Who controls the Federal Reserve?
Evelyn de Rothschild. He is not the Secretary of Treasury, but he controls what the Secretary of Treasury can do, in turn...he does not have the money...he, and his family, is the money
Is the Federal Reserve Bank private or public?
I think they explain it themselves:Who owns the Federal Reserve?The Federal Reserve System is not "owned" by anyone. Although parts of the Federal Reserve System share some characteristics with private-sector entities, the Federal Reserve was established to serve the public interest.The Federal Reserve derives its authority from the Congress, which created the System in 1913 with the enactment of the Federal Reserve Act. This central banking "system" has three important features: (1) a central governing board--the Federal Reserve Board of Governors; (2) a decentralized operating structure of 12 Federal Reserve Banks; and (3) a blend of public and private characteristics.The Board of Governors in Washington, D.C., is an agency of the federal government. The Board--appointed by the President and confirmed by the Senate--provides general guidance for the Federal Reserve System and oversees the 12 Reserve Banks. The Board reports to and is directly accountable to the Congress but, unlike many other public agencies, it is not funded by congressional appropriations. In addition, though the Congress sets the goals for monetary policy, decisions of the Board--and the Fed's monetary policy-setting body, the Federal Open Market Committe--about how to reach those goals do not require approval by the President or anyone else in the executive or legislative branches of government.Some observers mistakenly consider the Federal Reserve to be a private entity because the Reserve Banks are organized similarly to private corporations. For instance, each of the 12 Reserve Banks operates within its own particular geographic area, or District, of the United States, and each is separately incorporated and has its own board of directors. Commercial banks that are members of the Federal Reserve System hold stock in their District's Reserve Bank. However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. In fact, the Reserve Banks are required by law to transfer net earnings to the U.S. Treasury, after providing for all necessary expenses of the Reserve Banks, legally required dividend payments, and maintaining a limited balance in a surplus fund.
Why is the US Federal Reserve not publicly owned?
Public investors expect their investment to turn a profit, a return on their investment.The Federal Reserve is different.First the Federal Reserve has no need for capital from outside investors. Since there is no need, those investors would only be a nuisance.The Federal Reserve is not designed to earn a profit. The mission is to control the money supply, by changing the rate banks pay for money, and thereby control inflation, the value of the currency, and growth in the economy.Sometimes these goals call for Draconian measures that investors would never put up with. Raising interest rates in the late 70’s early 80’s to levels that choked the economy, ended many business, but put a stake in the heart of inflation that was becoming entwined in our economy. Currently, and for the past years, they have interest rates way to low, if they were a business, trying to turn a profit on their sales (money). The fed has to put itself in the way of, take a bullet so to speak, for things that can hurt the US economy. That job is their master, neither the Public, nor President should be their master.The President can appoint people to serve on the board, but the key is serve the public, not solicit investments from. and promise returns to them. Corporations are always in a popularity contest, have to do the popular thing. The Fed has no such luxury, it must sometimes do, the most unpopular things, for the greater good. What they can do, is raise or lower their perception in the public by being more transparent. I actually took a class in understanding the code the fed speaks in. Why? Why can’t they say what they mean and mean what they say? Because in the words of Jack Nicholson, “You Want the Truth, You Can’t Handle the Truth!”If the Federal Reserve is publicly owned, why not the Army, Housing Dept, Energy? We could attack those countries where we could turn a profit, build slums for the government and keep prime drilling sites for the motherland. That model is tried elsewhere, not here.
Should the Federal Reserve be abolished?
Absolutely. The Federal Reserve is NOT part of the Federal Government, since it is not under any of the three branches. The Federal Reserve is not authorized by the Constitution. The Federal Reserve prints debt notes that we are forced to use as money because of legal tender laws passed by the Congress. The Constitution mandates the Congress with COINING money, and stipulates that no state make anything but gold and silver coin a tender in payment for debt. What could be clearer than that? Congress is obligated to coin money out of gold and silver. Paper certificates are acceptable as long as they are redeemable in real money -gold and silver coin. So why did the Congress create the Federal Reserve in 1913? Because enough congressmen had been bought by the banking interests. These international bankers who make up the Federal Reserve System have made billions on this scam. At the same time, the Federal Reserve scam has given politicians billions more in revenue than they could have raised through taxation. The process is called inflation, and the Federal Reserve is the engine of inflation. Politicians do not want to see the Federal Reserve abolished since they would loose the ability to swindle us through inflation. The bankers don't want to loosed the interest on treasury bonds they accrue from the bonds they purchase with federal reserve notes, that they create out of nothing. So, yes the Federal Reserve needs to be abolished, and we need to return to honest, Constitutional money - gold and silver coin.
The Federal Reserve, and Economic Terrorism...?
