Quick Loans | Who’s afraid of the big, bad bank? You should be.

There are numerous ways in which payday loans and cash advances offer advantages over banks and credit unions when it comes to fast, convenient ways of obtaining small sums of ffast cash during a financial emergency. However, let’s take a moment to consider the grandaddy of banks, the Federal Reserve. Let’s get historical.

One of its forerunners, the Second Bank of the United States, was authorized by President James Madison in 1816. Its control over America’s money supply - all while operating outside of government control - was (and is) controversial. During President Andrew “Old Hickory” Jackson’s tenure, he was committed to stopping it.

Why? Jackson felt a national bank needed to be abolished because (thanks to Wikipedia):

• It concentrated the nation’s financial strength in a single institution
• It exposed the government to control by foreign interests
• It served mainly to make the rich richer
• It exercised too much control over members of Congress
• It favored northeastern states over southern and western states

Jackson managed to veto the Bank’s charter, and by 1836, the Second National Bank of the United States went under, to be replaced by a local bank.

Jump ahead in time to 1913. President Woodrow Wilson creates the Federal Reserve, which became America’s bank - even though it was outside government control and took it upon itself to produce money, even though the Constitution of the United States grants only Congress the right to do this. Interestingly, President Wilson had this to say about the founding of the Federal Reserve:

“A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world. No longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men.”

Take a look at sites like “Take Back the Fed” and “The Federal Reserve Bunk” and see how the Federal Reserve may just have gone much further than banks with their overdraft, ATM and “convenience” fees. A big issue economists like John Mason have with the Reserve is that it should make controlling inflation its number one priority, but arguably, they aren’t accomplishing this all-important end under our current economy. Take a look at Mason’s article, “Has the Federal Reserve Become Too Powerful?”

Once you see what the ultimate model for banking truly is, maybe you’ll think twice before you pass up a payday loan company like personalmoneystore.com or my-paydayloan.com for fast cash, in favor of a bank.