How can a state-owned bank (the fed) have money owed to it by the state?
The federal reserve bank owns trillions worth of the U.S's debt, yet it is a wing of the U.S government...
- HobbitLv 79 years ago
The Federal Reserve is not "a bank." It is a network of 12 regional banks. The 12 regional banks are not owned by the Us government. Thy are owned by US banks and operated under the authority of the Federal Reserve Board. Together, they function as the central bank of the United States.
Also, there is a lot of misinformation out there about the Fed. ALL countries have a central bank of some kind that formulates and implements monetary policy. The notion of "abolishing the Federal Reserve system is simply nonsense. Someone hs to make and carry out monetary policy. That's what central banks do.
Finally: final authority is vested in Congress. Normally, the Fed operates as an independent agency. However, under the terms of the Federal Reserve Act over a century ago, Congress can step in at any time if it feels it is necessary.
- Alex NeroLv 79 years ago
The Federal Reserve is independent of the US Government.It tells the government what the interest rates are,it prints money as it sees fit,it causes recessions and depressions.All money collected by the IRS goes straight to pay the interest on the loan the Fed makes to the US government when it issues money.In effect---the Fed controls the government.Isn't that nice?
- SagebrushLv 79 years ago
"The Central Bank is an institution of the most deadly hostility existing against the principles and form of our Constitution. I am an enemy to all banks, discounting bills or notes for anything but coin. If the American people allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered."
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- Anonymous9 years ago
theres nothing federal about the federal reserve, there isnt even a reserve.