Am I wrong?

Question

Based on my research I was under the impression that the Fed Reserve is privately owned.. But this is the response I recieved "The Federal Reserve System is not privately owned. Like every other federal department it does business with and through private institutions. Fed net revenues are rebated to treasury - not paid in dividends to shareholders so it is not a "for profit" business. Inflation rates have been lower and more stable in the last 30 years than most of history. All banks create money out of nothing. M1 - the amount of currency and federal bank guarantees in the economy has not grown substantially since the early1990s."

Is this accurate?

And you can you provide facts or links, (valid ones) that support your statements..
thanks

Thank you all for the information, I will look into the links. This was a response I recieved from a poster that I wasn't sure about..

Enn, I've already checked there, and btw this an open question and answer forum..

Answer 1

If in fact the Federal reserve was part of the US government, wouldn't it have made sense to have all 50 states governors directly involved in all decision making when it came to "coining money"? Of course in the constitiution it stipulates that (correction as pointed out) No states have the power to coin money, but it had to be done so in Silver and/or gold. And why are there only "12 locations for the federal reserve instead of 50? that and the mere fact that the (13th)(correction as pointed out :16th) amendment was also another never properly ratified by the states either. Also keep in mind the only times before 1913 where fiat currency had been used was during times of war. Thus it should begin to make perfect sense to most why World War I was truly started. not because of a railroad(as originally most of us had learned) but because now they had gained their control of a very powerful nation(which in itself was also an experiment at its very beginning) to set the world up for the globalization we see today through slavery. Money was originally designed as a means of exchange only, not giving any weight whatsoever to power. Because power(if its physically implemented) only really exists in "KNOWLEDGE" not "MONEY". if the "people" were to ever to return to a "silver and/or gold standard' the banks would lose their power over the people(even as individuals). Not because MONEY is POWER, but because the people would have gained the "KNOWLEDGE" the the current credit system they currently operate under is nothing more than thin air with no real substance being offered in exchange for their(i.e. the peoples) KNOWLDEGE. Its a win win for the bad guys at that point, but could fall like a house of cards if the ppl ever become "aware" or learn of the "KNOWLEDGE" that they are receiving nothing and giving all. The benefits should in all actuality be beneficial for everyone, not just those with the knowledge and implementing this vast "FRAUD" upon the ppl. (Corrections made. My apologies)(However the 16th was still not properly ever ratified.) The FEDERAL RESERVE NOTE IS MERE "LEGAL" tender, not lawful. It is still fiat currency based.( Fractional Reserve Lending exposes that fact quite well.) How many ppl do you honestly think will get seriously pissed off when they find out exactly how lending really works. You will not stand a chance. However i do offer my apologies for my listed mistakes earlier.(Corrections were made) Good day. If the FEDERAL RESERVE BANK was truly a government "entity" as people are led to believe. I guarantee you that an office would be found in every damn state, just like the Social Security administration. Hmm, Same goes for the IRS. Funny how neither have locations in every state isn't it?But Social Security is.


And by the way, the problem of war over archaic fossil fuels for energy can now be diminished as well. But the people must so choose it to be. It would also alleviate the problem with trying to dictate to other nations that they must denominate in any certain fiat currency or else. This is the second tier from the top which also directly correlates with all other tiers.

Designing and implementing a redundant something that utilizes and mutually benefits the five common elements(Yes i said 5)
1. Earth
2. Wind
3. Fire
4. water

And
5. Humanity.
AELLCTITAN5B.

True "progression" though true "conservative" method.

The Balance.

The Eureka!!!(So to speak).

The true meaning of what i believe to represent the "Y" gentlemen.

Answer 2

I have heard this story for years about the FED being owned by the banks and have read a lot on it and watched what has been going on and to this day I can't say because they will not allow a public audit of their books so you can see the money trail. There is a part of it that is in the government but then the rest of it looks seperate and until the books are laid open to see which way each dollars has gone the question will remain unanswered.

