“JP Morgan was the driving force behind the creation of the Fed, citing his experience during the panic of 1907.”
Yes - the merge of the interests of the major banks with the interests of the politicians that want to borrow money, and borrow more and back stop the banks using the taxpayers money.
“Yes - the merge of the interests of the major banks with the interests of the politicians that want to borrow money, and borrow more and back stop the banks using the taxpayers money.”
Well that’s nice but you are confusing the role of Congress and the Executive with that of the Fed. The Fed can’t increase the national debt by even one cent.
Politicians have been borrowing money since the days of the Continental Congress, which by my estimation predates the Fed by 130 years. They don’t need the Fed in order to borrow money. The Fed is simply irrelevant to the national debt. And it has no power to force taxpayers to do anything.
Nor can the Fed make taxpayers backstop the banks. There are two laws that I know of that have taxpayers backstopping banks, the FDIC and TARP. In both cases those are laws signed into effect by Presidents.