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Interest rates are set by central banks, central banks are doing a form of central planning of the price of new money in other words controlling the interest ra

by acd 14y ago

Interest rates are set by central banks, central banks are doing a form of central planning of the price of new money in other words controlling the interest rate. As we know from history of the past central planning works pretty badly for optimal resource allocation. The American Federal reserve is a private institution, founded by members travelling on a secret journey from a train station in New Jersey to a private club on Jekyll Island. There the key elements of the Federal Reserve act was created. On board the train was senator Aldrich, the senators daughter was married to Rockefeller. There was also representatives from Rockefeller and Warburg / Rothschild banking dynasty family. The whole system, seem to be constructed to create as much debt as possible, which channels money upwards in the economic pyramid. See Edward Griffins book the creature from Jekyll island http://www.bigeye.com/griffin.htm http://www.bigeye.com/griffin.htm - The system is flawed

guelo 14y ago
Nice conspiracy theories, but have you noticed that every other country also has a central bank even though they didn't have Rockerfellers and Rothschilds? And when you look at the big picture our economy is extremely successful, the envy of the world.
- technotony 14y ago
  There is an important difference between the Federal Reserve and other central banks which is that the Federal Reserve is privately owned by the banks, whereas in other countries it's owned by the people. Ultimately then, the Federal Reserve is more incentivized to maintain the system than in other countries. One day this may be important.
  - tsiki 14y ago
    Except that the Federal Reserve isn't private, its Board of Governors is nominated by the Senate and the President and its dividents are capped at 6% a year. "Fed is private" is just some crap being pedalled by conspiracy theorists who either don't have the intellectual curiosity to do even cursory fact checking or intentionally spread it to further their agenda.
  - rskar 14y ago
    The public vs. private aspects of the Federal Reserve seem to be quite a muddle, per articles in Wikipedia: Federal Reserve System: "The Federal Reserve System's structure is composed of the presidentially appointed Board of Governors (or Federal Reserve Board), the Federal Open Market Committee (FOMC), twelve regional Federal Reserve Banks located in major cities throughout the nation, numerous privately owned U.S. member banks and various advisory councils." Federal Reserve Bank: "The Federal Reserve Banks have an intermediate legal status, with some features of private corporations and some features of public federal agencies. The United States has an interest in the Federal Reserve Banks as tax-exempt federally created instrumentalities whose profits belong to the federal government, but this interest is not proprietary. In Lewis v. United States, the United States Court of Appeals for the Ninth Circuit stated that: 'The Reserve Banks are not federal instrumentalities for purposes of the FTCA [the Federal Tort Claims Act], but are independent, privately owned and locally controlled corporations.' The opinion went on to say, however, that: 'The Reserve Banks have properly been held to be federal instrumentalities for some purposes.' Another relevant decision is Scott v. Federal Reserve Bank of Kansas City, in which the distinction is made between Federal Reserve Banks, which are federally created instrumentalities, and the Board of Governors, which is a federal agency."
- dpatru 14y ago
  The fact that every other country also has a central bank says to me that central banks are tremendously useful devices for governments to maintain power. Government really like the fact that they (and only they) can print unlimited amounts of money that people must accept. The US is so wealthy mainly because it's government has been printing money only relatively recently and with relative restraint. (We've only had the federal reserve for about a hundred years. And we've been completely off the gold standard for less than fifty.) This has enriched the private sector more than in other countries. Also, this has enabled the US dollar to be used as the reserve currency of the world. As US monetary policy becomes less disciplined, America will go the way of the other countries of the world, it's government will be enriched at the expense of the private sector and economic growth.

by acd 14y ago

guelo 14y ago

Nice conspiracy theories, but have you noticed that every other country also has a central bank even though they didn't have Rockerfellers and Rothschilds? And when you look at the big picture our economy is extremely successful, the envy of the world.

technotony 14y ago
There is an important difference between the Federal Reserve and other central banks which is that the Federal Reserve is privately owned by the banks, whereas in other countries it's owned by the people. Ultimately then, the Federal Reserve is more incentivized to maintain the system than in other countries. One day this may be important.
- tsiki 14y ago
  Except that the Federal Reserve isn't private, its Board of Governors is nominated by the Senate and the President and its dividents are capped at 6% a year. "Fed is private" is just some crap being pedalled by conspiracy theorists who either don't have the intellectual curiosity to do even cursory fact checking or intentionally spread it to further their agenda.
- rskar 14y ago
  The public vs. private aspects of the Federal Reserve seem to be quite a muddle, per articles in Wikipedia: Federal Reserve System: "The Federal Reserve System's structure is composed of the presidentially appointed Board of Governors (or Federal Reserve Board), the Federal Open Market Committee (FOMC), twelve regional Federal Reserve Banks located in major cities throughout the nation, numerous privately owned U.S. member banks and various advisory councils." Federal Reserve Bank: "The Federal Reserve Banks have an intermediate legal status, with some features of private corporations and some features of public federal agencies. The United States has an interest in the Federal Reserve Banks as tax-exempt federally created instrumentalities whose profits belong to the federal government, but this interest is not proprietary. In Lewis v. United States, the United States Court of Appeals for the Ninth Circuit stated that: 'The Reserve Banks are not federal instrumentalities for purposes of the FTCA [the Federal Tort Claims Act], but are independent, privately owned and locally controlled corporations.' The opinion went on to say, however, that: 'The Reserve Banks have properly been held to be federal instrumentalities for some purposes.' Another relevant decision is Scott v. Federal Reserve Bank of Kansas City, in which the distinction is made between Federal Reserve Banks, which are federally created instrumentalities, and the Board of Governors, which is a federal agency."
dpatru 14y ago
The fact that every other country also has a central bank says to me that central banks are tremendously useful devices for governments to maintain power. Government really like the fact that they (and only they) can print unlimited amounts of money that people must accept. The US is so wealthy mainly because it's government has been printing money only relatively recently and with relative restraint. (We've only had the federal reserve for about a hundred years. And we've been completely off the gold standard for less than fifty.) This has enriched the private sector more than in other countries. Also, this has enabled the US dollar to be used as the reserve currency of the world. As US monetary policy becomes less disciplined, America will go the way of the other countries of the world, it's government will be enriched at the expense of the private sector and economic growth.