The Federal Reserve ( a private bank, with no ties to the US government) is pushing a 700 Billion dollar bailout plain, which will turn into trillions. The actual purpose of the plan, to buy up large corporations without using their own money. Instead, they try to sell the idea to the public that devaluing the dollar still further will help! But devaluing the dollar is what got us here. The dollar has shrunk, because of this prices have increased beyond wages. The economy is telling us something, no it's demanding it. THE MARKET IS DEMANDING LOWER PRICES, and the bailout will only make prices higher by devaluing the dollar still further. THE FEDERAL RESERVE, ECONOMIC TERRORISM AT IT'S BEST! Tell me america, what do you think will happen if this bailout plan passes? Do you want inflation which leads to higher prices? How can higher prices save an economy that's demanding lower prices?
Why is the federal reserve good?
Since the FRS did not exist before 1913, we can look to history to what it would be like without a publicly owned central bank: -There would be no national coordinated monetary policy. Each bank would expand or contract credit based on their immediate business needs, not the natons requirements. - Smaller banks would be dependent on larger banks for credit extensions, currency, etc. History has shown that larger banks often consider smaller banks as competition and didn't care if they failed. (After 1935, the Fed was charged with looking after the overall health of the system) - Prior to the Federal Reserve, there was over 30,000 types of currency in circulation as many state banks issue currency. - In international monetary matters, the nations largest private banks would represent America - There would be no elasticity to the currency. You would see more cycles of inflation/deflation, and boom/bust as we saw in the 1800s - Banks would return to being audited soley by themselves in their shareholders interest. (After 1935, the Fed was charged with being the nations bank auditors to serve depositers interest as well.) - Clearing of checks would go back to private clearinghouses often run by large banks. Without an impartial clearinghouse, decisions in the process would sway toward the private interests that control it. So clearly there is some benefit to a central bank.
What is reserve money?
Reserve money (M0) is also called central bank money,base money,high powered money. In simple terms reserve money is the currency in circulation plus deposits with RBI.Reserve money(M0)=currency in circulation + deposits with RBI.Currency in circulation consists of currency notes and coins with public plus cash in hand with banks (or) we can also say currency released by RBI minus currency it absorbed.Deposits with RBI consists of balances maintained by banks in the current account of RBI for maintaining CRR(cash reserve ratio) and as working funds for clearing adjustments plus deposits from foreign central banks , financial and multilateral institutions.
Is the Federal Reserve necessary?
An economy functions much better by using "money". (I.e., something to function as a medium of exchange, a store of value, and a unit of account.) Modern economies use fiat money, which allows the supply of money to be arbitrary.Macroeconomics teaches us that economies function best, when the value for money is stable and predictable. Not necessarily unchanging, but at least only slowly changing. Most modern central banks target small, positive annual inflation of around 2%. (Positive inflation is better than zero inflation, because the labor market exhibits sticky wages -- especially downwards -- so positive inflation allows the labor market to function more efficiently. Low inflation is better than high inflation, for a large variety of reasons including menu costs, tax policy, store of value, etc.)The primary purpose of the (modern) Federal Reserve, is to solve a very specific problem. Namely, the demand for money ("velocity") can vary over time. In order to keep the value of money on a predictable, steady path, the supply for money must similarly be varied to counteract changes in the demand for money. (The value of money is the intersection of supply and demand, just as it is for any commodity.)That's why the (modern) Federal Reserve exists. To make the choice of the arbitrary supply of fiat money, in order to absorb changes in the demand for money, in order to maintain a predictable value for money (over both the short and long term).(The original Federal Reserve, and a portion of the current Fed, was about regulating and stabilizing the banking sector. That's actually a completely separate problem from controlling the money supply. The Fed would actually function better if it were broken into two separate institutions, chartered to each do only one of these two very different jobs.)
Why does the Federal Reserve have such a misleading name when it is a private bank that has nothing to do with the US Federal Government or the interests of American people?
See . For Greenspan's description of Fed's oversight and who controls what.Whether or not the fed is part of the Federal Government, it really doesn't make any difference. If it walks like a duck, and talks like a duck then it's an independent organization that only pays lip service to the American people. The fed is a cartel of bankers who's sole purpose is to do what's best for the cartel. Bankers make money by lending money....and we have now borrowed 19 trillion dollars. Somebody has made a ton of commissions on that money...And in the mean time it has become impossible for large banks to fail...Its not what they say, it's what they do that shows what they really are. And now the fed is toying with negative interest rates, just like Europe. And all this manipulation has put us on the brink of a monetary crash. Every enterprise takes on the personality of its leadership. Review how the last banking crash was handled, with all the foreclosures that put families out in the streets, and how those homes were bought by investors for pennies on the dollar. And how your grandparents savings accounts are no longer paying interest forcing the older people back into the work force. Or even double dipping retired government employees who are guaranteed a nice living at the expense of non government workers. Look at this and tell me that the fed is populated with men of high moral character. Don't piss on my head and tell me it's raining.