Federal Reserve System
My lecture today is on the special challenges that face the Federal Reserve and the global economy in an increasingly interconnected world. ... actions taken by the Federal Reserve influence economic conditions abroad.
The US dollar is used in most international transactions, so it stands to reason that anything that happens with the US economy will affect international finances in a substantial way.
How federal is it?
There are three key entities in the Federal Reserve System: the Board of Governors, the Federal Reserve Banks (Reserve Banks), and the Federal Open Market Committee (FOMC). The Board of Governors, an agency of the federal government that reports to and is directly accountable to Congress, provides general guidance for the System and oversees the 12 Reserve Banks.
The Federal Reserve is subject to oversight by the Congress, which often reviews the Federal Reserve's activities and can alter its responsibilities by statute.
Effective congressional oversight is complicated by the complex, technical nature of monetary policymaking. There is no group with monetary policy expertise tasked by Congress with evaluating the Fed's actions.
The conduct of monetary policy is outside the review of the Government Accountability Office (GAO).
Though the Congress sets the goals for monetary policy, decisions of the Board--and the Fed's monetary policy-setting body, the Federal Open Market Committe--about how to reach those goals do not require approval by the President or anyone else in the executive or legislative branches of government.
Who really owns it?
As set forth in the Federal Reserve Act, each Reserve Bank is subject to "the supervision and control of a board of directors." Much like the boards of directors of private corporations, Reserve Bank boards are responsible for overseeing their Bank's administration and governance, reviewing the Bank's budget and overall performance, overseeing the Bank's audit process, and developing broad strategic goals and directions. However, unlike private corporations, Reserve Banks are not operated in the interest of shareholders, but rather in the public interest.
Some observers mistakenly consider the Federal Reserve to be a private entity because the Reserve Banks are organized similarly to private corporations. ... Commercial banks that are members of the Federal Reserve System hold stock in their District's Reserve Bank. However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System.
Yes and no.
The 12 regional reserve banks aren't government institutions, but corporations nominally 'owned' by member commercial banks.
Some people think the Federal Reserve banks are United States Government institutions. They are not Government institutions. They are private credit monopolies which prey upon the people of the United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lenders.
Our money system is not what we have been led to believe. The creation of money has been privatized, or taken over by a private money cartel. Except for coins, all of our money is now created as loans advanced by private banking institutions -- including the Federal Reserve.
The hidden money supply
John Williams of Shadowstats noted the oddity of the announcement, opining that M3 was probably the most important statistic produced by the Fed and the best leading indicator of economic activity and inflation. The Fed's lack of interest in the components of M3 can be directly linked to its inability to foresee the 2008 collapse of the financial system.
An expose' of the people and forces behind the takeover of the US economy by the Federal Reserve system, on behalf of the oligarchs.
...the Federal Reserve System promotes monetary instability and the business cycle.
The one thing the Fed failed to accomplish above all else was what it was established to do in the first place. But it's much worse than that if we understand a cartel's real motives. It's not to serve the public interest. It's to abuse it because that's how it benefits most. It's able to do it with its legally sanctioned concentrated power and a friendly government in league with it as partners or facilitators. It's from that cozy hidden from view arrangement that it's able to get away with the grandest of grand thefts.