Federal Reserve: fact or conspiracy?

Discussion in 'Economics' started by rselitetrader, Jul 27, 2010.

  1. According to this site, the Fed is good:

    http://hidhist.wordpress.com/bankst...onspiracy-theories-and-other-financial-myths/

    But according to Bill Still in Money Masters, the Fed and the World Bank for the New World Order are the ultimate evils that seek to enslave all mankind through debt:

    http://www.youtube.com/watch?v=EaHwg7xhueQ

    I would like your input. Thanks.

    ==============

    I will quote the first link here: (Please note that I have searched the website of College of Charleston, and there was no Edward Flaherty, Ph.D. in the Department of Economics; there was department of business, not department of economics in the college of charleston.)

    -------------------------
    Debunking the Federal Reserve Conspiracy Theories (and other financial myths)

    BY: Edward Flaherty, Ph.D. Department of Economics College of Charleston, S.C.

    Facts: Yes, the Federal Reserve banks are privately owned, but they are controlled by the publically-appointed Board of Governors. The Federal Reserve banks merely execute the monetary policy choices made by the Board. In addition, nearly all the interest the Federal Reserve collects on government bonds is rebated to the Treasury each year, so the government does not pay any net interest to the Fed.

    Facts: No foreigners own any part of the Fed. Each Federal Reserve bank is owned exclusively by the participating commercial banks and S&Ls operating within the Federal Reserve bank’s district. Individuals and non-bank firms, be they foreign or domestic, are not permitted by law to own any shares of a Federal Reserve bank. Moreover, monetary policy is controlled by the publically-appointed Board of Governors, not by the Federal Reserve banks.

    Fact: Independent accounting firms conduct full financial audits of the Federal Reserve banks and the Board of Governors every year. The Fed is also subject to certain types of audits from the Government Accounting Office.

    Facts: The Federal Reserve rebates its net earnings to the Treasury every year. Consequently, the interest the Treasury pays to the Fed is returned, so the money borrowed from the Fed has no net interest obligation for the Treasury. The government could print its own currency independent of the Fed, but there would be no effective safeguards against abuse of this power for political gain.

    Facts: The Federal Reserve banks have only a small share of the total national debt (about 7%). Therefore, only a small share of the interest on the debt goes to the Fed. Regardless, the Fed rebates that interest to the Treasury every year, so the debt held by the Fed carries no net interest obligation for the government. In addition, it is Congress, not the Federal Reserve, who is responsible for the federal budget and the national debt.

    Facts: Kennedy wrote E.O. 11,110 to phase out silver certificate currency, not to issue more of it. Records show Kennedy and the Federal Reserve were almost always in agreement on policy matters. He even signed legislation to give the Fed more authority to issue currency.

    Facts: McFadden was incorrect regarding the Fed costing the government money. However, later economic analysis agrees with him that Federal Reserve policy blunders had a substantial role in causing the Depression. However, his implication that this was done deliberately has no basis in fact. Moreover, for a dozen years prior to his rant, McFadden had been the chairman of the House subcommittee that oversaw the Federal Reserve. Why didn’t he do anything to reform or abolish the Fed while he had the chance?

    Facts: The banking system is indeed able to create money with a mere computer keystroke. However, a bank’s ability to create money is tied directly to the amount of reserves customers have deposited there. A bank must pay a competitive interest rate on those deposits to keep them from leaving to other banks. This interest expense alone is a substantial portion of a bank’s operating costs and is de facto proof a bank cannot costlessly create money.

    Fact: The term ‘lawful money’ does not refer to gold or silver coin, but to types of money which the government would permit banks to use when tabulating their reserves. These types of money included, but were not limited to, gold and silver coin.

    BY: Edward Flaherty, Ph.D. Department of Economics College of Charleston, S.C.
     
  2. Hello

    Hello

    I can assure you that the vast majority of the stuff printed about FED conspiracies is bullshit, my old man was on the board of the bank of canada in the 70's, which is basically the Canadian version of the Fed and there was nothing corrupt going on there, the central banks are lined up the way they are for a reason, feel free to ask a question, and i will answer it by repeating his response to me, it may take me a couple days to respond though, as i will wait till i see him next, And please dont ask for personal information i will not answer questions about that.

     
  3. Sodajerk

    Sodajerk

    The Money Masters, now a classic, is viewable in one piece here:

    http://video.google.com/videoplay?docid=-515319560256183936

    A fascinating and informative account of the economics behind historical and current events. An excellent way to invest 3 1/2 hours of your time.
     
  4. moarla

    moarla

    there is no reason for a central bank
     
  5. +1
     
  6. Retief

    Retief

    Oh yeah, that will really clear shit up. Third-hand information dating from the 70's from a retired foreign guy of a PHUCKING CANADIAN organization. Anybody have a friend-of-a-friend that was on the board of the Bank of Mexico? That should be relevant too. Mexico is practically part of the US; there's even a state that has the name Mexico in it.
     
  7. Hello

    Hello

    Or instead you could continue believing that the boogeyman, and the rothchilds are pulling the strings on the economy......

    I just gave you unprecedented access (by ET standards) to a central banker of a G7 country, and you decided it was not good enough, WTF am i supposed to say?!?! Keep playing the game you man, anyone who actually wants to learn can ask questions......
     
  8. dtan1e

    dtan1e

    C$ is not a reserve currency, 2) Bank of C doesnt do stuff like giving away taxpapers $ tobanks and camouflaging it with fancy moves like lending close to zero and paying higher T rates
     
  9. Retief

    Retief

    There's nothing unprecedented by ET standards. It's the same old BS. Useless information on an anonymous message board.
     
  10. Hello

    Hello

    You are an idiot, congrats on ruining it for everyone else, you are the sole reason i dont post anymore in economics/trading sections. I guarantee i could provide you a picture with 2 of the last three Governors of the bank of Canada, and an uncut sheet of 20 dolllar bills which is signed by 6 of the last 8 governors of the bank of Canada. The only ones my dad didnt get were Rasminsky and Towers......

    Place your bet if you think i am bullshitting, i will readily bet you 20k right now if we drop this money into escrow.
     
    #10     Jul 27, 2010