In light of our present financial crisis, it's interesting to read what Thomas Jefferson said in 1802:
"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered...I believe that banking institutions are more dangerous to our liberties than standing armies... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."
Do you agree or disagree with Jefferson's quote?
Explain your opinion in 2 paragraphs.
Anything less than 2 paragraphs will receive no credit.
"If American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered...", stated Thomas Jefferson on the issue of controlling banks relating to our current financial crisis. i believe we need to address power to ensure that power is stable. Having too much control can lead to the loss of the inferior.
ReplyDeletefirst of all, when a government doesn't interfere with a private bank, it leaves the bank to have a lot of authority in their hands. in other words, leaving it in charge of interest rate. when in debt, the borrowers will own 10X more money than the original amount. this will lead to the cause of deflation, resulting in lower levels of output, employment, investment, trade, profits, and prices. in other words, the great depression.
"..will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered..." what i think Jefferson is trying to say is that if the sub prime borrower is in excessive amount of debt and isn't able to pay back the bank, it will deprive you of your property and any other financial possessions leaving you and your family homeless.
given partial control to the banks, our economy will be stable. the federal government can ensure market discipline in the financial sector as well as the people themselves. This can help the system withstand both internal and external shocks, but would enhance the confidence of both the depositors and investors.
I agree with Jefferson’s quote “if people ever allow private banks to control the issue of their currency, first by inflation and then by deflation, the banks and corporations
ReplyDeletethat will grow up around them will deprive the people of all their property until their
children will wake up homeless on the continent their fathers conquered”. Deflation decreased the value of price level on goods, which can cause our country to be in recession and put the economy in danger. Inflation general explains the level of price on goods increase over time which loss the real value. It’s not fair to those people who work hard in the past and save up for the future reference knowing in the end that it’s worth less then its real value. Therefore I believe the issue power should be taken from the banks and restored to the people whom its property belong to. People work hard and should deserve what they work hard for.
I do agree with this quote mainly because , in the economic state the world is in today puttin ur money into a private bank can be dangerous .
ReplyDeleteif you put money into a private bank and something happens to that company 9 times out of 10 you would loose ur money unlike regular banks that are backed up by the federal reserve where as u can get your money back . So i do agree with Thomas Jeffersons Quote
It's amazing how Thomas Jefferson quoted this, and this political crisis still occurred. He practically warned us of the consequences and yet, the recession occurred. I think his quote was very informative and yet very true. The recession hit us very hard and many people lost jobs and ended up homeless.
ReplyDeleteThe inflation and deflation of prices also hurt everyone's wallets. This is one of the main reasons why people couldn't afford many thing, and were deprived of many needs. The banks shouldn't have been trusted.
In order to have a stable government in my opinion you would need banks. having all your money in your possession can cause you to spend it all which can cause a inflation.
ReplyDeleteso no i do not agree with Jefferson's quote because banks have shown to be very useful for people so regulation spending habits and helping your organize your money from what you save to what you use.
i absolutly agree with thomas jefferson!! in my view he basicaly predicted the present day u.s. economy. banks run everything now, from the car u drive to your paycheck to the house u live in. even down to your children. when you purchase a car u are forced to register it and forced to pay insurance, the banks fund the corperations that do this. when you mortgage a house, it belongs to the bank until u pay it off and even then, u still have to pay property tax which goes to the bank. when you get your paycheck, theres this thing called federal tax that the bank takes out of your check. theres no law stateing that federal tax must be paid. it was designed during the world war 1 to help fund the war and now the banks just decided to keep it without telling us the truth. and finaly, when u get married, on the back of your marriage liscence it says "all products of this union belong to the state" which means that any children conceived belongs to the state as a corperation instead of an individual which is why on your birth certificate your name is in all capitals instead of just the first letters. by it being in all capitals is wut makes u a corperation. by u being a corperation, that allows the government to take that birth certificate and bring it to the federal reserve and say, hey here is a healthy new born baby, we expect this being will earn about a million or so dollars in their years of working, we are going to take out a loan against this life as colateral and use the money u give us for the governments personal wants. this is why the national debt is so high.
ReplyDeletePrivate banks now days are not as popular, back in the 1800s though it was, that is because back then the federal banking system was non existent. Back in the 1800 private banks destroyed the economy by printing to much money which in turn became useless, since it was worth next to nothing.
ReplyDeleteFederal banks today are also terrible at doing their jobs. They over lend, they charge high interests, when people are not able to pay back and file for bankruptcy, it screws up our economy. Banks could possibly own everything we have, most of the stuff we have today is not even ours, we have to take out a loan to buy a house, so its technically the banks, same goes with cars. This is what Jefferson believed would happen, banks would eventually reposes everything and we would be left with nothing.