The Second Bank of the United States, Its Money Printing, and its Demise
Following up on Bullion TP’s post yesterday on The First Bank of the United States of America, today we will cover The Second Bank of the United States of America (“Second Bank”) - the last central bank before we were conned into accepting the Federal Reserve.
As a reminder, the First Bank (central bank) was terminated when its charter was not renewed as led by James Madison’s VP George Clinton when he cast the deciding vote against it in 1811. As pointed out by @midnightrider12, the War of 1812 happened shortly after the bank’s charter was not renewed. This should be viewed as tied to the U.S. rejecting the bank - because it was. It was punishment from psychopaths who ran the Bank of England (Rothschilds). The banks’ establishment was called for after the War of 1812 as the U.S. Government’s monetary situation was uncertain and bond holders (read: Rothschilds and other wealthy interests back in London) wanted more surety of payment on their U.S. Government Bonds. The bank was established in 1816 when James Madison signed it into law.
Unlike the Federal Reserve lie, the Second Bank was acknowledged as a private bank with private owners but the Treasury was the largest shareholder at 20%. The Second Banks’ primary focus was to reign in unchecked private bank notes that they scared the population into believing would cause a credit bubble (this would not have happened if the notes were backed by precious metals). Not surprisingly, the Second Bank failed almost entirely at this mission (likely intentionally) and printed massive amounts of currency that fueled a speculative land boom (sound familiar?).
The Second Bank then pulled back all credit issuance and reduced the release of currency to a crawl, resulting in a long-lasting recession with large amounts of unemployment and a material drop in property values that persisted until 1822 (is this coming for us now?). This outcome laid the foundation for Andrew Jackson’s rise in popularity along with the anti-Bank sentiment. Bullion TP will cover the Jacksonian Bank War in more detail tomorrow, but the summary is Jackson became President and fought hard to have the Second Bank’s charter revoked and it became a private bank in February 1836. Likely not surprising to anyone, the bank went bankrupt as a private entity and had to liquidate in 1941.
Analysis: Much like in our own times, the bank that was supposed to be responsible for ensuring economic stability did not stabilize jack shit and either intentionally or through its incompetence made the economic problems worse than if there had been no central bank.
Tomorrow Bullion TP will cover the Jacksonian Bank War which is large enough to have its own post. Also, we really like Andrew Jackson!
Following up on Bullion TP’s post yesterday on The First Bank of the United States of America, today we will cover The Second Bank of the United States of America (“Second Bank”) - the last central bank before we were conned into accepting the Federal Reserve.
As a reminder, the First Bank (central bank) was terminated when its charter was not renewed as led by James Madison’s VP George Clinton when he cast the deciding vote against it in 1811. As pointed out by @midnightrider12, the War of 1812 happened shortly after the bank’s charter was not renewed. This should be viewed as tied to the U.S. rejecting the bank - because it was. It was punishment from psychopaths who ran the Bank of England (Rothschilds). The banks’ establishment was called for after the War of 1812 as the U.S. Government’s monetary situation was uncertain and bond holders (read: Rothschilds and other wealthy interests back in London) wanted more surety of payment on their U.S. Government Bonds. The bank was established in 1816 when James Madison signed it into law.
Unlike the Federal Reserve lie, the Second Bank was acknowledged as a private bank with private owners but the Treasury was the largest shareholder at 20%. The Second Banks’ primary focus was to reign in unchecked private bank notes that they scared the population into believing would cause a credit bubble (this would not have happened if the notes were backed by precious metals). Not surprisingly, the Second Bank failed almost entirely at this mission (likely intentionally) and printed massive amounts of currency that fueled a speculative land boom (sound familiar?).
The Second Bank then pulled back all credit issuance and reduced the release of currency to a crawl, resulting in a long-lasting recession with large amounts of unemployment and a material drop in property values that persisted until 1822 (is this coming for us now?). This outcome laid the foundation for Andrew Jackson’s rise in popularity along with the anti-Bank sentiment. Bullion TP will cover the Jacksonian Bank War in more detail tomorrow, but the summary is Jackson became President and fought hard to have the Second Bank’s charter revoked and it became a private bank in February 1836. Likely not surprising to anyone, the bank went bankrupt as a private entity and had to liquidate in 1941.
Analysis: Much like in our own times, the bank that was supposed to be responsible for ensuring economic stability did not stabilize jack shit and either intentionally or through its incompetence made the economic problems worse than if there had been no central bank.
Tomorrow Bullion TP will cover the Jacksonian Bank War which is large enough to have its own post. Also, we really like Andrew Jackson!
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