Cameron asked in Politics & GovernmentPolitics · 9 years ago

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...

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  • Romeo
    Lv 7
    9 years ago
    Favorite Answer

    The Federal Reserve is privately owned, not state owned. Write your congressman and voice you opinion about it.

    Here is a concerned citizen

    http://www.youtube.com/watch?v=x4gPPdlisMQ

    Youtube thumbnail

  • Hobbit
    Lv 7
    9 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.

  • 9 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?

  • 9 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."

    --Thomas Jefferson

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  • Anonymous
    9 years ago

    theres nothing federal about the federal reserve, there isnt even a reserve.

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