Answer 3

I believe the federal reserve is one of the few federally owned institutions. The FDIC would be an example of one that is not. You are correct, we have had less unemployment and an over all great economy comparatively over the past 100 or more years. The liberal media would like us to believe otherwise. Report the bad news, ignore the good or put it on the back pages. The Federal Reserve controls $ and definitely creates it through the treasury department, and controls interest rates to stimulate or depress the sales and purchases. Theoretically, they are burning the old $ and just replacing it with the new.

The banks themselves however do not create money, though it can be argued considering the wireless exchanges that take place daily.

Answer 4

Well that is not easy to answer but it has been proven in court that it has qualities of that of a private corporation, and very few of a government agency. but I would check with them directly.

In Lewis v. United States,[17] the United States Court of Appeals for the Ninth Circuit stated that "the Reserve Banks are not federal instrumentalities for purposes of the FTCA [the Federal Tort Claims Act], but are independent, privately owned and locally controlled corporations." The opinion also stated that "the Reserve Banks have properly been held to be federal instrumentalities for some purposes."

Answer 5

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Answer 6

I was taught in my college econ courses that the Federal Reserve was/is primarily privately owned. The bank's history is closely tied to the Council of Foreign relations by way of Edward House. The member banks of the Federal Reserve typically trade stocks publically, so profits do go directly to the private member banks in this way.

The United States does operate off of fiat money(credit based currency), as members of the CFR and other organizations via Bretton Woods made gold money illegal. Fiat money is an important part(to those who desire it) of expanding global capitalism.

Answer 7

The answer to this seemingly simple question isn't really so simple.

Is the Federal Reserve privately owned?
In reality, no it is not. It is setup similar to a private corporation, but the "shares" of a Federal Reserve district bank do not confer any rights of ownership to the holders beyond their par value and the right to elect SOME of the board members of the district bank.

The Federal Reserve system is setup in accordance with LAW. That law can be found in Title 12, Chapter 3 of the U.S. Code. http://www.law.cornell.edu/uscode/html/uscode12/usc_sup_01_12_10_3.html
Careful reading of that law can explain the Federal Reserve, but I give a brief synopsis.

The leadership of the system is provided by the Board of Governors of the Federal Reserve, also known as the Federal Reserve Board or the Fed. The board consists of the seven governors, appointed by the president and confirmed by the Senate. Governors serve 14-year, staggered terms to ensure stability and continuity over time. The chairman and vice-chairman are appointed to four-year terms and may be reappointed subject to term limitations.

The Board also exercises broad supervisory control over the financial services industry, administers certain consumer protection regulations, and oversees the nation's payments system. The Board oversees the activities of Reserve Banks, approving the appointments of their presidents and some members of their boards of directors. The Board sets reserve requirements for depository institutions and approves changes in discount rates recommended by Reserve Banks.

The Board funds its operations by assessing the Federal Reserve Banks rather than through Congressional appropriation. This to maintain its independence from political influence. Its financial accounts are audited annually by a public accounting firm, and these accounts are also subject to audit by the General Accounting Office.

A network of 12 Federal Reserve Banks and 25 branches make up the Federal Reserve System under the general oversight of the Board of Governors. Reserve Banks are the operating arms of the central bank.

The Reserve Banks serve banks, the U.S. Treasury, and, indirectly, the public. A Reserve Bank is often called a "banker's bank," storing currency and coin, and processing checks and electronic payments. Reserve Banks also supervise commercial banks in their regions.

