7 ms·

The Federal Reserve is a private company with a chair that is chosen by the President of the US with advice and consent from the Senate, and serves a four-year

The Federal Reserve is a private company with a chair that is chosen by the President of the US with advice and consent from the Senate, and serves a four-year term. There is no term limitation for this office. The reason the US government has a national debt is because that debt is owed to the Federal Reserve, which is a private bank that loans the US government money and that sets the US monetary policy.

globalreset 3y ago
... https://www.thebalancemoney.com/who-owns-the-u-s-national-debt-3306124 https://www.thebalancemoney.com/who-owns-the-u-s-national-de...
634636346 3y ago
>The reason the US government has a national debt is because that debt is owed to the Federal Reserve, which is a private bank that loans the US government money and that sets the US monetary policy. I'm pretty sure every holder of US Treasuries (including me) is owed money by the US government.
- prometheus76 3y ago
  We are both correct.
- dools 3y ago
  Not only that but the cash swapped for bonds is also a liability of the government, so it is just swapping one liability for another. What we call government debt is just an operational vestige.
yieldcrv 3y ago
public / private is a false dilemma trusts, foundations, and a host of other entities are ‘orphaned’ entities and is essentially a third category which is more accurate for the Federal Reserve as well The Board of Governors is a public entity with an appointment, and the rest of the entity has a rotation of members and pretty full autonomy on how it runs on the inside at the employee level
- landemva 3y ago
  It's a club funded by interest rate skimming with opaque structure and reporting requirements which don't conform to typical reporting requirements. CEO of Silicon Valley Bank was on BoD of SFO branch, which failed to adequately regulate SVB. https://www.svb.com/news/company-news/svb-financial-group-ceo-elected-to-the-board-of-directors-of-the-federal-reserve-bank-of-san-francisco https://www.svb.com/news/company-news/svb-financial-group-ce... "SVB Financial Group CEO Elected to the Board of Directors of the Federal Reserve Bank of San Francisco"
  - pas 3y ago
    why do you think it was a regulatory failure? it's not the Fed's job to make sure every bank has a sane business plan and rock solid conservative riskless strategy. its job is to make sure the entire system can take the stress of failing banks. the FDIC did its job too.
    - landemva 3y ago
      It's their job. https://www.federalreserve.gov/supervisionreg/topics/capital.htm https://www.federalreserve.gov/supervisionreg/topics/capital... The private club Federal Reserve branch in SFO was supposed to regulate SVB which had C-level executive on BoD of the regulator. The regulator failed to take prompt corrective action when SVB had capital inadequacy. SVB subsequently, months later, had inadequate capital to continue operating.
      - pas 3y ago
        > SVB had capital inadequacy based on which criteria?
aidenn0 3y ago
Did the Fed own significant treasuries prior to QE?
dools 3y ago
None of what you just said is true, it’s libertarian propaganda.
phpisthebest 3y ago
>>Federal Reserve is a private company with a chair that is chosen by the President of the US with advice and consent from the Senate, and serves a four-year term Sorry but no... You can not be a "Private Company" and have your leadership appointed by the President like any other Government Agency The Fed is a Government Agency, >>The reason the US government has a national debt is because that debt is owed to the Federal Reserve, Incorrect Some of the Debt is owned by a Federal Reserve, more recently as no one want to buy US Debt any more but.... >>which is a private bank that loans the US government money Again FALSE.... The Federal Reserve can not Loan the US Government anything The US Dept of Treasury issues Bonds which are sold on the Open Market, 3rd parties then Buy these Bonds, then the Fed Buys them The Fed can not legally buy Bonds directly from the US Government. How do you think Black Rock got to be do big...
- landemva 3y ago
  The Fed is a contractor with pomp and circumstance to make it appear different. Any private group charter can require their club leader to be approved by the Pres. and the Pres. may or may not play along.
  - phpisthebest 3y ago
    you may have an analogy if your "Any private group charter" was established by an act of Congress, where by the Appointment of the leader was required by law to be done by the president, with the advice and consent of congress Show me "Any private group charter" that was established by such an act of congress and i will agree with you.
    - landemva 3y ago
      Yes, Congress passed a bill 110 years ago to give a private group broad authorities. The third central bank of the USA.
  - cyberax 3y ago
    The Fed is the only entity in existence that can _create_ dollars out of thin air. US Treasury is responsible for the printed paper dollars, but only the Fed can create "digital" ones.

globalreset 3y ago

... https://www.thebalancemoney.com/who-owns-the-u-s-national-debt-3306124 https://www.thebalancemoney.com/who-owns-the-u-s-national-de...

