The Federal Reserve and the 4.6 Trillion used for bailouts.

[Kathryn]

LMAO! The Federal Reserve isn't part of the Federal Government, it's "Independent". It has virtually no oversight or auditting from Congress either.

Wow, misinformation abounds.

From the official Federal Reserve website:

What is the Federal Reserve System?

The Federal Reserve System, often referred to as the Federal Reserve or simply "the Fed," is the central bank of the United States. It was created by Congress to provide the nation with a safer, more flexible, and more stable monetary and financial system. Over the years, its role has evolved and expanded.

What are the Federal Reserve's responsibilities?

Today, the Federal Reserve's responsibilities fall into four general areas:

• conducting the nation's monetary policy by influencing money and credit conditions in the economy in pursuit of full employment and stable prices
• supervising and regulating banking institutions to ensure the safety and soundness of the nation's banking and financial system and to protect the credit rights of consumers
• maintaining the stability of the financial system and containing systemic risk that may arise in financial markets
• providing certain financial services to the U.S. government, to the public, to financial institutions, and to foreign official institutions, including playing a major role in operating the nation's payments systems

How is the Federal Reserve System structured?

The Federal Reserve System has a structure designed by Congress to give it a broad perspective on the economy and on economic activity in all parts of the nation. It is a federal system, composed basically of a central, governmental agency--the Board of Governors--in Washington, D.C., and twelve regional Federal Reserve Banks, located in major cities throughout the nation.

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."

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.

Any further questions about the "autonomy" of the Fed? Any more questions in your mind about who controls the activities of the Federal Reserve?

For more pesky facts, click here:
FRB: FAQs: Federal Reserve System

Like I've said before, when I have a question about a policy, system, organization, or entity, I prefer getting my information directly from the source.

 

[Troublemane]

While true the "Fed" is supposed to be part of the government, its really not. I think the book, "Creature from Jekyll Island" says it best, when the author says its a complete lie in its title... Federal Reserve System....Its not federally run, its privately controlled. It isn't a reserve of anything, the money they supposedly hold in reserve are fiat currency, created out of nothing. AND it isnt really a system of independent banks, its a single bank with multiple branches to give the illusion of autonomy.


---Also, I must agree Gene on another point, they don't "print" the money (the mint does that), but the Fed is the one who creates the money out of nothing, by being the lender to the Banks, and also the main provider of loans to the IMF (the world itself!!!) So, while I said they are the ones printing it, I meant really they are the ones creating the money out of nothing. the mint actually prints it, for the Fed.

Look at a dollar sometime. It does not say currency of the United States of America. It says "Federal Reserve Note", which congress has passed a law requiring people to accept as legal tender. Other than that law, it has absolutely no basis or value. Its barely worth the paper it is printed on.

 

[dust1n]

LMAO! The Federal Reserve isn't part of the Federal Government, it's "Independent". It has virtually no oversight or auditting from Congress either.

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.

I don't get it. You were trying to prove Paul wrong... you just reaffirmed the argument.

 

[Aquitaine]

Like I've said before, when I have a question about a policy, system, organization, or entity, I prefer getting my information directly from the source.

Oddly enough, same here ^_^

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.

Yeah, that's pretty much what I said. Alan Greenspan says the same thing:

[youtube]pVmxQsvj6lo[/youtube]
http://www.youtube.com/watch?v=pVmxQsvj6lo&feature=related

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,

LOL! Read that section again, Katheryn

However, the Federal Reserve is subject to oversight by Congress, which periodically reviews its activities and can alter its responsibilities by statute.

Pffft! If Congress can have full auditing power of the Fed then why does HR 1207 even exist? Also, did you not see this video:

[youtube]VilWVJOhlfM[/youtube]
http://www.youtube.com/watch?v=VilWVJOhlfM&feature=related

The fact that there's even an attempt to allow Congress to properly audit the Fed, leads me to believe it doesn't have proper oversight of it.

 

[Kathryn]

I don't get it. You were trying to prove Paul wrong... you just reaffirmed the argument.

I wasn't trying to prove Paul wrong. I was just clarifying the structure of the Federal Reserve - and how it coordinates and answers to Congress.

 

[dust1n]

I wasn't trying to prove Paul wrong. I was just clarifying the structure of the Federal Reserve - and how it coordinates and answers to Congress.

Wow, misinformation abounds.

What misinformation were you referring to?

 

[Aquitaine]

The Fed doesn't print money, though. The Treasury does, of which the Fed is not a subsidiary. For the Fed to process securities it needs to have the consent of the Treasury. The most the Fed can do is offer funds at discounted borrowing rates, which has to be repaid. Yeah, banks are virtually repaying themselves - but that's how the Fed system has worked for almost a hundred years now. It was crafted in such a way to make sure banks are self-interested in the Fed's success.

I'm just skeptical that the Fed Reserve has loaned out/sold $3.8 trillion in secrecy.

Hmmm, well it can get fairly complicated depending on the information given to the Public and the terminology used. From their own website:

Does the Federal Reserve produce bank notes and coins?

No, the Federal Reserve does not produce bank notes or coins. The Bureau of Engraving and Printing (BEP) produces currency and stamps, and the U.S. Mint produces our nation's coins. The Federal Reserve issues Federal Reserve notes and places them in circulation.

