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BTW you downvoters who think the Federal Reserve is the govt should read a bit https://www.federalreserve.gov/aboutthefed/section9.htm https://www.federalreser

by geggam 8y ago

BTW you downvoters who think the Federal Reserve is the govt should read a bit https://www.federalreserve.gov/aboutthefed/section9.htm https://www.federalreserve.gov/aboutthefed/section9.htm

manfredo 8y ago
The federal reserve is indeed part of the government. It has separations from the executive branch but it is indeed part of the government. The same website you linked to has an FAQ page dedicated to clearing up this misconception: https://www.federalreserve.gov/faqs/about_14986.htm https://www.federalreserve.gov/faqs/about_14986.htm > The Federal Reserve System is not "owned" by anyone. Although parts of the Federal Reserve System share some characteristics with private-sector entities, the Federal Reserve was established to serve the public interest. > Some observers mistakenly consider the Federal Reserve to be a private entity because the Reserve Banks are organized similarly to private corporations. For instance, each of the 12 Reserve Banks operates within its own particular geographic area, or District, of the United States, and each is separately incorporated and has its own board of directors. Commercial banks that are members of the Federal Reserve System hold stock in their District's Reserve Bank. 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. In fact, the Reserve Banks are required by law to transfer net earnings to the U.S. Treasury, after providing for all necessary expenses of the Reserve Banks, legally required dividend payments, and maintaining a limited balance in a surplus fund.
- geggam 8y ago
  Incorrect. That is like saying any corporation publicly traded yet regulated by the govt is now part of the govt. Any bank can apply to become a member and buy shares of the federal reserve. They simply are regulated by the govt.
  - manfredo 8y ago
    No. Again I'm really not sure why you insist on saying so given the fact that the Federal Reserve saw fit to dedicate a whole FAQ section to say otherwise. Publicly traded companies area still owned by private people and organizations. The publicly traded nature subjects them to additional oversight, but they're still private enterprises. Where can I buy stake in the Federal reserve? What was it's stock price history? We can't because nobody "owns" the federal reserve, just like nobody "owns" the FBI or the Navy.
    - geggam 8y ago
      What you cant see ? A corporation with employees becomes a member of the Federal Reserve. The job is to generate money from nothing, and get paid for it. So as a federal reserve bank you create money, charge for doing so and then you change hats from federal reserve to local private bank and loan that money to the private sector charging profits for doing so. You charge fees coming and going get salaries for both jobs and have no exposure for doing so. Bonus if your bank fails you are insured by the people who are borrowing money from you. And you think they are part of the govt
      - manfredo 8y ago
        Yes, banks can join the federal reserve system and other banks can be FDIC insured. But how do you go from that to "the Federal reserve is not part of the government". It's the central bank of the United States. Its chairman is appointed by the government. All profits are paid back to the United States. Is about as independent from the government as the FBI. Saying that the Federal reserve system is not part of the government is as non-sensical as saying the FBI is not part of the government because similar degrees of independence from the executive branch exist. I get that the fact that government agencies can be independent from the executive branch is difficult to wrap one's head around but that sort of independence is not the same as "not part of the government". Here's yet another page from the federal reserve website that explicitly says that it's part of the government: https://www.federalreserve.gov/faqs/about_12799.htm https://www.federalreserve.gov/faqs/about_12799.htm > The Federal Reserve, like many other central banks, is an independent government agency but also one that is ultimately accountable to the public and the Congress. It says right there that it is a government agency. Independent, yes, but ultimately accountable to the government. It's leadership is appointed by the government.
- geggam 8y ago
  profits yes... not operating costs and fees Bonuses and salaries of bankers are quite expensive

by geggam 8y ago

BTW you downvoters who think the Federal Reserve is the govt should read a bit https://www.federalreserve.gov/aboutthefed/section9.htm https://www.federalreserve.gov/aboutthefed/section9.htm

manfredo 8y ago

The federal reserve is indeed part of the government. It has separations from the executive branch but it is indeed part of the government. The same website you linked to has an FAQ page dedicated to clearing up this misconception: https://www.federalreserve.gov/faqs/about_14986.htm https://www.federalreserve.gov/faqs/about_14986.htm > The Federal Reserve System is not "owned" by anyone. Although parts of the Federal Reserve System share some characteristics with private-sector entities, the Federal Reserve was established to serve the public interest. > Some observers mistakenly consider the Federal Reserve to be a private entity because the Reserve Banks are organized similarly to private corporations. For instance, each of the 12 Reserve Banks operates within its own particular geographic area, or District, of the United States, and each is separately incorporated and has its own board of directors. Commercial banks that are members of the Federal Reserve System hold stock in their District's Reserve Bank. 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. In fact, the Reserve Banks are required by law to transfer net earnings to the U.S. Treasury, after providing for all necessary expenses of the Reserve Banks, legally required dividend payments, and maintaining a limited balance in a surplus fund.

geggam 8y ago
Incorrect. That is like saying any corporation publicly traded yet regulated by the govt is now part of the govt. Any bank can apply to become a member and buy shares of the federal reserve. They simply are regulated by the govt.
- manfredo 8y ago
  No. Again I'm really not sure why you insist on saying so given the fact that the Federal Reserve saw fit to dedicate a whole FAQ section to say otherwise. Publicly traded companies area still owned by private people and organizations. The publicly traded nature subjects them to additional oversight, but they're still private enterprises. Where can I buy stake in the Federal reserve? What was it's stock price history? We can't because nobody "owns" the federal reserve, just like nobody "owns" the FBI or the Navy.
  - geggam 8y ago
    What you cant see ? A corporation with employees becomes a member of the Federal Reserve. The job is to generate money from nothing, and get paid for it. So as a federal reserve bank you create money, charge for doing so and then you change hats from federal reserve to local private bank and loan that money to the private sector charging profits for doing so. You charge fees coming and going get salaries for both jobs and have no exposure for doing so. Bonus if your bank fails you are insured by the people who are borrowing money from you. And you think they are part of the govt
    - manfredo 8y ago
      Yes, banks can join the federal reserve system and other banks can be FDIC insured. But how do you go from that to "the Federal reserve is not part of the government". It's the central bank of the United States. Its chairman is appointed by the government. All profits are paid back to the United States. Is about as independent from the government as the FBI. Saying that the Federal reserve system is not part of the government is as non-sensical as saying the FBI is not part of the government because similar degrees of independence from the executive branch exist. I get that the fact that government agencies can be independent from the executive branch is difficult to wrap one's head around but that sort of independence is not the same as "not part of the government". Here's yet another page from the federal reserve website that explicitly says that it's part of the government: https://www.federalreserve.gov/faqs/about_12799.htm https://www.federalreserve.gov/faqs/about_12799.htm > The Federal Reserve, like many other central banks, is an independent government agency but also one that is ultimately accountable to the public and the Congress. It says right there that it is a government agency. Independent, yes, but ultimately accountable to the government. It's leadership is appointed by the government.
geggam 8y ago
profits yes... not operating costs and fees Bonuses and salaries of bankers are quite expensive