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The Federal Reserve is part of the government.
by mandelbrotwurst 8y ago
The Federal Reserve is part of the government.
- brokensegue 8y agoand the federal reserve doesn't (literally) print the money...
- gammateam 8y agoAt their discretion they can buy an asset and the person they bought from now has money that didnt previously exist This is what is being referred to as printing, but yes its just an unlimited asset issuance function in the currency class of a program
- labster 8y agoYes, but every bank can create money through lending, you don't need a to be a government agency to do that. The Fed just has less limits because it can just add arbitrary amounts of currency to its balance sheets.
- taysic 8y agoBanks in theory have consequences for lending more than is reasonably available to them. The Fed really can create money out of thin air. That's a big difference.
- deleted 8y ago[deleted]
- brianpgordon 8y agoAs long as they satisfy their capital requirements, banks can lend as they please. They tend not to make really bad loans because directors are legally beholden to shareholders to ensure management is appropriately managing risk. The Fed doesn't tend to print trillions of dollars for no particular reason because it is legally beholden to its dual mandate. It's not that different. Yes the Fed can create "reserve currency" and banks can only create "commercial currency" but the distinction is a technical one and doesn't have a whole lot of macroeconomic impact.
- taysic 8y agoThe Fed has mandate that has nothing to do with the motivation of the banks. That's a huge difference - they create money for entirely different reasons. And yes, the Fed has an enormous macroeconomic impact obviously.
- brianpgordon 8y agoI don't think you actually responded to anything that I said, so I'm not sure how to reply. Did you just sort all of the words in my comment and pick some at random to respond to?
- deleted 8y ago[deleted]
- JohnWilcox 8y agoSorry to be the one to break it to you, but that is the biggest lie and ruse and deception about the Federal Reserve. The Federal Reserve is a privately owned entity that controls our money, owned by nebulous owners that are not at all clear, but hopefully at the very least owned by American banks like JPM and WF. Seriously, you should look into it, but be prepared to be utterly stunned to find out the reality of matter and how a private banking cartel controls our fiat, aka, made up fantasy currency. It will shake everything you have been trained to believe like a good slave.
- miles 8y ago> The Federal Reserve is part of the government. Not exactly: The Federal Reserve is not an Agency of the Federal Government https://www.youtube.com/watch?v=n9zpBCFe_k8 https://www.youtube.com/watch?v=n9zpBCFe_k8 May be one of the few things that those on the far right and left agree on: Dennis Kucinich: The Federal Reserve is no more Federal than Federal Express http://www.youtube.com/watch?v=J0-oxd7CdU8&t=3m42s http://www.youtube.com/watch?v=J0-oxd7CdU8&t=3m42s Democrats Kill Rand Paul's Audit the Fed Bill, Though Sanders Votes Yes https://www.usnews.com/news/articles/2016-01-12/democrats-kill-rand-pauls-audit-the-fed-bill-though-sanders-votes-yes https://www.usnews.com/news/articles/2016-01-12/democrats-ki... Glenn Beck: The Federal Reserve Is Destroying America https://www.glennbeck.com/2017/06/02/the-federal-reserve-is-destroying-america/ https://www.glennbeck.com/2017/06/02/the-federal-reserve-is-... "End the Fed", book by Ron Paul https://en.wikipedia.org/wiki/End_the_Fed https://en.wikipedia.org/wiki/End_the_Fed
- mandelbrotwurst 8y agoI know they're considered "independent", that said they're still a central authority created by Congress to control the money supply whose members are presidentially appointed, with a .gov domain name to boot.
- rapsey 8y agoFed Board of Governors are appointed and a part of the government. The actual Fed banks themselves are owned by commercial banks.
- godzilla82 8y agoBut do they report to the government?
- edoo 8y agoWhen you understand this the obvious question becomes why are we paying interest on our own money to a multinational organization.
- 8y ago