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>>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 te

>>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.
  - mattclarkdotnet 3y ago
    This is a huge but common misunderstanding. Every time a bank makes a loan, the dollars are "created out of thin air", and slowly "destroyed" as the loan is repaid.
    - wavemode 3y ago
      When a private bank makes a loan, the dollars are not created out of thin air, no. They loan out depositor's cash.
      - pwg 3y ago
        That is not how things work in the US with banks and loans, they (banks) do actually create "money out of thin air" when they make loans: https://www.investopedia.com/articles/investing/022416/why-banks-dont-need-your-money-make-loans.asp https://www.investopedia.com/articles/investing/022416/why-b... Read the section under the heading: "How Banks Make Loans in the Real World".
        subsistence234 3y ago
        creating money in the sense of lending on margin is very different from the sense in which the Fed creates money.
    - cyberax 3y ago
      That's incorrect. A bank can't give out more dollars than they receive from depositors. It can give out all kinds of paper that is _valued_ in dollars, but not the digital representation of banknotes with the pictures of dead presidents on the front. In contrast, the Fed can create actual dollars. It can just buy an asset and pay for it with money that it has just created.

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.
- mattclarkdotnet 3y ago
  This is a huge but common misunderstanding. Every time a bank makes a loan, the dollars are "created out of thin air", and slowly "destroyed" as the loan is repaid.
  - wavemode 3y ago
    When a private bank makes a loan, the dollars are not created out of thin air, no. They loan out depositor's cash.
    - pwg 3y ago
      That is not how things work in the US with banks and loans, they (banks) do actually create "money out of thin air" when they make loans: https://www.investopedia.com/articles/investing/022416/why-banks-dont-need-your-money-make-loans.asp https://www.investopedia.com/articles/investing/022416/why-b... Read the section under the heading: "How Banks Make Loans in the Real World".
      - subsistence234 3y ago
        creating money in the sense of lending on margin is very different from the sense in which the Fed creates money.
  - cyberax 3y ago
    That's incorrect. A bank can't give out more dollars than they receive from depositors. It can give out all kinds of paper that is _valued_ in dollars, but not the digital representation of banknotes with the pictures of dead presidents on the front. In contrast, the Fed can create actual dollars. It can just buy an asset and pay for it with money that it has just created.