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What is the Federal Reserve System?
The Federal Reserve System web site ^
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| Agents of the Governors of the Federal Reserve System
Posted on 06/07/2003 11:49:08 AM PDT by Jack Black
What is the Federal Reserve System?
The Federal Reserve System, also known as the Fed, is the central bank of the United States. It was created by the Congress with the passage of the Federal Reserve Act in 1913. The Federal Reserve System is composed of a central, governmental agency--the Board of Governors--in Washington, D.C., and twelve regional Federal Reserve Banks located in major cities throughout the nation.
What are the Federal Reserve's responsibilities?
The Federal Reserve System was chartered in 1913 to provide the nation with a safer, more flexible, and more stable monetary and financial system. Over the years, its roles have evolved and expanded. Today, the Federal Reserve's duties include conducting the nations monetary policy by influencing money and credit conditions in the economy in pursuit of full employment and stable prices; promoting the stability of the financial system; providing banking services to depository institutions and to the federal government; and ensuring that consumers receive adequate information and fair treatment in their interactions with the banking system.
Who owns the Federal Reserve?
The Federal Reserve System is not "owned" by anyone and is not a private, profit-making institution. Instead, it is an independent entity within the government, having both public purposes and private aspects.
As the nation's central bank, the Federal Reserve derives its authority from the U.S. Congress. It is considered an independent central bank because its decisions do not have to be ratified by the President or anyone else in the executive or legislative branch of government, it does not receive funding appropriated by the Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms. However, the Federal Reserve is subject to oversight by the Congress, which periodically reviews its activities and can alter its responsibilities by statute. Also, the Federal Reserve must work within the framework of the overall objectives of economic and financial policy established by the government. Therefore, the Federal Reserve can be more accurately described as "independent within the government."
The twelve regional Federal Reserve Banks, which were established by the Congress as the operating arms of the nation's central banking system, are organized much like private corporations--possibly leading to some confusion about "ownership." For example, the Reserve Banks issue shares of stock to member banks. However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold or traded or pledged as security for a loan; dividends are, by law, 6 percent per year.
The earnings of the Federal Reserve System come primarily from interest received on the Reserve Banks' holdings of U.S. government securities (which are used in the conduct of monetary policy) and from fees they charge depository institutions for providing services (such as processing and clearing checks). The expenses of the System are paid from these earnings. Any net earnings are paid yearly to the U.S. Treasury. For 2001, the payment was $27.14 billion.
How is the Federal Reserve funded?
The income of the Federal Reserve System is derived primarily from the interest on U.S. government securities that it has acquired through open market operations. Other sources of income are the interest on foreign currency investments held by the System; fees received for services provided to depository institutions, such as check clearing, funds transfers, and automated clearinghouse operations; and interest on loans to depository institutions (the rate on which is the so-called discount rate).
After it pays its expenses, the Federal Reserve turns the rest of its earnings over to the U.S. Treasury. About 95 percent of the Reserve Banks' net earnings have been paid into the Treasury since the Federal Reserve System began operations in 1914. (Income and expenses of the Federal Reserve Banks are included in the annual report of the Board of Governors.)
(Excerpt) Read more at federalreserve.gov ...
TOPICS: Constitution/Conservatism; Government; Miscellaneous
KEYWORDS: alangreenspan; banking; centralbanking; currency; fed; federalreserve
To: Jack Black
re:
The Federal Reserve System was chartered in 1913 to provide the nation with a safer, more flexible, and more stable monetary and financial system Bahahahahahahahahaha!
Suggested reading:
The Creature from Jekyll Island
2
posted on
06/07/2003 11:57:59 AM PDT
by
tomakaze
To: tomakaze
I made it through it but regretted the effort.
To: Jack Black
Their Q & A forum could be limited to this statement. The federal reserve system is owned by bankers who make money from government bonds, allowing for the deficit spending of the United States Government.
Would that be too honest for the American public?
4
posted on
06/07/2003 12:27:31 PM PDT
by
vpintheak
(Our Liberties we prize, and our rights we will maintain!)
To: Jack Black
"The Federal Reserve System is not "owned" by anyone and is not a private, profit-making institution."What a crock of, uh, you know...
