? asked in Politics & GovernmentGovernment · 7 years ago

How Are People Okay With The Federal Reserve!?

This privately owned organization controls the amount of currency available to our government and had the ability to cause depressions and fund wars. Wasn't the supply of currency supposed to be controlled by Congress????? How aren't people outraged by this, and those who own the federal reserve and create fiat currency are able to charge interest paid by the taxpayer. Are people ignorant or just not care??

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  • ?
    Lv 7
    7 years ago
    Favorite Answer

    Because they understand that the real picture is not as you've painted it.

    "Wasn't the supply of currency supposed to be controlled by Congress?" Yes, and they've used their authority under the "necessary and proper" clause in Article 1 to delegate that to people who know about economics-a move which was declared constitutional in 1819's McCulloch v. Maryland. You might be interested to know that law in question was signed by James Madison--as in "Father of the Constitution" James Madison.

    Given that there were six depressions pre-fed (1819, 1837, 1857, 1873, 1893 and 1907) and only one since then (1929), I'd say they've done a pretty good job. Not perfect, but better than what we had.

    "those who own the federal reserve and create fiat currency are able to charge interest paid by the taxpayer"

    Since the Fed was created by Congress, that essentially makes us the owners. If you think it's "private", try and come up with one other private company that is a) created by Congress, b) has it's board nominated by the President, and c) has board members confirmed by the Senate.

    Go ahead--just one other company.

    Also, by law, 94% of the interest that the Fed earns on securities (which it must buy on the open market at the going rate) is returned to the Treasury, with the other 6% going to pay operating expenses. Right now, that means the Fed earns something like 0.2%--a truely craptacular rate. You'll get twice that by putting your money in a simple savings account.

    And FRNs aren't the only "fiat money" the US has had. United States Notes (also called "legal tender" notes or "greenbacks") were also fiat money, backed by the sale of government securities. The difference is that 94% of the interest _didn't_ get returned to the Treasury.

    So it's more complex than the "end the Fed" sites claim. Not surprisingly, because the whole picture tells a very different story.

    Edit for Johnny: People keep saying "it's private", but can never seem to come up with even one other "private" company created by Congress, with it's board nominated by the president and confirmed by the Senate. Odd-if it really was "private", you'd think there would be other examples.

    The structure of the Fed is set out in the law, and it specifically forbids foreign banks from membership. I know that's not as sexy as an "evil conspiracy of bankers", but it's the truth.

    Also, Kennedy never tried to "disolve the fed"--in fact, he worked to stregthen it. Unfortunately, the conspiracy loons aren't above lying, and hoping that you don't know how to do your own research from unbiased sources.

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  • Johhny
    Lv 5
    7 years ago

    Americans do not realize that the Federal Reserve is a privately owned European bank, controlled by the 5 biggest Euro banks. No Americans own or control the Reserve. The Rothschilds are only one who control the Reserve. Pres. Wilson wanted to dissolve them but failed,and so did Kennedy. They control our money and Congress has no power over them. The Obama/Bush bailouts are proof of that. If the bailouts had not been passed, the Reserve would have collapsed our economy and bankrupted America!

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  • Paul
    Lv 6
    7 years ago

    Ignorance. Go to YouTube and search on Federal Reserve. Specifically, Alan Grayson. Also, since so many posters really think they know what they are talking about on Y!A, do some Google searches and see what other members of Congress think about the fed. Its VERY enlightening.

    Everything the government gets involved in turns to shi* and the fed is another example of it. They have been supplying cash, billions of dollars, to foreign banks and wouldn't tell Congress where the money went. Its amazing.....

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  • lare
    Lv 7
    7 years ago

    people are OK with the fact that they can deposit money in the bank and it will be there for them when they want it back. the printing of money is a function of the Treasury, which is why the chairman of the FED reports to them. congress is incapable of running anything, look at how messed up the Postal Service is thanks to congressional oversight, instead of just letting the Postmaster General operate it.

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  • 7 years ago

    It is a bit of both. Their ignorance fosters their need not to care, since they do not understand basic Austrian economics and refuse to, as it challenges the very maxims on which they base their fundamentally flawed beliefs. I for one was out-raged for a very long time, but I'm calming down, as these idiots are still the majority, our very young and large minority will eventually over-run them.

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  • Anonymous
    7 years ago

    You have no clue about this topic.

    Source(s): BA Political Science
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