The Global Financial System

The Federal Reserve is a federal system enacted to help balance the monetary system of America. Overall, the system is meant to encourage economic growth. However, there are some flaws of the system that result in economic chaos, such as stealing and inflation. It’s vital to understand the biblical principles that are overstepped by the Federal Reserve to determine if it is a system that aids Christian practices. Thus, one can observe the important role that the system plays, but also the problems that its flaws can create by overstepping Christian principles.

An international banking cartel led largely by House Rothschild, has taken control of virtually every countries money supply and installed a fiat currency that they own. This process is not a fast one. It is not measured in month, years, and decades but, instead, by generations.

You have used money to measure the price, the size of business, total output in the economy, and income. Coins and paper money are called currency. People use currency daily. When you go to a movie, you probably buy a ticket with currency. Coins and paper money work well for small purchases and when payment is made directly from one person to another. But, for large purchases or when payments travels to mail, currency is not practical. A check is a written order to pay money from amounts deposited. Therefore, deposits in checking accounts, credit union share draft accounts, and other similar accounts are considered money. Remember that the most important function of money is as a

The Federal Reserve System is commonly referred to as the U.S. central banking system. Congress discovered this system in 1913 with the purpose of providing America with a stable monetary and financial system. The Federal Reserve has three components, which includes the Board of Governors, the Federal Open Market Committee, and the Federal Reserve Banks. The primary functions of the Federal Reserve consists of conducting monetary policy, banking supervision, promoting stability for the financial system, and providing banking services.

The so-called Federal Reserve System (Fed) is a central banking system; unlike the banking system from other countries, the Fed build much later. In the American history, the origin organization that function as central banking is the the first bank of the United State (1791-1811) and the Second Bank of the United State (1817-1836). The United State government historically intended to build some central banking system like The Fed; however, people also worried about the power is going to be over controlled by the central bank; or the central bank itself is controlled by some particular interest groups. Many people worried about the idea of central banking system is due to the ideologies in the United States. The administrative power is excessively

“Money is a means of payment, store value, and a unit of account” (Case, Fair, & Oster 2011). Money is our economy’s barter. Instead of providing goods and services to get other good and services, money is that form of exchange. For example, you can easily go to the store with money and buy a gallon of milk. Money is a store of value; for instance gold and silver. Money gives purchasing power from one period to another, in other words it can be (look for “USED”)r ver time. As mention in the class lectures, we rely on checking and saving accounts for this. Money is a unit of account; it provides a common base for prices. We can add up goods to their dollar and cent value.

Money is considered to be a medium of exchange, a unit of account, and a store of value. Medium of exchange means that money is the intermediary instrument that facilitates the exchange of goods. It is also considered to be a unit of account which means it is something that can be used for value for goods and services, record debts, and make calculations. A unit of account, is divisible, fungible, and countable. Lastly money is classified as a store of value meaning it can be stored away through savings and keep its value for later use. The creation of money occurred because of the complexity of exchange in ancient times. Goods and services were exchanged; however, they were unbalanced. Some valued items or services as higher than others. This flaw in the barter exchange led to the invention of an economic system with money as the focus so there was a set value.

The financial system has been crucial to the role of free enterprise. “Financial markets have come to supply non-financial corporations with mechanisms for managing their risks and for comparing and evaluating diverse investment opportunities in a highly complex global economy” (Cindin, 2008). “However, despite the lifetimes it took to build our financial institutions, bad luck and careless risk management have jeopardized careers and mortgaged these institutions’ futures”(Wallace, 2008). The nation is currently attempting to deal with the biggest financial crisis since the Great Depression. It is now imperative that a way be found which will re-regulate finance without undermining finance’s

One cannot say that U.S banking system is designed to fail; however, it is the relentless deregulation in the financial sector and competing for financial sector activities in the globalized financial market as means towards higher growth resulted in its instability over the centuries. The U.S. central bank and federal government did not see the impending crisis on the horizon due to the deregulation of financial market. The central bank believed that there could be evolving economic imbalances or risk in the financial markets, but that these were best managed by market forces themselves. But they failed to realize that some time market fails on its own. Deregulation of the financial sector was initiated and reinforced through legislative changes, followed by regulatory policies consistent with the philosophy of deregulation. As the US was losing comparative advantage in agriculture, manufacturing, and services to developing and emerging market economies, while they continued to have advantage in the financial sector. Hence, the United States perhaps felt that national interest lies in their dominating financial sector activity, and hence development of the financial sector was coterminous with their national interest. This approach could have led to a race to the bottom in financial sector regulation in their jurisdiction. The US banking system and financial sector was source of so much instability was due to relentless deregulation of the financial market.

In economics, the term currency can refer either to a particular currency, for example the BD, or to the coins and banknotes of a particular currency, which comprise the physical aspects of a nation's money supply. The other part of a nation's money supply consists of money deposited in banks, ownership of which can be transferred by means of cheques or other forms of money transfer. Deposit money and currency are money in the sense that both are acceptable as a means of exchange, but money need not necessarily be currency.

The global financial environment has over the last decade experienced enough changes as can be witnessed from the key economic indicators. These changes have significantly impacted various stakeholders such as financial markets, money markets, capital markets and the general micro and macro economics players. Countries have been hit by recession and

Systems exist to maintain the society and bring prosperity, the monetary system is one and have gone through different stages and uses in its development. Due to different needs, societies develop at different pace so, the advantages and disadvantages of monetary system varies from one society to another. Today, money is no more backed by commodity, not equal to gold reserves; it has only a promissory standard. Thus no standard can effectively determine true money value as it is constantly redefined by consumers with relative understanding of other products true values in the market.

Since the Great Depression, the world has not witnessed an economic crisis on the scale of the current crisis. This is to the extent of it being referred to as the Great Depression of the 21st century. The crisis has resulted in a number of questions, most of which revolve around the interaction of political and economic forces in global economic management. It is difficult to point at one specific factor as a cause for the economic crisis, on the basis of arguments presented by a substantial number of commentators. What is meant here is that the economic crisis that has engulfed the world is a result of a wide range of gaps in political and economic governance. It is imperative to observe that the globalized economy of contemporary times encourages economic interdependence. However, it is the economic interdependence that has resulted in the replication of economic problems from one country or region to other countries and regions. This essay discusses the causes of the current global economic crises and the poor governance of the global monetary system.

The fact is the largest eighty corporations in the world are all financial institutions, each of these institutions controlling hundreds of billions, even multiple trillions worth of assets. These are what is known as megabanks, Admati (2013) and other economists believe that they are a particularly dangerous part of a fragile and inefficient financial system that exposes masses of money to unnecessary risk and distorts the economy. Argument claim that making this system safer should be at the forefront of people

The financial globalization is growing nowadays and it is important to know what its causes are and how they influence the world’s economics or one of the separate countries.