Alexander Lorenzo explains how the Panic of 1907 and JP Morgan's bailout led to the Federal Reserve's creation. Morgan essentially acted as a stablecoin, controlling money and credit during the crisis, a role the Fed later took over to maintain credibility and control.
The most powerful entity on the face of the planet when it comes to money was built to create the Federal Reserve. And if you understand anything about the Federal Reserve, essentially they control all of money. And here's a quick version of what happened. There was something called the Panic of 1907. And in the Panic of 1907, the Knuckelbucker Trust Company, they essentially took on too much clients. They went bankrupt. This caused a panic. When there's a panic, what people do is they go to the banks and they start withdrawing all their cash because they're scared to lose their money. JP Morgan was extremely rich. They go to JP Morgan and they're basically like, hey, Can you please give us money so that people don't freak out and we could actually give them their money back? Now, of course, JP Morgan had the cash. Allegedly, he sent his assistant to tell the public that they didn't have enough money, and what this did is it actually exacerbated the Panic of 1907. Everyone was panicking, and they started withdrawing money from every bank. We saw another bank go bankrupt, and it was just a big chaos banking problem. And then at a certain point, JP Morgan wanted to step in. Step in, and he actually did have the money, and he eventually bailed everybody out. Now all these banks owe JP Morgan, and he was able to get his way on certain topics. And a topic that he brings forward is a bank to bail out all the banks. And since then, the creation of the Federal Reserve has been controlling money. Uh, if you guys want to dive more into this topic, The Creature from Jekyll Island is a really good book to reference. And so when I say specifically that JP Morgan created a stablecoin. It's bigger than what most people think. We're talking about credibility that comes from the Federal Reserve itself, the most powerful entity on the face of the planet when it comes to money.