To: tomakaze
Bahahahahahahahahaha! This sounds like a well-reasoned critique of an intelligent person.
Glad to meet you.
6
posted on
06/07/2003 12:39:31 PM PDT
by
TopQuark
To: TopQuark
re: This sounds like a well-reasoned critique of an intelligent person.
Sorry but that bald faced lie from the fedreserve site was so hilarious it made me blow coffee out my nose.
Here lemme wipe your screen {sqweeeek sqweeek] all done.
seriously though, at the risk of being labeled a "tinfoil commando" by whoevers on "shout it down/brownshirt duty" today, Jekyll Island is worth a look, and while I'm at, so is None Dare Call it Conspiracy.
7
posted on
06/07/2003 1:06:00 PM PDT
by
tomakaze
To: Jack Black
re:I made it through it but regretted the effort.
You're not saying you're eating up the malarkey the fed's put out are you?
Hell I thought you posted their fable for humor/irony's sake
8
posted on
06/07/2003 1:07:56 PM PDT
by
tomakaze
To: tomakaze
My response exactly!!!! Just 15 years before the great depression.
9
posted on
06/07/2003 4:56:44 PM PDT
by
jammer
To: Jack Black
I'd like to see them comply, just once, to Congress' anual request to show them "the books".
To my knowledge, this has never happened.
10
posted on
06/07/2003 6:00:08 PM PDT
by
martian_22
(In Mel Brooks we trust.)
To: tomakaze
I just thought it was extremely obtuse, poorly written and boring. Thats all.
To: Jack Black
I just thought it was extremely obtuse, poorly written and boring. Thats all.
Damn! there gos my pulitzer. I figured a guy respoding to somthign off the cuff from th gut stood a chance. evidently not. good thing i gots a day job. lol.
12
posted on
06/07/2003 10:42:44 PM PDT
by
tomakaze
To: martian_22
To my knowledge, this has never happened.
Love to see this happen myself, but it aint never happened in my lifetime either (born 1968)
13
posted on
06/07/2003 10:44:32 PM PDT
by
tomakaze
To: Jack Black
Lies, Lies, Lies, and more Lies.
14
posted on
06/07/2003 10:48:51 PM PDT
by
c-b 1
To: tomakaze
Hey buddy, it was The Creature from Jekyll Island I was referring to, not your post! I just thought it was long and kinda trying to hard to be a mystery story. I would have liked a more straight forward, short and expository style of book. Something like "The Fed for Dummies". Actually, despite the fact that he's a liberal economist, I found John Gallbraith's "Money" a very good book. It is a history of money from ancient time to the the present. Fractional Reserve banking and Central banking are both pretty well explained in it.
To: Jack Black
The Reserve Banks are not operated for profit, Neither technically are the Girl Scouts and their cookies bwa ha ha ha ha hah!
Seriously, folks, Greenspan was a programmer, not an accountant.
16
posted on
06/08/2003 3:25:29 PM PDT
by
txhurl
(Now on fourth daquiri, if anybody's wondering.)
To: Jack Black
re:Hey buddy, it was The Creature from Jekyll Island I was referring to, not your post!
heheheheh, yeah I caught that after the fact. (thats what i get for multi-tasking.)
I would have liked a more straight forward, short and expository style of book.
Ditto on that. This bleeds over into other media as well (radio for instance).
At the time Jekyll was the only book I whose title I could remember on the subject.
I'll have to see If i can dig up a copy of this Gallbraith's book.
17
posted on
06/09/2003 6:02:59 AM PDT
by
tomakaze
To: Jack Black
Help me out here: is it the Bilderbergers, the Illuminati or the B'nai B'rith that owns the Fed Res? I am confused...
18
posted on
06/09/2003 6:10:14 AM PDT
by
Pharmboy
(Dems lie 'cause they have to...)
To: tomakaze
"The Federal Reserve System was chartered in 1913 to provide the nation with a safer, more flexible, and more stable monetary and financial system." missing: ....for its' member banks" "The Federal Reserve System is not "owned" by anyone and is not a private, profit-making institution." No, it is not owned by anyone it is owned by specific corporations, eg; its member banks. And it is nothing if not a private institution. Absolute complete and total lies.
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