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This is interesting -- I didn't know the Federal Reserve was allowed to turn a profit. I guess it makes sense, though. My instinct is: well, that's great! (Pr
by rwl 16y ago
This is interesting -- I didn't know the Federal Reserve was allowed to turn a profit. I guess it makes sense, though. My instinct is: well, that's great! (Proof that a government entity can be run profitably!) But even if it couldn't make a profit, that wouldn't be an argument for not having a central bank, or for making drastic cuts to its operations in order to make it profitable. The point is that we have these institutions because we need them to serve a certain function, whether or not they can do so profitably.
- noelchurchill 16y agoThe Fed is not a government entity. It's a private for profit company.
- anonymous246 16y agoSomebody downvoted you instead of replying. I upvoted, but looks like the Stackoverflow-like algo pg has didn't count my vote. Or the person who downvoted you has a posse. Anyway, here's a web page with an extract from the US federal court: http://www.healthfreedom.info/Federal_Reserve_Fraud.htm http://www.healthfreedom.info/Federal_Reserve_Fraud.htm "Examining the organization and function of the Federal Reserve Banks, and applying the relevant factors, we conclude that the Reserve Banks are not federal instrumentalities for purposes of the FTCA, but are independent, privately-owned and locally controlled corporations." [Lewis vs. U.S., 680 F. 2d 1239, 1241]" See also: http://seekingalpha.com/article/125092-grand-illusion-the-federal-reserve-part-1 http://seekingalpha.com/article/125092-grand-illusion-the-fe...