National banks, like Bank of America, N.A., are required to become member banks of the Federal Reserve system. To be a member bank, a bank must "subscribe" to shares of a Federal Reserve district bank. Unlike shares in a normal public corporation, these shares cannot be sold, traded, or even given away. In fact, the number of shares a member bank subscribes to is set by the Federal Reserve Board as a percentage of the member banks capital. I believe that is currently 3%. So, if a member bank has paid-in capital of $1 billion, the bank would have to subscribe to $30 million of Federal Reserve stock. The value of the stock is set to $100 per share and the value does not go up and does not go down. To compensate the member banks for the loss of revenue this amount would have generated, Federal Reserve district bank shares pay an annual dividend of 6%. Approximately 38% of the over 8,000 commercial banks in the U.S. are member banks of the Federal Reserve system. BTW, the number of shares in a Federal Reserve bank is flexible. If a new national bank was incorporated, the district bank would simply issue more shares to account for the new "subscription" of the new bank. The value of shares in the district bank would not change. As I mentioned, national banks must be members and state banks may become members if they meet certain requirements. The key to distinguish between the member banks owning the district banks and whether the federal government does is which would get the assets of the district banks. The member banks would only receive the amount of money they paid to subscribe to the shares. Any excess assets above that amount would revert to the U.S. Treasury. That is your answer.

Does the Federal Reserve rebate net revenues to the U.S. Treasury?
Yes, it does. This can be seen in the INDEPENDENTLY AUDITED financial statements of the Federal Reserve Banks. Anyone who says the Federal Reserve has never been audited, didn't look very hard. The audit reports are part of the ANNUAL REPORTS to Congress. The following is the link to the 2006 annual report.
http://www.federalreserve.gov/boarddocs/rptcongress/annual06/default.htm
Audits of the Board of Governors and Federal Reserve Banks can be found at http://www.federalreserve.gov/boarddocs/rptcongress/annual06/pdf/audits.pdf
On page 3 is the independent auditor's report on the financial statements of the Board of Governors. The financial statements and notes follow that report.
On page 21 is the independent auditor's report on the combined financial statements of the Federal Reserve Banks. On page 23, the statement shows a $29 billion payment to the U.S. Treasury.

Do all banks create money out of nothing?
In simplest terms, yes. This is because of fractional banking. When a person deposits money in a bank, the bank is allowed to make a loan to another person based upon the amount of money on deposit less a small amount held in "reserve". If you want to know exactly how much money in federal reserve notes (dollar bills) is actually circulating, it can be found on the financial statements of the Federal Reserve Bank too. On page 22 of the audited statement, under liabilities, it shows there are a little over $783 billion in Federal Reserve notes outstanding.

Have inflation rates been lower and more stable in the last 30 years than most of history?
Debatable, but the Federal Reserve has for the most part since the mid-1930s, done a fairly decent job controlling inflation.

EDIT: Article 1, Section 8 states, "The Congress shall have the power...To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;..."
Article 1 Section 10 states, "No State shall...coin Money; make anything but gold and silver a tender in the payment of debts." This is a limitation on STATE power, not on the power of Congress. Congress can make money out of anything it wants to.

Why are there only 12 locations? Because at the time, and mostly still are, the financial centers and most business were located in those areas. There doesn't have to be 50 Federal Reserve Banks, there is no need.

What does the 13th amendment have to do with the Federal Reserve? The 13th amendment concerns slavery. So you think it wasn't properly ratified? Do you tell all of your African-American friends that slavery is still constitutional? If you meant the 16th amendment, that doesn't have anything to do with the Federal Reserve either. The 16th amendment concerns income tax. The 16th amendment was properly ratified, but even if it wasn't, precedence and 90 years of court cases say it was. Therefore, it is now a part of the Constitution and it will take another Constitutional amendment to remove it.

Answer 8

Uhm, have you ever considered going to the source?

Why not get an e-mail address from someone who works there and get the real answer?

http://www.federalreserve.gov/

is the website for the Federal Reserve Bank. Why not ask them directly instead of the rest of us?

Answer 9

That is just spin. Its owned by the British bankers and they basically control everything. Someone is making a profit on the interest. Come on!! LOL

Rotheschild, Rockafeller they are the ones who own the bank somewhere along the line

Answer 10

justanotherjoe has it right....