Why is the federal reserves in charge of the US monatery system?

Question

does the US really need this people, to me they are not a federal reserve, they are as federal, as to Federal Express, the mail system. i wold like to see the end of the reserve, but first, where ca i find info on who they and what do they really do, why do they control the us monetary system?

Answer 1

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.

For confirmation on this, check out how Hoovers classifies them:

http://www.hoovers.com/free/search/simpl...

also see:

http://www.geocities.com/CapitolHill/Emb...

http://www.publiceye.org/conspire/flaher...

http://famguardian.org/Subjects/MoneyBan...

http://webskeptic.wikidot.com/federal-re...

To understand the why, what, and who behind the Federal Reserve system, one must look at the history of banking and currency.

Prior to 1913, the government had very little direct influence over the nations banks.  There were frequent boom/bust cycles. One significant turning point  was the Panic of 1893 which led to one of the worst recessions (up to that point) in history. There was no central bank and the Treasury had to go hat-in-hand to J.P. Morgan for help. It was unsettling for all.

Then came the Panic of 1907. Again the government was relatively impotent to act quickly. J.P. Morgan and other bankers met to address it. Regardless of their true motices,  the Panic was relatively mild because of the quick action. This did lay the seeds for creating a central bank charged with keeping the system strong.

The original Aldrich plan endorsed by the big bankers of the time called for a 100% private system. This was backed by the Republicans but opposed by the Democrats. This version was defeated. When WIlson took office, a compromise bill was drawn up that called for member-owned-and-controlled branch banks, overseen by the (then called) Board of Directors, a government agency headed by the Secretary of the Treasury. This bill passed in 1913.

However, by mid-1920's, flaws in this arrangement were becoming apparent. There was very little coordination of monetary policy. The branches also resented interference by the Board of Director and dragged their feet on recommended actions. In addition, the  Fed branches showed surprisingly little concern over smaller banks that failed in their regions.

The lack of this coordinated effort became critical with the onset of the Great Depression. Criticisms that the FRS caused the Great Depression may or may not have been exaggerated. However, the inability for the branches to work together prodded congress to take action.

the Bank Act of 1935 represented a major change in FRS structure. All monetary policy power was consolidated with the Board of Governors. The branches were regulated to day-to-day activities.

- Do we need the Federal Reserve? Of course not though a central bank does provide some important benefits.

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.

So we really don't need a Federal Reserve if you prefer what the historical record has shown us.

Educational Reference Links:

The Federal Reserve - Board of Governors site - http://www.federalreserve.gov/

A Federal Reserve site for educators - http://www.federalreserveeducation.org

Federal Reserve publications - http://www.federalreserve.gov/publicatio...

Wikipedia - http://en.wikipedia.org/wiki/Federal_Res...

Map of the branch locations - http://www.federalreserveonline.org/

FAQs - http://www.federalreserve.gov/faq.htm

Index to Federal Reserve sources - http://www.federalreserve.gov/general.ht...

FAQs (Richmond) - http://www.richmondfed.org/faqs/index.cf...

How the Fed works - http://money.howstuffworks.com/fed.htm

What is the Federal Reserve - http://www.thisnation.com/question/033.h...

FRS reports to congress - http://www.federalreserve.gov/boarddocs/...

Answer 2

They are there because every powerful enough officail that gets high enough to stop it.  They shoot them and then cover it up.  Alexander Hamilton had 3 attempts on his life getting rid of the first central bank the "National Bank" Next Lincoln and then finally third JFK.

Answer 3

Because the Congress betrayed their oath to support and defend the Constitution and sold out the American people.  This was in 1913.  It's been all down hill from there.

In that same year, they passed the 16th Amendment, which changes the Constitution.  The Founders wrote the Constitution to PROHIBIT ANY DIRECT TAX ON THE AMERICAN PEOPLE.  An income tax was necessary to pay the interest to the Federal Reserve stockholders for creating debt notes for us to use as money.

Also in 1913, Congress changed the Constitution to provide for the direct election of senators.  Prior to this, senators were elected by state legislators, one more of the checks and balances the Founders gave us.

