DI BALIK SISTEM BANK SENTRAL NEGARA-NEGARA DUNIA

Summary

This video explores the history and power dynamics behind the U.S. dollar and the Federal Reserve (The Fed). It traces the origins of America's central banking system, highlighting the role of private bankers like the Rothschild family, and the influence of the Federal Reserve on global finance. The script critiques the independence of central banks, comparing the U.S. system with China’s government-controlled model. It also delves into the socio-political impacts of monetary policies, explaining how The Fed's actions shape global economies, financial crises, and the relationship between governments and banking elites.

Takeaways

• 😀 The U.S. Dollar (USD) became the global currency despite the fact that the U.S. government does not directly control its production. Instead, it is managed by the Federal Reserve (The Fed), which is independent from the U.S. government.
• 😀 The Federal Reserve (The Fed) is a private institution that operates independently of the U.S. government, much like Indonesia's central bank, Bank Indonesia. This independence allows it to control the monetary policy of the U.S.
• 😀 The U.S. Dollar is the global benchmark currency. Other countries' economies and currencies are largely tied to the strength of the dollar, which affects exchange rates like the Rupiah.
• 😀 The value of the U.S. Dollar has increased significantly over time, from around 9,000 IDR to 15,000 IDR per USD, which is partly influenced by the Fed's monetary policies like raising interest rates.
• 😀 The history of the U.S. Central Bank goes back to 1781, with the establishment of the Bank of North America. This bank provided loans to the government to finance wars, a model that persists today.
• 😀 The first and second banks of the United States were controlled in part by private shareholders, including influential international banking families like the Rothschilds, who attempted to exert influence over U.S. policy.
• 😀 The Rothschild family, through figures like Nathan Rothschild, threatened the U.S. government with war if the central bank's charter was not renewed, leading to political tension and resistance from U.S. presidents.
• 😀 Andrew Jackson, the U.S. President, succeeded in closing the second U.S. central bank despite threats from European bankers, demonstrating the power struggle between the U.S. government and private banking elites.
• 😀 The Federal Reserve, established in 1913, was formed through a complex set of events, including a financial panic caused by stock market collapse, orchestrated by figures like J.P. Morgan, who ultimately benefited from the crisis.
• 😀 The Federal Reserve operates under the control of private banks, such as the Bank of England, Bank of Italy, and others, with no direct government ownership. These private institutions dictate U.S. monetary policy and the nation's economic direction.
• 😀 China is an exception to the global trend of central banks being independent of government control. China's central bank operates under direct government influence, which has contributed to its rapid economic rise and status as the world's second-largest economy.

Q & A

How did the US Dollar become the global reserve currency?

The US Dollar became the global reserve currency due to the dominance of the United States in the global economy, supported by its Federal Reserve system, which controls the issuance and management of US money. Despite being independent from direct government control, the Federal Reserve's policies significantly impact global finance, including currency values and international trade.

Why is the Federal Reserve (The Fed) independent of the US government?

The Federal Reserve is independent to avoid political interference in its monetary policies. This independence allows the Fed to make decisions based on economic data rather than political pressure, ensuring long-term financial stability and controlling inflation.

How does an increase in the Federal Reserve's interest rates affect global currencies?

When the Federal Reserve raises interest rates, investments become more attractive in the US due to higher returns. This causes a flow of capital into the US, strengthening the US Dollar. As a result, other currencies, such as the Indonesian Rupiah, typically weaken in comparison.

Why does the value of the US Dollar fluctuate so drastically, such as from IDR 9,000 to IDR 15,000?

The value of the US Dollar fluctuates due to a variety of factors, including changes in interest rates, international trade balances, and economic crises. The Federal Reserve’s monetary policies, especially regarding interest rates, play a critical role in determining the strength of the Dollar.

What was the role of the first two central banks in the United States, and why were they shut down?

The first two central banks, the Bank of North America (1781) and the First Bank of the United States (1791), were established to help finance the country's wars and economic needs. However, both faced opposition, primarily due to concerns over the concentration of financial power in private hands, leading to their shutdowns.

How did Nathan Rothschild influence American central banking policies?

Nathan Rothschild, a prominent international banker, threatened the US government with dire consequences, including war, if the charter of the Second Bank of the United States was not renewed. This shows the immense influence private bankers had on US monetary policy during the 19th century.

What was the outcome of President Andrew Jackson's efforts to shut down the Second Bank of the United States?

President Andrew Jackson succeeded in shutting down the Second Bank of the United States despite strong opposition from bankers like Nathan Rothschild. Jackson's victory was pivotal in reclaiming control of US monetary policy from private interests, but it came with significant political and personal risks, including an assassination attempt.

How did the creation of the Federal Reserve in 1913 occur?

The Federal Reserve was created in 1913 after a series of events, including a financial panic orchestrated by JP Morgan and other elites. These bankers, who had ties to European banking families like the Rothschilds, played a significant role in the creation of the Federal Reserve to stabilize the US economy and ensure their financial influence.

Who are the key private shareholders of the Federal Reserve?

The key private shareholders of the Federal Reserve include major international banks such as the Bank of London, Warburg Bank, Lehman Brothers, and several others. These banks, controlled by wealthy private interests, hold shares in the Federal Reserve, which is unique among central banks.

How do other countries’ central banks differ from the US Federal Reserve?

Most countries have central banks that operate independently from their governments, similar to the US Federal Reserve. However, China is an exception, where the government directly influences the central bank’s policies, contributing to China’s distinctive economic model and its rise as the second-largest economy in the world.