Why did John F. Kennedy attempt to bypass the Federal Reserve in 1963?

With the exhaustless reservoir

of the Government of the United States furnishing easy money,

the sales increase, the businesses enlarge, more new enterprises are started,

the spirit of optimism pervades the community.

Everyone is making money, everyone is growing rich.

It goes up and up…until finally someone whose judgment was bad,

someone whose capacity for business was small, breaks,

and as he falls he hits the next brick in the row, and then another

…and down comes the whole structure.

That is what happened to greater or less degree

before the panic of 1837, of 1857, of 1873, of 1893 and of 1907.

Elihu Root

US Senator, Nobel Laureate

If Germany’s central bank suspended the right
to redeem gold backed Reichsmarks during World War I,
and 170 Reichsmarks bought an ounce of gold in January 1919,
why did an ounce of gold cost 87,000,000,000,000 Reichsmarks in November 1923?

There is an element in the readjustment of our financial system,

more important than currency, more important than gold,

and that is the confidence of the people.

Franklin Delano Roosevelt

Replaced Herbert Hoover as US President in 1932

after government intervention failed to mitigate The Great Depression

Why did the United States use its political, economic and military weight
to stabilize international trade after World War II
by negotiating agreements obligating participating countries
not to print more money than directly backed by gold reserves,
and to maintain exchange rates within 1% of gold backed US dollars at $35 an ounce?

Government spending is the ultimate tax on the economy.

Milton Friedman

Economic Nobel Laureate

Why did John F. Kennedy attempt to bypass the Federal Reserve in 1963
by authorizing silver backed Treasury Certificates?

If the Coinage Act of 1965 eliminated silver in quarters and dimes
as 190,000 US soldiers deployed to Viet Nam, could war be inflationary?

Inflation is one form of taxation that can be imposed without legislation.

Milton Friedman