got together after ten days they came up with a solution they were going to create the national reserve association which would kind of morph into the federal reserve act which would morph into the central bank as we know it today and the central bank basically what they wanted to do they modeled it after the german model actually the term daddy warbucks came out of he was a big banking baron in germany there are plenty of countries the central banks but you know the meeting was to create the fed to help the country to ease the ebb and flow of the market hasn't done a great job of that. maybe maybe not some would argue some would argue no but today that's what it's doing with quantitative easing which i'm sure you're going to ask me about future but you know it's just seems like you know we see this revolving door between industry and regulation all the time business and government but it just seems like the federal reserve is just so open and shut i mean you have bankers literally running this industry that is directly directly influence is a lot of policies and government. other central banks and

just off the coast of of georgia and what resulted was a plan for something called the national reserve association an institution that would handle government debt to remain privately run and nine hundred thirteen president woodrow wilson signed the federal reserve act codified in america's most powerful financial institution one that is neither federal nor holds any reserves we're going to help me break down some questions and this conceptions about the very complex workings of the federal reserve system i'm joined by a host of artie's boom bust erin eight of what is a i've got to her. you love being on set always ok. i know you love it isn't but i've been i've been in love in having you explain this to me the last couple days really mind blowing. aaron i think the biggest misconception that people have of course federal reserve its right i mean it's public but it's not why is that not the case that's exactly i mean the title is almost intentionally mis. misconceived because it isn't a federal institution it isn't a public institution it's a private institution that serves a public mission and it

entered in to the record the fleet reserve association, the iraq and afghanistan veteran's of america, the american leaguen, the veteran of foreign war, the national military family association, and lieutenant cornel michael parker, u.s.a. retired who is a wounded war advocate. we are now going to start with general. this is a reunion of sort. we want to tell you we're delighted to see you all here, and we -- of course, very much treasure the relationship which have been established between this committee and all of you. and treasure the service which you have performed for our country. we thank you. >> chairman levin, senator inhofe. members of the armed services committee. thank you for the opportunity to appear before you today. i've also submitted a statement for the record, but it's an honor to me to speak today to you on behalf of those who serve and have served and their families. on behalf of the 380,000 member of the military -- officer's association of america, i have the honor and privilege of serving as the chairman for the rest of this year. we thank the senate armed services committee for holding this hearing on military retirement p