Why does the U.S. have a Central bank? One that is privately owned? Is the Federal Reserve system hurting us?

Question

Why does the U.S. have a Central bank? One that is privately owned? Is the Federal Reserve system hurting us?

Answer 1

We need an honest money system with intrinsic value.  We now have a fiat money system based on created out of nothing.  This country survived without a central bank for most of its first 140 years.  The prices remained pretty stable, government remained small in unobtrusive, debt was low, ownership of land was high, income tax was not constitutional and we stayed out of large conflicts between European countries.  Some say we have no more so called boom and bust cycles.  Ya right.  Right after the Fed was in place we entered a major war (need for lots of money, wonder if they made money off that exchange) and then a MAJOR depression for over a DECADE, then another major WAR then a BOOM, another WAR, Another War and then several boom and busts.  One thing that has been ever present since 1913 is high inflation.  This is why government likes a central bank, they get the money first.  This inflation has and is destroying our future.  The worth of our properties is being eaten away.  Another thing this system is destroying us with is debt, both public and private.  We are a country enslaved to this debt which was small before 1913.  Why this would be a result of the Fed is they survive on this debt.  Lastly the Federal Reserve Bank is NOT FEDERAL (has Stock Holders for Goodness sake), has NO RESERVE, and in not a BANK.  The name was smoke and mirrors to sell it to the American people.  This bank makes money out of thin air, creates it from nothing but will take your house (something of intrinsic value) if you don't pay it back.  This money system is immoral.

Answer 2

===> Why does the U.S. have a Central bank?  Is the Federal Reserve system hurting us?

--- Practically every industrilized nation has a central bank. To understand why, one only needs to look at history.

Without a publicly owned central bank:

-There would be no national coordinated monetary policy. Each bank would expand or contract credit based on their immediate business needs, not the natons requirements.

- Smaller banks would be dependent on larger banks for credit extensions, currency, etc. History has shown that larger banks often consider smaller banks as competition and didn't care if they failed. (After 1935, the Fed was charged with looking after the overall health of the system)

- Before 1905, there was over 30,000 different currencies in circulation.

- In international monetary matters, the nations largest private banks would represent America

- There would be no elasticity to the currency. You would see more cycles of inflation/deflation, and boom/bust as we saw in the 1800s

- Banks would return to being audited soley by themselves in their shareholders interest. (After 1935, the Fed was charged with being the nations bank auditors to serve depositers interest as well.)

- Clearing of checks would go back to private clearinghouses often run by large banks. Without an impartial clearinghouse, decisions in the process would sway toward the private interests that control it.

===> One that is privately owned?

--- The Federal Reserve System is not privately owned but there is elements of private ownership and control at the branch level.

To review:

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), and branches beneath them that resemble corporations. (http://www.federalreserveeducation.org/f... )

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. 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, however, are organized to involve member banks in the day-to-day operation.  Member banks are required to buy shares in their branch. Each bank has one vote. The shares get a standard 6% dividend. They can vote for 6 of their 9 board members.  All 'profit' from the Federal Reserve branches are turned over to the Treasury at the end of the year.

Answer 3

The Federal Reserve has served this nation very well.

Answer 4

Not just yes but H--ll yes...It was hi-jacked in l913 by a group looking to control the monetary system of this country---this happened starting with a secret meeting at Jekyl Island---for its history read--The Creature From Jekyl Island---by G. Edward Griffin...The present inflation and boom and bust cycles are the result of the present system.

Answer 5

So a few elitist can control and collapse this country at there whim. Its hurting us more than anything else.

Answer 6

Some of the functions of the U.S. Central Bank are: Burn old bills, set margin ratios, charter banks and regulate them, huge check clearinghouse, lender of last resort, order currency to be printed, be the U.S. government's bank. The Federal resevre is not private, nor is it government..it is quasi-private; quasi-public. Is it hurting us...done pretty good since 1913...in my opinion (The Republic has survived ;)

Answer 7

An private organization with ulterior motive to control the lives of everyone.

Look for the movie Zeitgeist.

http://www.zeitgeistmovie.com/