634636346 3y ago

>The reason the US government has a national debt is because that debt is owed to the Federal Reserve, which is a private bank that loans the US government money and that sets the US monetary policy. I'm pretty sure every holder of US Treasuries (including me) is owed money by the US government.

prometheus76 3y ago
We are both correct.
dools 3y ago
Not only that but the cash swapped for bonds is also a liability of the government, so it is just swapping one liability for another. What we call government debt is just an operational vestige.

yieldcrv 3y ago

public / private is a false dilemma trusts, foundations, and a host of other entities are ‘orphaned’ entities and is essentially a third category which is more accurate for the Federal Reserve as well The Board of Governors is a public entity with an appointment, and the rest of the entity has a rotation of members and pretty full autonomy on how it runs on the inside at the employee level

landemva 3y ago
It's a club funded by interest rate skimming with opaque structure and reporting requirements which don't conform to typical reporting requirements. CEO of Silicon Valley Bank was on BoD of SFO branch, which failed to adequately regulate SVB. https://www.svb.com/news/company-news/svb-financial-group-ceo-elected-to-the-board-of-directors-of-the-federal-reserve-bank-of-san-francisco https://www.svb.com/news/company-news/svb-financial-group-ce... "SVB Financial Group CEO Elected to the Board of Directors of the Federal Reserve Bank of San Francisco"
- pas 3y ago
  why do you think it was a regulatory failure? it's not the Fed's job to make sure every bank has a sane business plan and rock solid conservative riskless strategy. its job is to make sure the entire system can take the stress of failing banks. the FDIC did its job too.
  - landemva 3y ago
    It's their job. https://www.federalreserve.gov/supervisionreg/topics/capital.htm https://www.federalreserve.gov/supervisionreg/topics/capital... The private club Federal Reserve branch in SFO was supposed to regulate SVB which had C-level executive on BoD of the regulator. The regulator failed to take prompt corrective action when SVB had capital inadequacy. SVB subsequently, months later, had inadequate capital to continue operating.
    - pas 3y ago
      > SVB had capital inadequacy based on which criteria?

aidenn0 3y ago

Did the Fed own significant treasuries prior to QE?

dools 3y ago

None of what you just said is true, it’s libertarian propaganda.

phpisthebest 3y ago

>>Federal Reserve is a private company with a chair that is chosen by the President of the US with advice and consent from the Senate, and serves a four-year term Sorry but no... You can not be a "Private Company" and have your leadership appointed by the President like any other Government Agency The Fed is a Government Agency, >>The reason the US government has a national debt is because that debt is owed to the Federal Reserve, Incorrect Some of the Debt is owned by a Federal Reserve, more recently as no one want to buy US Debt any more but.... >>which is a private bank that loans the US government money Again FALSE.... The Federal Reserve can not Loan the US Government anything The US Dept of Treasury issues Bonds which are sold on the Open Market, 3rd parties then Buy these Bonds, then the Fed Buys them The Fed can not legally buy Bonds directly from the US Government. How do you think Black Rock got to be do big...

landemva 3y ago
The Fed is a contractor with pomp and circumstance to make it appear different. Any private group charter can require their club leader to be approved by the Pres. and the Pres. may or may not play along.
- phpisthebest 3y ago
  you may have an analogy if your "Any private group charter" was established by an act of Congress, where by the Appointment of the leader was required by law to be done by the president, with the advice and consent of congress Show me "Any private group charter" that was established by such an act of congress and i will agree with you.
  - landemva 3y ago
    Yes, Congress passed a bill 110 years ago to give a private group broad authorities. The third central bank of the USA.
- cyberax 3y ago
  The Fed is the only entity in existence that can _create_ dollars out of thin air. US Treasury is responsible for the printed paper dollars, but only the Fed can create "digital" ones.