The link below claims "Nobody actually owns the Federal Reserve, just as nobody actually owns the U.S. Congress or the U.S. Department of Justice."
That is like saying nobody owns Apple Corporation. The share holders own it.
Since there is so much misinformation about the FRS I thought I would create this thread to help us all understand more about the FRS and other central banks around the world.
Why does the FRS earn money from U.S. government securities it owns through everyday market transactions? Since they claim to be a non-profit organization why don't they just send the government a bill?
If you live in a country other than the USA, does your country's central bank operate in the same way? If not, how is it different than the Federal Reserve System?
https://www.thestreet.com/markets/what-is-federal-reserve-purpose-14723711
@metal-brain saidhe Fed earns interest on the interest-bearing government securities it holds in its portfolio and sells financial services to banks. This amount is reported each year in its annual report. The Fed’s earnings typically far exceed its expenses. However, unlike for profit corporations, the Fed distributes any profit (after costs) to the U.S. Treasury. In 2002, the Fed’s operating revenues were $26.7 billion, expenses total $2.2 billion, and $24.5 billion was paid to the treasury as “interest on Federal Reserve Notes.” The graph below displays the flow of the Fed’s annual payments to the U.S. Treasury for the past five years.
The link below claims "Nobody actually owns the Federal Reserve, just as nobody actually owns the U.S. Congress or the U.S. Department of Justice."
That is like saying nobody owns Apple Corporation. The share holders own it.
Since there is so much misinformation about the FRS I thought I would create this thread to help us all understand more about the FRS and other ...[text shortened]... ederal Reserve System?
https://www.thestreet.com/markets/what-is-federal-reserve-purpose-14723711
https://www.frbsf.org/education/publications/doctor-econ/2003/september/private-public-corporation/
@no1marauder saidWhy?
he Fed earns interest on the interest-bearing government securities it holds in its portfolio and sells financial services to banks. This amount is reported each year in its annual report. The Fed’s earnings typically far exceed its expenses. However, unlike for profit corporations, the Fed distributes any profit (after costs) to the U.S. Treasury. In 2002, the Fed ...[text shortened]...
https://www.frbsf.org/education/publications/doctor-econ/2003/september/private-public-corporation/
When people hire contractors to do a service they are usually paid after the job is done. Have you ever handed a contractor a wad of money and told him to pay you back after he did the job?
12 Nov 18
@metal-brain saidWhen people hire contractors to do a service they are usually paid after the job is done.
Why?
When people hire contractors to do a service they are usually paid after the job is done. Have you ever handed a contractor a wad of money and told him to pay you back after he did the job?
The structure of many parts of our Federal Government were not designed function the same way as for profit businesses do, in addition, the word capitalism does not appear in our Constitution.
@metal-brain saidWhile on the subject, could you please explain to me why the "don't tread on me" crowd has such a hard-on for the Federal Reserve?
The link below claims "Nobody actually owns the Federal Reserve, just as nobody actually owns the U.S. Congress or the U.S. Department of Justice."
That is like saying nobody owns Apple Corporation. The share holders own it.
Since there is so much misinformation about the FRS I thought I would create this thread to help us all understand more about the FRS and other ...[text shortened]... ederal Reserve System?
https://www.thestreet.com/markets/what-is-federal-reserve-purpose-14723711
What in particular is it about this fairly routine institution that has the super-libertarians' panties in a twist?
Do you guys just not believe the federal government should have the power to run a bank? The question was litigated back in 1819 (McCulloch v. Maryland), but something tells me this is more than just a constitutional law issue to you fellas.
@sh76 saidThe FRS is privately owned by shareholders. The names of those shareholders are a closely guarded secret. Since for all you know the shareholders could be the owners of the big banks that were bailed out, it is time to know who they are.
While on the subject, could you please explain to me why the "don't tread on me" crowd has such a hard-on for the Federal Reserve?
What in particular is it about this fairly routine institution that has the super-libertarians' panties in a twist?
Do you guys just not believe the federal government should have the power to run a bank? The question was litigated back in 1819 ...[text shortened]... . Maryland), but something tells me this is more than just a constitutional law issue to you fellas.
https://www.cnbc.com/id/45674390
29 trillion is more than the national debt! The FRS created all that inflation and we still are burdened with all of this debt? Perhaps the 29 trillion estimate is overstated, but doesn't that show that the FRS could have paid off the national debt?
The whole purpose of bailing out the big banks was to give them the money to lend out again. That was important to prevent deflation, but they didn't lend. They sat on the money and the money supply contracted anyway. That led to quantitative easing to increase the money supply to prevent deflation since the banks would not lend.
It was all for nothing. Letting the banks fail would have resulted in the same thing, no lending. QE would have been necessary to prevent deflation, but the bailout would not have been necessary at all!
It was the biggest heist in world history. If the shareholders are not the same people that own the big banks I will eat my dick. It is time for their names to be revealed!
12 Nov 18
@mchill saidI take that to mean you are saying they don't have the money because they are non-profit (claim to be anyway). Where does the FRS get the money to buy the Treasury bonds?
When people hire contractors to do a service they are usually paid after the job is done.
The structure of many parts of our Federal Government were not designed function the same way as for profit businesses do, in addition, the word capitalism does not appear in our Constitution.
@metal-brain saidThe purpose of the bailouts was to alleviate the immediate liquidity issues of certain banks and other financial institutions to stabilize the financial markets. It worked.
The FRS is privately owned by shareholders. The names of those shareholders are a closely guarded secret. Since for all you know the shareholders could be the owners of the big banks that were bailed out, it is time to know who they are.
https://www.cnbc.com/id/45674390
29 trillion is more than the national debt! The FRS created all that inflation and we still are b ...[text shortened]... he same people that own the big banks I will eat my dick. It is time for their names to be revealed!
@metal-brain saidThe Federal Reserve predated TARP by almost 100 years and TARP was passed by Congress, not the Fed.
The FRS is privately owned by shareholders. The names of those shareholders are a closely guarded secret. Since for all you know the shareholders could be the owners of the big banks that were bailed out, it is time to know who they are.
https://www.cnbc.com/id/45674390
29 trillion is more than the national debt! The FRS created all that inflation and we still are b ...[text shortened]... he same people that own the big banks I will eat my dick. It is time for their names to be revealed!
I still don't understand why you and Ron Paul are so angry at the Fed.
@metal-brain saidBy the way, inflation has been historically very low since TARP was passed.
The FRS created all that inflation and we still are burdened with all of this debt?
https://www.thebalance.com/u-s-inflation-rate-history-by-year-and-forecast-3306093
@kazetnagorra said.....so it would increase lending and prevent inflation. It didn't and failed.
The purpose of the bailouts was to alleviate the immediate liquidity issues of certain banks and other financial institutions to stabilize the financial markets. It worked.
Where did you get your revisionist history from? Ben Bernanke?
@kazetnagorra saidThat ranks up there with some of the most ignorant statements you have made. Apparently all Dutch people who don't live in the Netherlands are ignorant snobs.
All libertarians are uneducated. You should not expect them to have rational objections to economic policy.
@metal-brain saidAs sh76 pointed out already, inflation has been at a steady, low rate for decades.
.....so it would increase lending and prevent inflation. It didn't and failed.
Where did you get your revisionist history from? Ben Bernanke?