporation in
Bloomberg Paper money, too, is the responsibility of the Federal Reserve. At one time, the Federal Reserve Banks were legally required to keep large stockpiles of gold in reserve to back up these notes, but that requirement was abandoned and today the notes are backed up mostly by government securities.
But I do have one question: The Federal Reserve does not own any gold at all. We have not owned gold since so we have not engaged in any gold swaps. But it appears on your balance sheet that you hold gold. What appears on our balance sheet is gold certificates. When we turned in…beforewe did…the Federal Reserve did own gold.
We turned that over by law to the Treasury and received in return for that gold certificates. No, we have no interest in the gold that is owned by the Treasury. House Financial Services Subcommittee Hearings Clearly, there is a discrepancy between what we are led to believe is motivating the Fed and what it actually does.
This system codifies, institutionalizes, oversees, and undergirds a form of banking called fractional reserve banking, in which banks are allowed to lend out more money than they actually have in their vaults. And what that really means is that as the banking institution developed over several centuries, starting of course in Europe, it developed a practice of legalizing a certain dishonest accounting procedure.
In other words, in the very, very beginning if you want to go all the way backpeople would bring their gold or silver to the banks for safekeeping. Then, instead of changing or exchanging the gold coins, they could exchange the receipts, and people would accept the receipts just as well as the gold, knowing that they could get gold.
And so these paper receipts being circulated were in essence the very first examples of paper money. Well, the banks learned early on in that game that here they were sitting on this pile of gold and all these paper receipts out there. So we can create more receipts for gold then we have. No one ever questions the integrity of it or the ethics of it.
So it all starts with this concept of fractional reserve banking. The trouble with that is that it works most of the time.
But every once and a while there are a few ripples that come along that are a little bit bigger than the other ripples.
Maybe one of them is a wave. And more than seven percent will come in and ask for their gold. Maybe twenty percent or thirty percent. And well, now the banks are embarrassed because the fraud is exposed.
Banks are embarrassed, people lose their savings. You have these terrible banking crashes that were ricocheting all over the world prior to this time. And that is what caused the concern of the American people. They wanted to put a stop to that. And that was the whole purpose, supposedly, of the Federal Reserve System.
Was to put a stop to that.
But since the people who designed the plan to put a stop to it were the very ones who were doing it in the first place, you cannot be surprised that their solution was not a very good one so far as the American people were concerned. Their solution was to expand it.Our latest thinking on the issues that matter most in business and management.
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The New Century Financial Corporation is one of the renowned companies in the USA. It greatly experienced many years of celebrated financial growth, based on the existing stock price appreciation in its earlier operations, before going on to face serious accounting problems.
New Century Financial Corporation was originally founded in It was a Maryland corporation based in Irvine, California in business to originate, purchase, sell and service home mortgage loans. Apr 07, · New Century Financial Corporation Partners With National Association of Mortgage Brokers New Century Financial Corporation to Present at the Piper Jaffray Financial Services Conference.
Oct 24, · I find it interesting and curious that out of 8 hand-picked speakers on the panel not one slot was giving to anyone from within the environmental/forest protection community in Montana.