Describe the nature of the Federal Reserve Board being an independent entity? What are the ramifications?

Question

Describe the nature of the Federal Reserve Board being an independent entity? What are the ramifications?

Answer 1

Its not independent. The Federal Reserve is not a government agency. Nor is it a private bank. Its both. It is a banking cartel. It is owned by the major large banks such as J.P. Morgan, Chase, and several other banks. These banks all own shares in the Federal Reserve system but no shareholder is more powerful then the other. The govrnment authorizes the Federal Reserve to operate as a cartel for the purpose of imposing the largest tax on the american people, inflation. The Fed was created to bail out the banks and be the lender as last resort. What we are seeing the Fed doing today by bailing out the banks and private lending companies not tied to the banking system and placing that burden of risk on the taxpayer is exactly why it was created. The bankers association created the FED to remove the risk of the rich bankers and lenders from loosing their money and assets. The Fed loans money to the federal government in the form of bonds.

There is alot of history to the FED but you must first understand the it is in no way owned or operated by the federal government.

http://video.google.com/videosearch?q=FI...

Answer 2

The Federal Reserve System is a congressionally-chartered agency like the USPS and NASA. It is organized with a 100% government agency at the top (the Board of Governors), branches beneath them that are organized like corporations with member banks as shareholders.(Ref: http://www.federalreserveeducation.org/f... , http://www.federalreserve.gov/generalinf... )

The Board of Governors are all appointed for 14-year terms by the president and confirmed by congress. It operates per it's charter and laws set by congress. it is overseen by congress. There is no structure or mechanism for private ownership at this level; it is a government agency. You can confirm this from a number of government sites that list it as a government agency (e.g. http://www.whitehouse.gov/government/ind... Board members are forbidden by law to have any economic interest in a private bank. (Ref: Title 12 chapter 3 of the U.S. Legal Code). The Board determines monetary policy and provides high level oversight of the branches.

The 12 branches can be considered highly regulated private corporations. Member banks are required to buy shares in their branch. Each bank has one vote.  They can vote for 6 of their 9 board members, the other 3 are appointed by the Board of Governors.  Though the branches are called non-profit, the member banks get a standard 6% dividend on their shares. The remaining 'profit' is turned over to the Treasury at the end of the year.

The 14-year terms of the Governors was intended to span presendential terms.

Though considered independent within the government , the Fed is still susceptable to political pressure. When Congress has a concern, they call the Fed chairman to the hill to 'discuss'. If Congress isn't satisfied, they may pass a law or two to make the Fed pay attention, or simply ensure the next appointee 'understands' Congressional wishes.

The most obvious and transparent example was Greenspan's endorsement of Bush tax cuts. The Republican Congress put a lot of pressure to get that. In Greenspan's book, that's one of his biggest regrets is endorsing the cuts that brought record deficits to the economy,

Answer 3

The FRB is independent in the same way that judges are independent. Presidents appoint members of the board to 14-year terms, but they have no authority to walk into a board meeting and say, "Do this."

The ramifications are that the FRB can make its decisions based on the current economic situation, instead of doing what is convenient for the current president's re-election campaign. It also means that presidents will appoint people based, at least to some degree, on the public interest.

Answer 4

The Federal Reserve (which has nothing to do with the Federal Government - association of private banks) Created in 1913 by the enactment of the Federal Reserve Act, it is a quasi-public - numerous private U.S. member banks, which subscribe to required amounts of non-transferable stock in their regional Federal Reserve Banks

The Federal Reserve is walking a thin line on the edge of a knife.  This financial crisis was manufactured, and it following its' course.  Many will fall by the financial wayside.  Funny thing though after opossing a Central Banking System throughout the History of the US - founding fathers - the Federal Reserve was created to "Prevent Financial hills, and valleys".  Makes you question who is driving the boat.

Answer 5

They are mafia goons, dressed like bankers. End the fed!