Federal Reserve System, private or government entity?
So, I know that many of us in the Liberty Movement consider the Federal Reserve System to be one of the main issues in preventing true freedom from ever existing in the US. We often say, and hear people like Dr. Paul say that the Federal Reserve is a privately owned entity and can do whatever they want. Well, surprisingly, in reading America's Great Depression by Murray Rothbard, I came across footnote 30, which really threw me for a loop. I wanted to share this with you guys and get your opinions. Why do you think Ron Paul, who recommends this particular book, always talks about the Fed being privately owned when in reality it can't really do what it's doing without the federal government giving the go ahead?
Here is the quote:
30 "Some writers make a great to-do over the legal fiction that the Federal Reserve System is “owned” by its member banks. In practice, this simply means that these banks are taxed to help pay for the support of the Federal Reserve. If the private banks really “own” the Fed, then how can its officials be appointed by the government, and the “owners” compelled to “own” the Federal Reserve Board by force of government statute? The Federal Reserve Banks should simply be regarded as governmental agencies."
Again,
the Board of Governors of the Federal Reserve banks is a government institution. The member banks of the Federal Reserve system are private corporations.
The problem has little to do with if the Federal Reserve is private or public; it has everything to do with the fact that the Federal Reserve has monopoly control of the money supply and that the institution inflicts fractional (now fictional) reserve lending practices on the people and the government of the Republic.
End the Fed, restore the Republic.
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"the only thing that keeps the banking system from failing is general ignorance about how the banking system works."
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If it is a government agency,
why would the government take loans at interest from itself?
Brad
Government cant do anything right
Why would they CREATE an institution whereby it has to take loans at interest from itself. The Fed was not created by an entrepreneur in the marketplace. Having a Fed is in the best interests of the gov't or else they wouldn't have created it. Your comment makes me believe that you think gov't decisions are intelligent ones haha. You know that isn't the case.
"Greater than the force of mighty armies is the power of an idea whose time has come"
- Victor Hugo
Fed reserve profit
The fed must make a tremendous profit. Were is this reported and were does it go? I think that if it was a government agency, the federal government would not be paying itself interest?
So long story short, it's
So long story short, it's private, but quasi government, yet if HR1207 passes the GAO will be able to conduct a full audit? Interesting thread.
“Liberty means responsibility. That is why most men dread it.” -George Bernard Shaw
Not necessarily ...
If HR1207 is passed, because the FED is private they can ignore the legislation or litigate the validity of the statute. That would be quite interesting, the courts could deem it a public institution or give it the protection that a private organization deserves. That would be interesting.
However, that would be potentially catastrophic for the FED. The U.S. could threaten to do their banking elsewhere.
Be careful who you go to bed with.
WAHOR!!
http://www.dailypaul.com/node/48994
WAHOR!!
http://www.dailypaul.com/node/48994
Ooww
I gotta disease!
It really makes no difference but ...
it is private. They do not get their pay checks from the federal government. It was created prior to the U.S. government agreeing to solely do business with them. And if the U.S. government decided to go elsewhere to do its banking, it could still exist. (It would be difficult to, but it could).
You can't say that about the NSA, the CIA, the FBI or any other governmental organization.
WAHOR!!
http://www.dailypaul.com/node/48994
WAHOR!!
http://www.dailypaul.com/node/48994
KISS
Who do they get thier paycheck from?
False dichotomy?
I don't mean to imply that the dichotomy is inherently or universally false, but only so as it relates to the Fed. That's really the point. Thus, to me it seems important to realize that the crucial quality of the Federal Reserve is that it effaces that distinction between private and public. In that sense, it is quintessentially fascist. Really, in terms of its both mission and operation, it tends to blur the line. Its purpose is to intervene in the economy for the benefit of private interests, but it draws upon its governmentally granted powers to do so. I think a good example of its inherently "private-public" nature is the fact that the governors of the regional banks are selected by the private, member banks, while the president selects the Chairman.
Well said.
and well put.
A free market will never exist as long as there is monopoly control over the money supply.
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"the only thing that keeps the banking system from failing is general ignorance about how the banking system works."
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Guess you've already seen this..
http://www.save-a-patriot.org/files/view/frcourt.html
Blackwater, private or government entity?
Does it matter whether government hires employees themselves to carry out their plunder and control, or whether they subcontract.
What matters is that the Federal Reserve bank provides the reserves to the banking system in order for private banks to then create money out of thin air and loan it into existence. Plus the Federal Reserve interferes in the free markets otherwise by manipulating interest rates.
You are screwed by them whether or not they are private or public.
"The deepest sin against the human mind is to believe things without evidence." Thomas H. Huxley
There is a difference
There is a difference .Government owned notes do not have interest added to the national debt.The Fed collects interest & charges a fee if they actually print notes..Lots of overhead..LOST to the citizens..You pay interest on the nat'l debt & interest on the interest when you use credit or take a loan..
you-no
You would still have to pay interest for loans
from private banks if there were no Fed. These banks have to pay interest to the Fed as well if they borrow from them...it's not as if they get free money.
AS an individual yes, but
AS an individual yes, but the nat'l debt would not incure interest..
you-no
THE FED RES IS privatly
THE FED RES IS privatly owned ..GOV owned would not pay interest on the funds it creates...you-no
You're wrong
Federal Express is private, it was not created by government, its employees are not chosen by politicos and it is not given a government monopoly. The federal reserve has all of the above. It is government, it is a tool of congress that was created by congress. It is NOT an outgrowth of a free marketplace.
"Greater than the force of mighty armies is the power of an idea whose time has come"
- Victor Hugo
Dr. Paul does NOT say the Fed is privately owned.
He calls it "a cabal of elite, quasi-governmental banks." http://www.ronpaul.com/2009-05-18/ron-paul-what-has-been-hap...
He also calls it "the fourth branch of government."
It's many of his FOLLOWERS that say it is private, like so many things they say that contradict what Dr. Paul himself says.
ELITE rich people or govts
ELITE rich people or govts it doesn 't matter...WE no longer use our own currency to fund the nat'l debt..Dolar bills ARE MEARLY credit notes that can only be redeamed at the private FED RES..Because the funds have no backing or actual value except to the FED RES..
you-no
He has said it before ,, many many times ..
On TELEVISION...
He has called it all of these things. It IS privately owned by Global Bankers.
No one is contradicting what Dr. Paul said. He has said this.
I doubt that.
Maybe you're confusing him with Dennis Kucinich.
My bad, I could have sworn I
My bad, I could have sworn I heard him say it before.
“Liberty means responsibility. That is why most men dread it.” -George Bernard Shaw
If you think about it, the last thing he would want to do
is to claim it is private because HR 1207 succeeding depends on it not being private. Congress would not have the authority to audit a private business. It would be like a bill to audit McDonalds. It's that it's part of the government or at least "quasi-government" that justifies government intrusion into it.
I think you are wrong on
I think you are wrong on that point ..Because the FED RES is operating within American jurisdiction, the US government has all the right it subjects any operating business to...you-no
The government audits private persons and institutions
all the time. Indeed, it generally tends towards the effacement of the very distinction. It's actions all operation on the assumption that there is no truly private property, but only property that, by virtue of the government's restraint, is allowed to remain substantially private.