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→The New York Fed: added some info about petrodollar recycling which reinforces the idea that the new york fed was central, but at the same time embeds this within ongoing fed power struggles
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=== The New York Fed === | === The New York Fed === | ||
Real power in the system resides with the New York Fed, which conducts Open Market Operations, implements monetary policy, and deals with all international relations. Over time this concentration of influence has diffused, but only slightly. At the first board meeting, '''Benjamin Strong''', a Morgan man and Jekyll Island attendee, was elected governor. He would spend the next fourteen years working tirelessly alongside '''Montagu Norman''', Governor of the Bank of England from 1920 to 1944, to reinstate an international gold standard. Norman - like the Morgans - was a Nazi collaborator and member of the Anglo-german fellowship. He funded the rearmament of Germany with loans, transferred gold from Czech to Nazi bank accounts,<ref>Blaazer, David (2005). "Finance and the End of Appeasement: The Bank of England, the National Government and the Czech Gold". ''Journal of Contemporary History''. '''40''' (1): 25–39.</ref> and was a close personal friend of nazi central bank leader, '''Hjalmar Schact'''.<ref>Forbes, Neil (2000), "Doing Business with the Nazis"</ref> | Real power in the system resides with the New York Fed, which conducts Open Market Operations, implements monetary policy, and deals with all international relations. Over time this concentration of influence has diffused, but only slightly. During the 1970s '''Petrodollar Recycling''' was largely handled through the New York Fed, with 30 percent of Saudi Arabia's total portfolio (70% of their US assets) held in a New York Fed account in 1978.<ref>David E. Spiro, ''The hidden hand of American hegemony: petrodollar recycling and international markets,'' 1999. p113</ref> This upset Arthur Bums, Chairman of the Board of Governors, who saw this as an attempt by the New York Fed to reassert dominance.<ref>David E. Spiro, ''The hidden hand of American hegemony: petrodollar recycling and international markets,'' 1999. p108</ref> | ||
At the first board meeting, '''Benjamin Strong''', a Morgan man and Jekyll Island attendee, was elected governor. He would spend the next fourteen years working tirelessly alongside '''Montagu Norman''', Governor of the Bank of England from 1920 to 1944, to reinstate an international gold standard. Norman - like the Morgans - was a Nazi collaborator and member of the Anglo-german fellowship. He funded the rearmament of Germany with loans, transferred gold from Czech to Nazi bank accounts,<ref>Blaazer, David (2005). "Finance and the End of Appeasement: The Bank of England, the National Government and the Czech Gold". ''Journal of Contemporary History''. '''40''' (1): 25–39.</ref> and was a close personal friend of nazi central bank leader, '''Hjalmar Schact'''.<ref>Forbes, Neil (2000), "Doing Business with the Nazis"</ref> | |||
=== Monetary Operations === | === Monetary Operations === | ||