Can someone please comment on this?

[sedele]

This was posted on a subaru forum, NASIOC.COM in a very popluar thread about Dr. Paul.

Link: http://forums.nasioc.com/forums/showthread.php?p=19730779#post19730779


Originally Posted by 06stiwagon
The banking industry is a scam. The Federal Reserve is not part of the government. The Fed through the the authority granted to them by Congress in 1913 prints money out of thin air and loans it to the government, and through the income tax we pay the interest on the loans.

Again the Fed is PRIVATELY OWNED

Why are we paying interest on loans that we could create ourselves interest free?

There is so much more to it than this, but maybe that is enough to get you interested in learning about it. If you don't understand the Fed you can not understand our government.

Response:

Uh, no. The member banks of the Federal Reserve are private institutions, but they are governed by the Board of Governers of the Federal Reserve System (THE FED), which is a government agency and part of the executive branch. It is an independent government agency in the sense that it is not part of one of the Executive departments, in the same way that the CIA, SEC, NASA, etc are not part of individual departments. The Fed is still a government agency, its members are appointed by the president and confirmed by the Senate, and it (the Fed) IS NOT PRIVATELY OWNED. That is a gross misunderstanding of reality, perpetuated by people who benefit from your mistake.

Anybody?

[Chester Copperpot]

The fed is privately owned. In court cases where there vehicles have gotten into accidents with citizens, and the plaintiff goes to sue the government, its been determined that since the federal reserve is its own private company that the federal govt has no liability for such a claim.

I'll be able to help you with almost any question youve got on this topic.

[Kregener]

The Federal Reserve System (also the Federal Reserve; informally The Fed) is the central banking system of the United States. The Federal Reserve System, created in 1913, is a private banking system composed of (1) the presidentially-appointed Board of Governors of the Federal Reserve System in Washington, D.C.; (2) the Federal Open Market Committee; (3) 12 regional Federal Reserve Banks located in major cities throughout the nation acting as fiscal agents for the U.S. Treasury, each with its own nine-member board of directors; (4) numerous private U.S. member banks, which subscribe to required amounts of non-transferable stock in their regional Federal Reserve Banks; and (5) various advisory councils.

Currently, Ben Bernanke serves as the Chairman of the Board of Governors of the Federal Reserve System.

So saying the federal Reserve System is a government agency, is like saying The New York Stock Exchange is too, because the SEC oversees it.

Fred Thompson would say: "That dog don't hunt".

[Chester Copperpot]

And the main point people need to understand is that there really is NO oversight of the federal reserve.. Oh sure, the president will apoint the chairman of the board of governors, but he picks from a list prepared by the banks.. When he picks somebody who the banks dont like (like Jimmy Carter did) its amazing the amount of shit that will befall the economy.

No oversight, no real audits, no answering to anybody. They create money out of thin air and bankrupt this country at the same time.

[bbachtung]

The Federal Reserve's own propaganda states the following:

Regarding being a part of the executive branch:



The Federal Reserve System is considered to be an independent central bank because its decisions do not have to be ratified by the President or anyone else in the executive branch of government. The System is, however, subject to oversight by the U.S. Congress. The Federal Reserve must work within the framework of the overall objectives of economic and financial policy established by the government; therefore, the description of the System as “independent within the government” is more accurate.

Source: http://www.federalreserve.gov/pf/pdf/pf_1.pdf

Here's their own take on who owns them:



Who owns the Federal Reserve?

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." For example, the Reserve Banks issue shares of stock to member banks. 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. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year.

Source: http://www.federalreserve.gov/generalinfo/faq/faqfrs.htm#5

[sedele]

Thanks for the responses guys. :)