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The Federal Reserve is a entity of the United States Government. The structure of the Fed is designed to insulate it from the political bickering and rancor that pervades much of the federal government. The banks that have shares in the Federal Reserve System are mandated to buy those shares in order to have a federal banking charter. The banks provide capital to the Federal Reserve in exchange for shares. The shares DO NOT PROVIDE OWNERSHIP PRIVILEGES the same way that shares do in a private company. No bank or group of banks for example can vote to remove the chairmen of the Federal Reserve Board of any of its governors. That can only be done by the President.
It shocking how few Americans really understand the financial system or how the Federal Reserve system works. It's part of the what makes the United States the financial stalwart of the economic world despite the current economic recession. In fact the recession would have been much more severe without the fiscal policies instituted by the Federal Reserve. More people should study the economic and financial history of the United States. The system we have now is much better than anything we've ever had before and the economy is stronger for it.
The Federal Reserve is a private bank that is not federal and has no reserves.
"The Financial Hijacking of America" with author, Ellen Brown. Brief history of banking; two ways to create money, either publicly or privately; credit creates money and debt; the Federal Reserve; bubbles and crashes; market manipulation; recent changes in banking and accounting rules; securitization; Bank of International Settlements in Basel, Switzerland; the need for state owned banks."
Listening to Ellen I was surprised on how much she sounds like me when discussing the issues in this interview. Her description of David Rockefeller and his quotes on the NWO was a point I was surprised that she shared. She does a good job on explaining global governance including banking.
Another one of my favorate talking points that Ellen talked about was the Bank of International Settlements and a new currency SDR's. That is where I think we are heading the BIS becoming the federal reserve and SDR's replacing USD.
Listening to Ellen I was surprised on how much she sounds like me when discussing the issues in this interview. Her description of David Rockefeller and his quotes on the NWO was a point I was surprised that she shared. She does a good job on explaining global governance including banking.
Another one of my favorate talking points that Ellen talked about was the Bank of International Settlements and a new currency SDR's. That is where I think we are heading the BIS becoming the federal reserve and SDR's replacing USD.
reid, you might be interested in these interviews of this lady Jane.
I recommend watching the casino series 1st, then take a gander at the 2nd round of discussion.
In that 2nd round she constantly mentions the link between the strong dollar policy, Wall Street and our manufacturing sector, which is a link that is often not mentioned in the mainstream news.
I also suggest you take note of the quote of Caldor that is mentioned in part 2 of the 2nd series and how many people warned of where we were headed decades ago before everything hit the fan in '08.
You might want to skip the 1st 15 minutes of this interview, as its pretty depressing but it becomes a tad more upbeat afterward.
Take note that the author points out that it is the Congress that has the Constitutional authority to regulate commerce and that it was an act of Congress that created and delegated that authority to the Federal Reserve.
I see no Constitutional reason why the Congress can not likewise once again delegate some of their Constitutional power to the states, as the states would be much closer to We The People and more responsive to our needs than much slower and larger federal government or a portion of it run by bankers that frankly no longer give a damn about Main Street Americans anyway.
reid, you might be interested in these interviews of this lady Jane.
In that 2nd round she constantly mentions the link between the strong dollar policy, Wall Street and our manufacturing sector, which is a link that is often not mentioned in the mainstream news.
"A falling dollar can affect U.S. consumers, investors and businesses in various ways. Exports from U.S. businesses become more affordable for European buyers.
A different scenario has been playing out with China. An undervalued Chinese yuan has weakened U.S. exports while making Chinese goods attractive to U.S. consumers. The imbalance has weakened U.S. economic growth. And it threatens U.S. manufacturing jobs at a time when the American economy is struggling with 9.6 percent unemployment.
American manufacturers would like to see the dollar fall by as much as 40 percent against the yuan. The administration is hoping this change will give a boost to U.S. manufacturing jobs."
A strong dollar does not seem to do our manufacturing body good. A point to take note of when hearing arguments that we should have a very strong dollar.
