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It is a private corporation chartered by the US government.
The Fed is a government agency that includes private sector participants.
Quote:
Originally Posted by Mircea
The US Bureau of Public Debt is also a private corporation. So is the Federal Deposit Insurance Corporation, the Savings and Loan Insurance Corporation, the Pension Guaranty Corporation and many others.
The Bureau of the Public Debt is an internal agency within the Treasury Department. FDIC and PBGC are government-owned corporations. FDIC subsumed FSLIC after the S&L crisis, so the latter no longer exists.
The Federal Reserve does not issue stock. It is not a publicly traded corporation.
Nevertheless, it does issue what is called "stock", basically as a receipt for the membership fees paid by a member bank. The banks can't actually do anything with the "stock", but they do earn a 6% annual dividend on it.
Nevertheless, it does issue what is called "stock", basically as a receipt for the membership fees paid by a member bank. The banks can't actually do anything with the "stock", but they do earn a 6% annual dividend on it.
So someone lends the government money at interest that doesn't exist to begin with. It is simply entered into the books as credit. How does the interest ever get paid off if it wasn't created along with the principle borrowed? Simple. More money has to be borrowed (which in turn is lended out at interest) creating more money owed and more interest debt that can't be paid back without creating more debt.
So someone lends the government money at interest that doesn't exist to begin with. It is simply entered into the books as credit. How does the interest ever get paid off if it wasn't created along with the principle borrowed? Simple. More money has to be borrowed (which in turn is lended out at interest) creating more money owed and more interest debt that can't be paid back without creating more debt.
Pretty hopeless. What do you think is in your bank account? Here's a hint: Nothing. At least as you'd define it. Meanwhile, the Fed is financially independent. It doesn't receive appropriations, and it doesn't have to return any of its profits to the Treasury. And it makes A LOT of profits. That's where the very impressive appoinments in its two buildings came from...the lovely private dining rooms, the swimming pool, the racquet ball courts, the tennis court. Not your everyday downtown office building. Debt is the last thing that the Fed incurs in its opeations.
Pretty hopeless. What do you think is in your bank account? Here's a hint: Nothing. At least as you'd define it. Meanwhile, the Fed is financially independent. It doesn't receive appropriations, and it doesn't have to return any of its profits to the Treasury. And it makes A LOT of profits. That's where the very impressive appoinments in its two buildings came from...the lovely private dining rooms, the swimming pool, the racquet ball courts, the tennis court. Not your everyday downtown office building. Debt is the last thing that the Fed incurs in its opeations.
All the more reason to trade your worthless paper for real assets. Fiat money is fatally flawed by it's on nature.
All the more reason to trade your worthless paper for real assets. Fiat money is fatally flawed by it's on nature.
Absurd. Fiat money has a long history of serving effectively and efficiently as a medium of exchange, as a store of value, and as a unit of account in both current and capital applications. Real assets fail to perform such functions at anything like an acceptable level. This is why things such as salt, goats, wampum, and gold have been taken out of the bigger picture.
I'm so relieved that fiat currency operates efficiently as a medium of exchange. Now I can take my Roman denarius, Confederate continentals, Hungarian pengo, and Zimbabwe dollars and finally purchase something with them. I'll report back on my efforts to obtain lunch with these valuable forms of currency in just a bit.
Don't understand the difference between medium of exchange and store of value, do you. Nor apparently the functional differences between national and international financial regimes. You need a lot of work. As do the others. Get off the worthless internet gibberish and get yourself an education if you want to be conversant in these matters...
I've just returned. The owner laughed at me when I presented what I was told to be valuable mediums of exchange from some folks on the Internets. However, when I placed my hands into my pockets in disguist, I found some gold American eagles. I later realized that I had a pile of these silly eagles back at home. I figured these coins must be worthless because they've recently suffered the same fate as the other currencies I presented, namely their extinction from circulation. The storefront operator quickly took me to the break room where he proceeded to inform me of a transaction where I would purchase his store for 1 of these paper United States dollars (for legal purposes), along with the eagles for good measure and he would sell me his franchise. He went off about being able to avoid capital gains tax in his little discussion. He was a very happy camper.
He also informed me of all sorts of other provisions I may purchase with said eagles.
Absurd. Fiat money has a long history of serving effectively and efficiently as a medium of exchange, as a store of value, and as a unit of account in both current and capital applications. Real assets fail to perform such functions at anything like an acceptable level. This is why things such as salt, goats, wampum, and gold have been taken out of the bigger picture.
Every fiat currency in history has eventually become worthless. Gold and silver never has.
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