If the Federal Reserve is a group of private banks, how is it legal that they profit off of your taxes?

Question

How is it consitutional that through paying your taxes (US citizen) private citizens in the form of The Federal Reserve can profit off of your money with no say to your part as to whether or not you want to invest in their bank?

Answer 1

The Federal Reserve System is organized with a government agency at the top (the Board of Governors), and branches beneath them that resemble private corporations. (http://www.federalreserveeducation.org/fed101/structure/ )

- To review the federal reserve structure...

At the top of the Federal Reserve System is the Board of Governors. These are all appointed for 14-year terms by the president and confirmed by congress. It operates per it's charter and laws set by congress. it is overseen by congress. There is no structure or mechanism for private ownership at this level. In fact, board members are forbidden by law to have any economic interest in a private bank.

The 12 branches, however, are organized similar to private corporations. Member banks are required to buy shares in their branch. They can vote for 6 of their 9 board members. The shares get a standard 6% dividend. These shares cannot be sold on the open market. All 'profit' from the Federal Reserve branches are turned over to the Treasury at the end of the year. Is this private ownership? The Fed says no. (see
http://www.federalreserve.gov/generalinfo/faq/faqfrbanks.htm#6 ). The courts show a split decision.

I equate the arrangement to a government agency (the Board of Governors) contracting out the day to day operations to a tightly controlled and regulated company.

- To review the profit from taxes

I believe the comment comes from the interest earned from the T-bills that the Federal Reserve buys/sells to control currency in circulation. And it is true that member banks get a standard 6% dividend on the shares they own in a Fed Branch.

However, after the dividend and all expenses are paid, the rest is returned to the Treasury. That's about 98% of the interest making it almost an interest free loan. Not a bad deal for tax payers.

Answer 2

Wow, spectacular style of fallacies multi functional sentence. The Federal earnings Tax is criminal by skill of the sixteenth modification. The Federal Reserve device, isn't purely one economic enterprise yet 12. it extremely is not unlawful, and it extremely is not inner maximum. The IRS assesses and collects earnings tax, no longer the Fed. The IRS is an business enterprise of the Treasury branch. The Fed although, does act as a countrywide economic enterprise in that the money gathered by skill of the IRS is deposited in a Fed economic enterprise, and costs are paid out of it.

Answer 3

It is the single largest injustice done to American citizens who are too ignorant to know..
This is the second largest problem in America.............


http://video.google.com/videoplay?docid=-4312730277175242198

sorry dude, no one answers mine when i ask this either....... no one knows anything about it,,,,,,,