Did you know that the Federal Reserve is not part of the federal gov't and is privately owned?

Question

Many Americans today wrongfully believe that the Federal Reserve is somehow part of the federal government, possibly even the Treasury Department. Many do not know that the Federal Reserve is actually a cartel of private banks that was given the power to be the sole issuer of U.S. money, with full control over its quantity and thus its value. Since this group of private bankers (the Fed) provides credit to the U.S. government when we spend money we don’t have, the Fed also is able to profit handsomely from the ever-increasing national debt. Because the Fed makes more money when the country goes deeper into debt, there is no incentive for the Fed to support any reductions in federal deficit spending. The more credit we need, the more money this cartel of private banks will make.

Answer 1

Yes it a downplayed fact in US history our money is backed by nothing. Its no more than just paper and promises. i have studied this its a giant scam read about the North American Union and the phasing out of the dollar or destruction there of someday we will be trading the dollar in for a new form of currency/ debt look into zeitgeist.

Answer 2

I think you're going to need to list a few references. Where did you get this information?

EDIT.

First off... The Federal Reserve DOES NOT print any money.

U.S. Currency is printed by the Bureau of Engraving and Printing ( http://www.bep.treas.gov/ ).  The BEP is part of the  United States Department of Treasury, and not only do they print U.S. Currency, but they also produces several other security documents such as portions of U.S. passports, materials for Homeland Security, military identification cards, and Immigration and Naturalization Certificates.

U.S. coinage is struck by The United States Mint, which is also part of the United States Department of Treasury.

The BEP and the U.S. Mint are responsible for distributing U.S. paper money and coins to the Federal Reserve banks and branches.

The Federal Reserve was created on December 23, 1913, with the signing of the Federal Reserve Act by President Woodrow Wilson. The act had been drafted as House Resolution 7837 by Representative Carter Glass (D-VA), incoming chairman of the House Banking and Currency Committee.

Who owns the Federal Reserve?

The Federal Reserve System is not "owned" by anyone and is not a private, profit-making institution. Instead, it is an independent entity within the government, having both public purposes and private aspects.

As the nation's central bank, the Federal Reserve derives its authority from the U.S. Congress. It is considered an independent central bank because its decisions do not have to be ratified by the President or anyone else in the executive or legislative branch of government, it does not receive funding appropriated by Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms. However, the Federal Reserve is subject to oversight by Congress, which periodically reviews its activities and can alter its responsibilities by statute. Also, the Federal Reserve must work within the framework of the overall objectives of economic and financial policy established by the government. Therefore, the Federal Reserve can be more accurately described as "independent within the government."

The twelve regional Federal Reserve Banks, which were established by Congress as the operating arms of the nation's central banking system, are organized much like private corporations--possibly leading to some confusion about "ownership." For example, the Reserve Banks issue shares of stock to member banks. 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. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year.

Why did Congress want the Federal Reserve to be relatively independent?

The intent of Congress in shaping the Federal Reserve Act was to keep politics out of monetary policy. The System is independent of other branches and agencies of government. It is self-financed and therefore is not subject to the congressional budgetary process.

Since the Federal Reserve has considerable discretion in carrying out its responsibilities, to whom is it accountable?

The Federal Reserve's ultimate accountability is to Congress, which at any time can amend the Federal Reserve Act. Legislation requires that the Fed report annually on its activities to the Speaker of the House of Representatives, and twice annually on its plans for monetary policy to the banking committees of Congress. Fed officials also testify before Congress when requested.

To ensure financial accountability, the financial statements of the Federal Reserve Banks and the Board of Governors are audited annually by an independent outside auditor. In addition, the Government Accountability Office, as well as the Board's Office of Inspector General, can audit Federal Reserve activities.

EDIT AGAIN.

I did do a search for "Federal Reserve is Privately Owned" and all of those sites are sites that anyone two year old toddler could make with a little background in computers, so they are hardly a reliable source of information.  They remind me of Government Conspericy websites.

Google searching is hardly research and can hardly be held as fact.

Answer 3

You are only partially correct.  It is the Regional Federal Reserve Banks which are owned by the private banks, not the Federal Reserve as a whole.  The Fed (national) is a part of the Treasury Department.  Also, the Fed does not issue money - that job is performed by the U.S. Mint, another portion of the Treasury under the direction of the Sec. Treas.

Credit to the Federal Gov. is provided mainly by the Treasury through the issuance of T-Bills which are under the control Bureau of Public Debt, also a part of the Treasury.  The Fed provides credit to banks in order to keep them liquid.  In order to avoid conflicts of interest, only 3 of the 9 Directors of each regional Fed comes from the banking sector, thus the banks have less than a majority say in policy.  To further put a wall between the Fed and the banks, the Regional Chairman comes from the board and can neither be a member/employee of a bank nor a stockholder of any bank.

Lastly, government debt is set by Congress not by the Fed.  It is up to Congress to raise the national debt ceiling and if they do not raise the ceiling, the government debt cannot increase.  Thus, the Fed has no hand in the national debt (short of possibly testifying in front of Congress).