By Patrick Vaillancourt | knownliars.com
March 13, 2013
What is the Federal Reserve anyway?
We hear about it all the time but what do we really know about the Federal Reserve? If you take a one, five, ten dollar bill etc., and look at the top, it clearly says, “Federal Reserve Note.”
Anti-Federal Reserve folks argue that it’s a private entity run for profit. Pro-Federal Reserve people argue that it’s separate from the government operating within it, and that money should not be part of the political process. Of course, saying that something is independent but “within in it” is what George Orwell called “double think” and “double speak.” That’s a common tactic of any dictator or oligarchy.
“The Federal Reserve System fulfills its public mission as an independent entity within government.” “As the nation’s central bank, the Federal Reserve derives its authority from the Congress of the United States. It is considered an independent central bank because its monetary policy decisions do not have to be approved by the President or anyone else in the executive or legislative branches of government, it does not receive funding appropriated by the Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms.
However, the Federal Reserve is subject to oversight by the Congress, which often reviews the Federal Reserve’s activities and can alter its responsibilities by statute. Therefore, the Federal Reserve can be more accurately described as “independent within the government” rather than “independent of government.”
The Federal Reserve is Independent
Does it really matter if it’s “independent within government,” or “independent of government?”
1. not influenced or controlled by others in matters of opinion, conduct, etc.; thinking or acting for oneself: an independent thinker.
2. not subject to another’s authority or jurisdiction; autonomous; free: an independent businessman.
3. not influenced by the thought or action of others: independent research.
4. not dependent; not depending or contingent upon something else for existence, operation, etc.
5. not relying on another or others for aid or support.
So, the obvious question is if it’s independent, then how is it within Government? The answer is that it cannot be both things simultaneously. It’s a technicality that Congress questions the Federal Reserve chairman, currently Ben Bernanke, from time to time. It’s also a technicality that the Congress can change its responsibilities. If Congress were to alter what the Federal Reserve does, it would basically cease to exists in its current form which is to expand and contract the money supply for member banks, which they call “depository institutions.”
The Federal Reserve’s job is to expand and contract the Money supply to the benefit of its large private bank shareholders.
This expansion and contractions of the money supply is where the shareholder banks benefit from the creation of money, but not from the stock itself. Can you see the careful wording the Federal Reserve is using to confuse the issue?
“The Federal Reserve exercises considerable control over the demand for and supply of balances that depository institutions hold at the Reserve Banks. In do doing, it influences the federal runds rate, and ultimately, employment, output, and prices… The Federal reserve implements U.S. monetary policy by affecting conditions in the market for balances that depository institutions hold at the Federal Reserve Banks”
The Shareholder’s of the Federal Reserve are Private Banks
1. belonging to some particular person: private property.
2. pertaining to or affecting a particular person or a small group of persons; individual; personal: for your private satisfaction.
3. confined to or intended only for the persons immediately concerned; confidential: a private meeting.
4. personal and not publicly expressed: one’s private feelings.
5. not holding public office or employment: private citizens.
“The 12 regional Federal Reserve Banks, which were established by the Congress as the operating arms of the nation’s central banking system, are organized similarly to private corporations–possibly leading to some confusion about “ownership.” For example, the Reserve Banks issue shares of stock to member banks. 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. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year.”
So, it’s made-up of member banks that are private. It’s independent, and it’s structured similarly to private corporations. Therefore, it’s a private central bank with immense power to expand the money supply and skim enormous profits at the front-end of the expansion. This is also known as counterfeiting. We have an economy that is run by a giant private counterfeiting ponzi-scheme.