Who owns the Federal Reserve Bank (the USA 's debt in the trillions; we owe this money to whom?

Question

The Fed. (headed by Alan Greenspan for years till last year). Regulates the interest rate.
Our debt in the trillions of dollars . To whom do we owe this money; if the US is the richest country in the world and so drowning in debt? WHO IS THIS RICH ENTITY?

Answer 1

The Federal reserve is owned by private banks and the Federal Government is in debt to it each time it needs to borrow money. The "Fed" creates money out of nothing, then loans it the our govt, then we, the taxpayer is obliged to pay this debt. At this time each person is in debt to the Fed in the amount of about 63, 000 dollars the moment that they are born. This amount goes up every day.

Answer 2

The Federal Reserve System is a government agency set up to be quasi-independent. It's governors are appointed by the president and it is overseen by Congress. The board of governors decide on monetary policy and direct the actions of the 12 Fed Banks. There is absolutely no private ownership at this level.

The question of ownership comes from the fact that the 12 individual banks require "shares" purchased by member banks. These shares are paid a fixed dividend (6% last time I looked) that does not change and does not reflect the profitability of that Fed bank. The member banks have some voting rights within their branch of who will be on their local fed board.

Much of the U.S. debt is actually inter-agency. That is, by law, all Social Security surpluses have to be invested in T-Bonds. So essentially it is the government owing itself.

In answering your question, let's look at debt owned by the public.

A little more than half of U.S. debt is financed by foreign banks and investors. They have plenty of dollars to invest due to the tremendous trade imbalance.

The Federal Reserve buys T-Bills debt as a means of getting currency into circulation. As of last week, they had $835B in T-Bills.

The rest is owned by domestic investors.

It should be noted that about 98% of the interest paid to the Federal Reserve from T-bills is returned to the Treasury making it virtually interest free.

Answer 3

Nobody OWNS the federal reserve bank it's a branch of the goverment and is both a regulator and a bank of banks, divided into 12 districts.

Most of the debt is owed to foreign goverments particularly Asian gov't s and the debt is high but we can't ever go bankrupt, the gov't can always raise taxes or print more money. It is a serious concern though because the national debt is being added to everyday, under the Clinton Admin it was under control. Our currency is already pretty weak in comparison to UK and Euro.

Answer 4

The money is owed to mostly Americans...the people who own US bonds. The government issues US bonds, at a fixed rate for a fixed period of time..and mostly it's its own citizens which buy, (or lend) the governement issued bonds...its not all owned by foreigners, as some would suggest.

One can find out the proportion which is foreign owned..by the Saudis and Japanese, and others....I have US bonds myself...

Who owns the Federal Reserve Bank....that I cant help you with ...the US governement and therefore the people of the USA I presume.

Brock Maclean
Canada.

Answer 5

like people said, domestic T-bills and government bonds make up parts of the total debt... then there are foreign banks and nations, they lend us money too...

but don't worry, compare to the GDP, the debt we owe is nothing... that's why we have such a high leverage because we know we can pay it off... i mean, compare to some asian countries, like south korea, their debt is like 200% of their GDP, so we can sit back and relax.

oo, who owns the fed... i'd imagine it is part of the US government, because isn't the chairman appointed by the president? i'm not very sure about that... i always assumed it's a government department... so i guess i'm probably wrong

Answer 6

all the different solutions are incorrect. even if different international locations do make investments interior the U.S. right it truly is the way it works- Federal government collects taxes - they make a funds to allocate those collections to multiple applications (social protection / welfare / roads / wars and so on.) they are in a position to under no circumstances stability the funds because of the fact there are such a number of courses that pick funds. What they are going to do is print extra funds and truly write it off as debt. in the event that they print to plenty funds then they danger inflation and throwing the economic device right into a multitude. p.s. we no longer back the stronger it is why we are waiting to easily print extra funds. they did away with the stronger back interior the Nineteen Seventies.

Answer 7

the fed is privately owned, these people who claim it isn't just don't know what they are talking about. The fed's board members are picked by congress (true) but that does not mean the fed is publicly owned. It is made up of a bunch of different banks (which are privately owned). Nobody seems to know who owns these banks (I'll bet most of them are in forbes magazine). I have read many websites that ponder the same question and nobody seems to have an answer. My conclusion is that nobody knows for sure.

Answer 8

Japan, South Korea, and China own a good portion of the foreign parts. Savings Bongs, and government T-Bills are the largest part of the domestically owned debt.

Answer 9

Some money is owed to foreign nations, some debt is owed through government bonds, and so on...

Answer 10

the us in in debt bacause we spend too much then we take in from taxes, the government simply cannot print more money to get itself out of debt, because with soo much money in circulation, money would be worthless..... which is why counterfiting is a big crime now-days.. .. its the reason why we need a balanced budget amendment!!!!!

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http://www.uwsa.com/uwsa-usdebt.html

for your future contribution caluation!