Who owns the Federal Reserve

So now what does all of that mean? What nefarious scheme regarding the Fed is this suppose to validate?

You have copied and pasted various disconnected paragraphs from Wikipedia that were taken out of context.

Let's take a look at the comment that regional bank directors are elected by member banks. If you look elsewhere in your source, you will find that regional banks have a board of 9 members. Three directors are elected by member banks to represent bank interests. Three directors are elected by member banks to represent consumer interests. And three directors are elected by the Fed Board of Governors.

The Fed governors are appointed by the President and confirmed by the Senate. And Fed Board of governors is charged with overseeing the regional banks...the guys who get to have member banks elect directors.

What you are doing here Cosmic is clip and paste to create an incomplete and misleading view of the Fed.

 

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Not at all. If you were to see that the FED doesn't create money it does get what it asks for from the treasury, it says so right there in what I've pasted. So that would mean that it can ask for more money to be printed by the Treasury and will get what it wants almost always according to what I read. That means the banks / people other than the government can get that money to cover themselves anytime they need to. Then that newly made money must be paid back by the taxpayers, not the banks that needed it. This is what I wanted to express and if I'm reading it wrong please feel free to show me where I went wrong in my understanding of how the FED can regulate the way the economy is going and helping banks in trouble by asking for more money to be made up out of thin air or selling TNotes.

 

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You like to focus on the individual hair while ignoring the beast. One of the roles of the Fed is to create and manage monetary policy. That is a good thing, not a bad thing. Were it not for the Fed's management and actions during the Great Recession of 2008 - 2009 we would now be in the Great Depression II.

Now you are going to have to explain your following comment, because I don't get it at all.

"That means the banks / people other than the government can get that money to cover themselves anytime they need to." - Cosmic

Banks can borrow, but only against assets. The Fed will loan but it is collateralized against bank assets. Two, insolvent banks are closed (nationalized) by the government (Comptroller of the Currency) and the assets are resold to other banks. That means bank owners loose their investment. Bank owners get nothing in the event of a government liquidation because of insolvency.

"Then that newly made money must be paid back by the taxpayers, not the banks that needed it."

The Fed has nothing to do with creating liabilities for the Federal government. How you can come up with this is just beyond me and is not supported in anything you have posted.

The Fed expands money supply by purchasing collateralized assets or US Treasury debt. It reduces money supply by selling those assets. It does not create those assets.

The other way the Fed manages the nations money supply is by regulating amount of money banks must have in reserves. Increasing the bank reserve requirements effectively drys up the money supply.

I think you are confusing fiscal and monetary policy. Monetary policy, the realm of he Fed, is the act of managing the money supply. And if you look at the money supply numbers they have been very stable over the course of the last several years.

Fiscal policy is the realm of the Congress. Congress is the body that causes the US government to go into debt, not the Federal Reserve.

 

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"No, the US government owns the Federal Reserve. It is an independent agency of the federal government.
This has been explained to a number of people on this board over and over again. I guess fantasy land is a much better place for those folks to live and play."

OBVIOUSLY the US government owns the FED. I was just making an assumption that Corporations primarily Financial, could influence the US government via lobbying to use the FED in ways that would benefit them.

 

In that case, I can understand and agree. It is not only financial corporations, but healthcare and any special interest with substancial amounts of money.

Unfortunately too many people really don't understand the Federal Reserve or finance and buy into some pretty wild ass and dangerous false beliefs.

 

The banking families dont benefit from the federal reserve? BULLSHIT.
JFK is a conspiracy theory and jefferson? BULLSHIT.

"Independent agency of the goverment" What the fuck does that mean.

 

Let me ask you this: Were you worrying about the Fed in 1965? If not, why not?

 

So do the Bank of France, the Bank of England, the Bank of Everything, if you got my drift... The Fed is a central bank, end of story. Oh yes, there is no country without a central bank...

 

No because we were on the gold standard back then and ever since we went off that standard I have been very skeptical.

 

OK, so you were worrying in 1975? Why? Show me any Western country being on the gold standard...

True the Fed came to existence under funky circumstances, but just because Americans didn't want a central bank. Just treat it as one and you will sleep better. Europeans don't worry about their central banks, only about their policies...

There is another thread where we already explained everything, look it up...