When the United States entered the war, the FED declared that
it was: “…prepared to use its powers to assure at all times an ample supply of
funds for financing the war effort.” Financing the war was at the core of the
FED’s policies. To finance the war, the FED asked the Congress to amend the
Federal Reserve Act by allowing to buy government bonds in unlimited amounts,
without guaranteed deposits, thus indebting the US government beyond any
measure.
The Vital Needs Theory - page 85