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In October 1991, we warned that convertibility would evolve from a currency-board-like system into something closer to a central banking system.
A Chinese mother sues the Federal Reserve over her shrinking cash (this infographic explains how the central banking system really works).
By his calculations, the euro zone — through its central banking system and its national banks — has just 27 billion euros in outstanding credit exposure to Cyprus.
The Panic of 1907 contributed to the passage of the Sixteenth Amendment, in 1913, which granted Congress the right to levy an income tax, and to the establishment of a central banking system, the Federal Reserve.
"Ten years ago this was a country that did not even have the vocabulary of trade, the vocabulary of a legal system, the vocabulary of economics, the vocabulary of a central banking system," he said.
As president, he destroyed America's central banking system, and he forcibly deported Native Americans from Georgia to Oklahoma along the Trail of Tears, an action just short of genocide.
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He said that corrupt governments and flimsy central banking systems would be Bitcoin's true test.
Disaster was averted in the crisis of 2008 in the US and during the current debt crisis in Europe after the intervention of governments in the market through their central banking systems.
The central bank system in Europe is akin to letting the government of California issue bonds, pledge them as collateral at the San Francisco branch of the Fed, and then get fresh dollars to pay for its budget deficit.
But Clinton stopped short of signing on to a bolder reform proposal that Fed Up rolled out in April, which would turn the central bank system into an entirely public institution.
The likely compromise over risk-sharing within the euro-zone central-banking system may cast a shadow over the effectiveness of QE, however.
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