"These media outlets have called attention to the fact that reflecting the true cost of clean energy is, and will continue to be, unpopular -- a completely logical fact given the current state of our economy. This means that the time is now for the creation of a federal clean energy financing institution (a "Green Bank") which would lower the cost of clean energy. We do not need to take the unpopular route of making carbon-intensive energy more expensive. Instead we can make clean energy sources more affordable. The energy sector has huge potential for new investment and widespread expansion, and this potential can only be realized if this sector is provided with the proper incentives."
Since the Fed has made it clear that it doesn't give a damn about lowly non-corporate America, then let us have our OWN state owned banks.
"I mean, like, we've heard in previous interviews we've done that being the world's reserve currency might be good for US banks; it's not necessarily so good for ordinary Americans.
And traditional monetary policy or even quantitative easing can't work, because the Federal Reserve isn't implementing tools to make sure that this credit is going to generate jobs in the United States. So we need a more balanced fiscal policy, we need a more hands-on monetary policy to allocate this credit to generate jobs, or in the end what we're doing is having our problems spill over to the rest of the world. And bashing China is not going to solve this problem.
So if these big private banks continue either to sit on more than $1 trillion of assets that they more or less got for free from the Fed, or take it to make dough abroad, and if they don't put it into the US economy, then what else can be done, other than have some public way of putting liquidity into the economy and stop giving banks free money?
The problem now is you've got one half of the equation's kind of in place, which is the practically free money for the banks to act as a kind of stimulus, but you don't have the other half, any kind of public interest mandate or regulations on the banks. So it doesn't work if that's all you do."
"The Beijing government set up special-purpose asset management companies for the four largest state-owned banks, the equivalent of the "special purpose vehicles" designed by Wall Street to funnel real estate loans off U.S. bank books. The Chinese entities ultimately bought $287 billion in bad loans from state-owned banks. To pay for the loans, they issued bonds to the banks, on which they paid interest. The state-owned banks thus got $287 billion in toxic debt off their books and turned the bad loans into an income stream from the bonds.
Sound familiar? Wall Street did the same thing in the 2008 bailout, with the U.S. government underwriting the deal. The difference was that China's largest banks were owned by the government, so the government rather than a private banking cartel got the benefit of the arrangement.
We might take a lesson from the Chinese and put our own banks to work for the people, rather than making the people work for the banks. We need to get our dollars out of Wall Street and back on Main Street, and we can do that only by breaking up Wall Street's out-of-control private banking monopoly and returning control over money and credit to the people themselves.
In a paper presented at the American Monetary Institute in September 2010, Prof. Kaoru Yamaguchi showed with sophisticated mathematical models that if done right, paying off the federal debt with debt-free Treasury notes would have a beneficial stimulatory effect on the economy without inflating prices."
Just like Old Man Fritz has been saying for the longest, the Wall Street gambling addicts and their government vassals have basically said F**k you to the American middle income and working populations.
It does not matter how tanned you are, what continent your ancestors originated from, and least of all what party you vote for and how much you love sipping tea.
Non-corporate Americans need to wake up and not let the nation get tea bagged and DEMAND that Congress give states the power to create their own banks. This issue with the out of control banks could very well lead to the end of the American middle class.
"The problem is that the Fed's actions have served to help just a small, but powerful, constituency: Wall Street, and the firms that do the most business on it. Yet experts are questioning whether the Fed has pursued policies that push corporate America to invest at home, or whether those policies have had the perverse effect of driving businesses to hoard cash or invest abroad.
For corporations, however, life has rarely been better.
Sitting atop a record $1.8 trillion in cash and other liquid assets, non-financial U.S. firms are awash in wealth, Fed data show. Relative to their short-term liabilities, U.S. corporations haven't been this flush since 1956. By that same measure, their balance sheets are twice as strong as they were just 15 years ago.
Thanks to the Fed, which cut the main interest rate -- the rate at which banks lend to each other for overnight funds -- to the 0-0.25 percent range in December 2008, and has kept it there ever since, corporations have been able to borrow at ever cheaper rates. For families, it seems that it's never been harder to get a line of credit. For banks, they book an easy profit by borrowing at near-zero cost and lending it back to Uncle Sam.
In a March interview with The Huffington Post, Hoenig said the Fed didn't "have any business guaranteeing Wall Street spreads," otherwise known as the profit generated from the difference between borrowing at low interest rates and at lending higher."
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