Is it true that the Federal reserve bank is a privately own bank? Not a branch of the government?
I was told that the federal reserve was a privately own bank control by international bankers. That they print and charged our goverment interest for it bills. Interest that has to be paid by the money they mint? if this is true, what happen to the monoply rules that broke up ma bell?
- gray shadowLv 61 decade agoFavourite answer
No - that's the stuff of the conspiracy web sites. And it is easily discredited with just a little research.
The Federal Reserve System is a congressionally-chartered agency like the USPS and NASA. It is organized with a 100% government agency at the top (the Board of Governors), and branches beneath them that resemble corporations. (http://www.federalreserveeducation.org/fed101/stru... )
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; it is a government agency. Board members are forbidden by law to have any economic interest in a private bank. (Ref: Title 12 chapter 3 of the U.S. Legal Code). The Board determines monetary policy and provides high level oversight of the branches.
The 12 branches, however, are organized to involve member banks in the day-to-day operation. Member banks are required to buy shares in their branch. Each bank has one vote. The shares get a standard 6% dividend. They can vote for 6 of their 9 board members. Though the number of shares is in relation to te bank assets, each bank has only one vote for board members. All 'profit' from the Federal Reserve branches are turned over to the Treasury at the end of the year. (that's been about 95% since 1913).
Clearly the Board of Governors and the system itself is not private. But are the Fed branches 'private'? The unique duality of control allows for reasonable peple to argue either side. Certainly it is not privately 'owned' in the classic sense as shares never change in value, have no relationship to the worth of the bank, and cannot be sold to the open market. However, the ability to vote for most of their directors (of which are usually almost approved by the Board of Governors) gives the member banks considerable control of the day-to-day operations. Another telling sign is the Board of Governors are paid as Federal employees while the branches use their own payroll system. In the court ruling "Lewis vs US", it was determined that the branches can be considered 'private' for the purposes of tort law (i.e. they can be sued) relative to the day to day operations, but probably not where they are performing official government functions. To put it into terms people can relate to, I would equate this branch control as outsourcing of a government controlled function; similar to how congress might hire Kinkos to run a print shop in the capital building.
- Re: International bankers...
By law, member banks have to be domestic.
- Re: Print and charge our government interest?
A grain of truth but not enough to be concern.
By law, all currency is collateralized (backed by something). The collateral of choice is T-Bills purchased on the open market (i.e. from the public). The Fed collects interest on those. Then, at the end of the year, rebates almost all to the Treasury, only keeping what is needed to cover expenses.
There are a lot a lot of wacko conspriacy sites out there on the subject. Be sure to check it out for yourself.
- 1 decade ago
The Federal Reserve is a privately owned bank. They have controlled America since 1913. They are the reason for all of the boom/bust cycles. Remember the very first stock market crash in 1929? The 12 years that preceded it were full of people seemingly rolling in "wealth".
How about the "big 80's" followed by black Monday?
The really disturbing thing about this UNBELEIVABLY powerful group of people is that we the people do not have the ability to vote Ben Bernanke or any of the other board members out of their positions. They are all appointed. Mr. Bernanke's term will be a lenghthy 14 years!Guess who appointed Bernanke? George Bush. maybe that's why the very rich are getting so much richer and the poor are becoming ever more destitute?
- Anonymous4 years ago
definite, it bothers me very lots. do away with The Federal Reserve financial corporation. sparkling up ninety% of the U. S. and the international issues. a million)FR prints and lend $a million to the gov at 10% pastime fee 2) The gov has $ a million in hand yet owes $ a million.10, cycle maintains. 3) The gov has no income, it is why FR created the IRS to scouse borrow individuals money 4) our finished Federal Tax is going to pay what gov owes to FR. and that money end's up in Europe in some Elites bankers wallet. who insults our Constsitions like this. "provide me administration of a rustic's money and that i care not who makes it is rules" Mayer Amschel Buer Rothschild ( Freaking long call ! lol ) Rothschild family individuals Banker ; important Stockholder interior the Federal Reserve. Regards.
- MenckenLv 51 decade ago
Yes, that is true. Go to Google video and watch Fiat Empire or America; From Freedom to Fascism.
“Since I entered politics, I have chiefly had men's
views confided to me privately. Some of the biggest
men in the United States —in the fields of commerce
and manufacturing—are afraid of somebody. They know
that there is a power somewhere so organized, so
subtle, so watchful, so interlocked, so complete, so
pervasive, that they had better not speak above their
breath when they speak in condemnation of it.” -
“A financial element in the large centers has owned
the government since the days of Andrew Jackson.” -
In 1913, Woodrow Wilson signed the Federal Reserve
Act. A few years later he wrote: "I am a most unhappy
man. I have unwittingly ruined my country. A great
industrial nation is controlled by its system of
credit. Our system of credit is concentrated. The
growth of the nation, therefore, and all our
activities are in the hands of a few men. We have come
to be one of the worst ruled, one of the most
completely controlled and dominated Governments in the
civilized world no longer a Government by free
opinion, no longer a Government by conviction and the
vote of the majority, but a Government by the opinion
and duress of a small group of dominant men."
The real rulers of Washington are Invisible and
exercise power from behind the scenes. - Justice Felix
Frankfurter - US Supreme Court Justice
The real menace of our Republic is the invisible
Government which like a giant Octopus, sprawls its
slimy legs over our cities, states, and nation. - John
F. Hylan - Mayor NYC 1918-1925
"Give me control of a Nation's money and I care not
who makes the laws." - Mayer Amschel Bauer
"We shall have World Government. Whether or not we
like it. The only Question is whether World Government
will be achieved by conquest or consent." - James Paul
Warburg , Foreign agent for the Rothschild dynasty -
Major Player in the Federal Reserve act scam / Feb.
17, 1950 speaking before the U.S. Senate.
"It is well enough that people of the nation do not
understand our Banking and Monetary system, for if
they did, I believe there would be a Revolution before
tomorrow morning." - Henry Ford
"I believe that banking institutions are more
dangerous to our liberties than standing armies. If
the American people ever allow private banks to
control the issue of their currency, first by
inflation, then by deflation, the banks and
corporations that will grow up around [the banks] will
deprive the people of all property until their
children wake-up homeless on the continent their
fathers conquered. The issuing power should be taken
from the banks and restored to the people, to whom it
properly belongs." -- Thomas Jefferson
- What do you think of the answers? You can sign in to give your opinion on the answer.
- 1 decade ago
Yes it's true. They are the rich ones, they get all the info before it comes out, like all the best stocks and all the other money making schemes.
- Anonymous1 decade ago
Yes, it's true. Do a google search and you'll get pages and pages of information on it.