The Federal Reserve Act of 1913 authorized the production and circulation of Federal Reserve notes. Although printed by the Bureau of Engraving and Printing (BEP), these notes move into circulation through the Federal Reserve System. They are obligations of both the Federal Reserve System and the U.S. government.

So it appears that the Federal Reserve (or more specifically, the FOMC) actually decide monetary policy (for example say, to inflate the money supply) but the actual physical task of producing the Federal Reserve Notes lies in the BEP. The Mint also produce the coins. However, the vast majority of money is virtual anyways, so it does still leave quite a large amount of "power" in the Fed to play with money.

Oddly enough, in the first quote:
"No, the Federal Reserve does not produce bank notes or coins......The Federal Reserve issues Federal Reserve notes and places them in circulation."
If you asked an average American to show you a banknote, would he not show you this?

Honestly, with the Fed there is a lot more information which needs to be released for Public consumption because some parts of it simply don't add up.

 

[ericoh2]

Wow, misinformation abounds.

From the official Federal Reserve website:

What is the Federal Reserve System?

The Federal Reserve System, often referred to as the Federal Reserve or simply "the Fed," is the central bank of the United States. It was created by Congress to provide the nation with a safer, more flexible, and more stable monetary and financial system. Over the years, its role has evolved and expanded.

What are the Federal Reserve's responsibilities?

Today, the Federal Reserve's responsibilities fall into four general areas:

• conducting the nation's monetary policy by influencing money and credit conditions in the economy in pursuit of full employment and stable prices
• supervising and regulating banking institutions to ensure the safety and soundness of the nation's banking and financial system and to protect the credit rights of consumers
• maintaining the stability of the financial system and containing systemic risk that may arise in financial markets
• providing certain financial services to the U.S. government, to the public, to financial institutions, and to foreign official institutions, including playing a major role in operating the nation's payments systems

How is the Federal Reserve System structured?

The Federal Reserve System has a structure designed by Congress to give it a broad perspective on the economy and on economic activity in all parts of the nation. It is a federal system, composed basically of a central, governmental agency--the Board of Governors--in Washington, D.C., and twelve regional Federal Reserve Banks, located in major cities throughout the nation.

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."

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.

Any further questions about the "autonomy" of the Fed? Any more questions in your mind about who controls the activities of the Federal Reserve?

For more pesky facts, click here:
FRB: FAQs: Federal Reserve System

Like I've said before, when I have a question about a policy, system, organization, or entity, I prefer getting my information directly from the source.

I highly recommend doing some research into the history of the Fed. I think it's one of the most corrupt and misunderstood (by the masses) systems ever devised. As someone stated earlier "The Creature from Jekyll Island" would be a good place to start. This video is a little long but it is worth watching and is very informative concerning the true nature of the Federal Reserve.

The Money Masters - How International Bankers Gained Control of America

 

[Kathryn]

What misinformation were you referring to?

The gyst of many of the posts up to that point gave the impression that the Fed works independently from, and does not answer to, Congress. I wanted to clarify that though it is a separate entity (of course), Congress has MUCH influence, and jurisdiction over, the Fed's actions and policies.

I agree with much of the sentiment expressed here - the Federal Reserve is certainly as corrupt as any other huge bureaucratic entity controlled by a centralized government.

 

[Just_me_Mike]

The gyst of many of the posts up to that point gave the impression that the Fed works independently from, and does not answer to, Congress. I wanted to clarify that though it is a separate entity (of course), Congress has MUCH influence, and jurisdiction over, the Fed's actions and policies.

I agree with much of the sentiment expressed here - the Federal Reserve is certainly as corrupt as any other huge bureaucratic entity controlled by a centralized government.

Kathryn, we are not in highschool anymore. The text books need to be closed, and quoting from the Fed website is akin to asking a rapist if he committed the crime.

Try some independent research on this one. There is plenty of smoke in front of this truth.

Good luck...

 

[Aquitaine]

The gyst of many of the posts up to that point gave the impression that the Fed works independently from, and does not answer to, Congress.

Hmmm, well the Fed certainly has plenty of room for improvement when it comes to it's relations with Congress. Let's not forget that the Board of Governers serve upto 14 years in office and each term is staggered for every two years, meaning one President can only nominate upto 2 candidates for the board. Then there are the remaining 5 members, along the rest of the FOMC (the real driving force of the Fed), which arn't nominated by the Federal Government at all.

Congress granted the Federal Reserve's power in the 1913 Federal Reserve Act, it's nearly a century old and it appears that there are some member of congress who're clearly concerned about the Fed and it's lack of transparency. If Congress had much influence over it then they wouldn't be trying to push a bill that would allow them to properly audit the Fed - they'd already be able to do that, right?

I agree with much of the sentiment expressed here - the Federal Reserve is certainly as corrupt as any other huge bureaucratic entity controlled by a centralized government.

Out of curiosty which branch of the Federal Government is it a part of?

I wanted to clarify that though it is a separate entity (of course), Congress has MUCH influence, and jurisdiction over, the Fed's actions and policies

Again, from their own webiste:

"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."


Correct me if I'm wrong, but isn't the Legislative Branch...... Congress?

 

[dust1n]

It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.

Henry Ford