The Constitution mandates Congress with coining money.  It does not give Congress the authority to create a central bank, which prints inflationary debt notes.  The Constitution also states that no state can use anything other than gold and silver as legal tender.  This means that Congress must coin money out of gold and silver.  So even a hundred years ago, the Congress was corrupt.  It has only gotten worse!

No, we don't need a Federal Reserve.  Without a Federal Reserve, and with gold and silver, we would have NO inflation.  We would need NO income tax.  And our politicians would not be able to raise revenue by inflating the currency, along with their creature, the Federal Reserve.

We need to expose this criminal arrangement.  When enough Americans realize how they have been swindled by their own politicians, and the big banks, the Federal Reserve will be abolished.  

Remember, you are not being swindled by your government, you are being victimized by criminal politicians who have lied their way into office, and betrayed the American people.  When they do these things, they are no longer agents of the government.  They are just criminals.

Answer 4

good question!

The Federal Reserve Bank is privately owned so it's a highly dangerous situation for the US monetary system.

these are the banks involved:

http://www.realjewnews.com/?p=177

http://www.apfn.org/Mind_Control/money/m...

http://www.federal-reserve.net/

http://www.the7thfire.com/Politics%20and...

JFK gave a speech about this secret society:

http://www.youtube.com/watch?v=3ngJNIk8e...

he attempted to get rid of the power of the Fed Reserve Bankers:

http://en.wikipedia.org/wiki/Executive_o...

http://www.wakeupfromyourslumber.com/nod...

Eisenhower warned JFK about the secret society:

http://www.youtube.com/watch?v=rd8wwMFmC...

**************************************...

we can't afford to take our eyes off this NWO society - "the Industrial & Military Machinery of Defence" who make money out of war.

we need to BE AWARE this secret society exists:

http://video.google.com/videoplay?docid=...

because they are changing our lives...

http://dprogram.wordpress.com/2008/05/21...

Answer 5

This explains it quite well.

http://www.youtube.com/watch?v=evY05RxZt...

http://www.youtube.com/watch?v=A0xOZfpcB...

http://www.youtube.com/watch?v=ii-TjxDYo...

Have fun ;-))

Some may tell you that the words of Mr Wilson did not talk about the Fed Res. but they never explain what they think he is talking about!

Answer 6

Congress (and nobody else) created the Federal Reserve System to regulate the value of US currency, as provided in Article 1 section 8 of the constitution. This happened after five years of open and public debate about how to avoid situations where one financial institution wrecks the whole national economy.

Occasionally financial institutions (even properly managed ones) do not have enough cash to cover their transactions on a particular day. Financial managers plan ahead, but they can't predict everything.

Without the Federal Reserve, or something like it, these institutions would have to sell off assets to raise cash. In a normal sale, you can wait for a good price. In this case, the institution would have to take a very low price so it can get the cash quickly. This is known as a "fire sale," and it distorts value.

Meanwhile, other financial institutions are waiting for this institution to pay them the money it gets from the fire sale. If they also run out of cash, then you have more fire sales and more value distortion.

The Federal Reserve lends cash to financial institutions so that they don't have to hold fire sales. That doesn't mean that the financial institution is off the hook. It just means that there is time for people to talk, think, and choose the best option.

Answer 7

funny i was JUST reading this article

u may find it useful in ur search for knowledge on this subject

=)

http://www.the-tribulation-network.com/d...

Answer 8

Iraqisax above me said it best. It is criminal. Why does any crime happen?  Often GREED!

Gotta luv some of these other posters who use fed sites as sources for their answers. LMAO. Isn't that kinda like the fox guarding the henhouse?

Man I just don't get it why some peeps seem to hang around the internet trolling for chances to jump in and defend their loving and benevolent federal reserve. Who in their right mind defends the fed especially these days with all that has transpired recently? Knowing what the fed has done to this country for the past 100 years you couldn't pay me enough for a job like that. Heck, I'd stoop to being editor of a junk Science rag mag like like Popular Mechanics before spending a single second defending the fed.