They are a private company, and not the United States bank.
United States actually BORROWS money from Federal Reserver (FED) and owes them $9 trillion in debt.
Their money is not backed in gold or silver bullion.
They print money as they please.
They have been blamed for causing the depression.
They have been blamed for our high taxes.
They have been blamed for purchasing political candidates.
Since their money has no value, it can cause the collapse of all financial institutions around the globe.
Countries on both sides of a war borrow money from the Federal Reserve.
Is there truth to these alegations?
Is there a better alternative currency?
2007-02-27 10:23:03 · 7 answers · asked by cheesewhiz 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
You have raise several points. Let's take a look
- Re: Is the Federal Reserve to blame for high taxes?
No, that would be congress. They're in charge of tax laws.
- Re: They are a private company...
Not wholly true. Take a look at how it is organized.
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/ )
The Board of Governors 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. Board members are forbidden by law to have any economic interest in a private bank. Per Wikipedia: "The Board of Governors of the Federal Reserve System is an independent federal government agency. "
(ref: http://en.wikipedia.org/wiki/Federal_Reserve#Legal_status_and_position_in_government )
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? It is the subject of much debate. The Fed says 'No' (ref: http://www.federalreserve.gov/generalinfo/faq/faqfrbanks.htm#6 ) but it remains the subject of much debate.
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.
- Re: and not the United States bank.
Try typing into Google "Define: Federal Reserve" to get over half dozen definitions from different sources. I don't think you'll find any that agree with your statement.
Can you cite any authoritative source that says the Federal Reserve is NOT the U.S. Central Bank?
- Re: United States actually BORROWS money from Federal Reserver (FED) and owes them $9 trillion in debt.
Your $9T for the national debt is about right. However, the amount held by the Federal Reserve is less than 10% of that, about $780B (ref: http://www.federalreserve.gov/Releases/h41/Current/)
- Re: Their money is not backed in gold or silver bullion.
True for most intents and purpose. However you might be able to win a bar bet by taking a contrary position here.
All Fed notes have to be backed by something of value. Most of that is T-bills. But, believe it or not, there is a small amount backed by gold.
Need proof? Take a look at the Fed balance sheet under "Collateral held against Federal Reserve notes". Of the $771B currency in circulation, $11B is backed by gold (the rest is T-bills). (ref: http://www.federalreserve.gov/Releases/h41/Current/)
- Re: They print money as they please.
Technically the Bureau of Engraving cannot accept orders directly from the Fed. The Fed submits requests for currency to the Treasury for approval. The Treasury then pass it on.
- Re: They have been blamed for causing the depression.
"Caused" is probably strong. "Contributed to" or "exasperated" is probably more accurate.
- Re: They have been blamed for purchasing political candidates.
That one didn't show up on the 'list of expenses' in the annual report but I may have missed it.
- Re: Since their money has no value...
'Value' is a subjective opinion. Most people who work for a living think it does have value. They probably appreciate that their grocer and landlord thing so always.
- Re: Countries on both sides of a war borrow money from the Federal Reserve.
Their balance sheet does not showing any holding of loans for foreign countries. Which countries do you think borrow from the Fed Res?
- Re: Is there a better alternative currency?
There is always room for improvement...
2007-02-27 12:25:50 · answer #1 · answered by gray shadow 6 · 2⤊ 1⤋
No, Congress is to blame for high taxes.
As for the ownership of the Federal Reserve, the 12 Federal Reserve BANKS are owned by their member banks. The Federal Reserve SYSTEM is part of the US government.
They don't print money as they please. They give banks as much money as the banks demand. The Fed controls demand by raising and lower interest rates.
The US government does not owe the Fed $9 trillion. The Fed does buy US gov debt, but they hold less than a half trillion in US debt.
2007-02-28 13:35:57 · answer #2 · answered by Quixotic 3 · 0⤊ 0⤋
No the federal reserve helps control monetary policy but it is a PRIVATE comapany and not owned by the government. Your elected officials such Senators and representatives in congress along with president are in charge of taking all your hard earned money. They spend it freely. the government per say has no money only the taxes it takes from the people.
2007-02-27 16:02:18 · answer #3 · answered by commonsense2265 4 · 0⤊ 0⤋
Hi taxes come from big Government. You need to vote for men and women that believe that each person is responsible for them selves. Democrat or Republican...
Vote for people that don't feel government should be in every part of our lives.
2007-02-27 10:34:03 · answer #4 · answered by Anonymous · 1⤊ 0⤋
No, while they have control over the monetary system, it's Congress that spends your money like it's theirs.
2007-02-27 10:30:40 · answer #5 · answered by DJ 7 · 3⤊ 0⤋
Oh brother!
I won't even waste the wear and tear on my keyboard.
2007-02-27 13:44:12 · answer #6 · answered by Bostonian In MO 7 · 1⤊ 1⤋
no, fed not to blame for high taxes
2007-02-27 10:31:38 · answer #7 · answered by AAAA 2 · 1⤊ 1⤋