The Fed Is a Purely Political Institution, and It's Definitely Not a Bank. \ stacker news ~bitcoin

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The Fed Is a Purely Political Institution, and It's Definitely Not a Bank.mises.org/wire/fed-purely-political-institution-and-its-definitely-not-bank

40 sats \ 29 comments \ @Undisciplined 16 Jan 2023 bitcoin

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10 sats \ 21 replies \ @GhostofTruth 16 Jan 2023

It's the center of the Fiat Fraud. But at least they prefer a capitalistic world and not this commie WEF-style dystopia.

0 sats \ 19 replies \ @Undisciplined OP 17 Jan 2023

I think you're giving them too much credit. The Fed is literally owned by the big banks and they are all on board with WEF, at least rhetorically.

10 sats \ 17 replies \ @orthzar 17 Jan 2023

The Fed is literally owned by the big banks

How? Congress created the Fed by legislative fiat. 99% of the profits from the Fed are sent to the US Treasury. And Congress unilaterally changes the Fed about once a decade. If the Big Banks owned the Fed, they would be getting most of the profits and they would be the ones changing the Fed.

Moreover, all banks in the US are heavily regulated by government agencies setup by Congress and the state legislatures. Every time the big banks try to flex their muscles, they get hit with hundred million dollar fines.

If anything, it would be more accurate to say that the US government owns the big banks.

10 sats \ 1 reply \ @GhostofTruth 17 Jan 2023

I recommend You to read Griffins "The Creature from Jekyll Island". That gives You an idea of the real balance of power. Politics depends on the Fed's money printer like never before (same in other countries) and the little contribution to the Treasury is a joke in relation to the wealth transfer the owners of the Fed realise year by year. Think of the Fed as lender of last resort, refinancing hub, RRepo etc...

0 sats \ 0 replies \ @247bf84fda 25 Aug freebie

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3 sats \ 13 replies \ @Undisciplined OP 17 Jan 2023

From the St. Louis Fed's website:

While the Board of Governors is an independent government agency, the Federal Reserve Banks are set up like private corporations. Member banks hold stock in the Federal Reserve Banks and earn dividends.

https://www.stlouisfed.org/in-plain-english/who-owns-the-federal-reserve-banks

10 sats \ 5 replies \ @orthzar 17 Jan 2023

Ya, you've proven my point. The Fed banks are "government agencies", but with some aspects of Government Sponsored Enterprises, namely dividends.

Plus, corporations are only private in the sense that the government doesn't decide what they produce. But the government makes all other decisions (e.g. ESG policies, the structure of the corporation, whether or not each corporation can sell stock, etc). In the case of the Fed, it can only do a limited range of things: e.g. lending money and buying financial instruments. Congress prohibits the Fed from doing anything else, like starting up a factory. The Fed is nothing like an ordinary corporation.

10 sats \ 1 reply \ @GhostofTruth 17 Jan 2023

The CBs are financing the deficit spending and therefore hold all the power in their hands. You are confusing some laws with real power in my opinion.

0 sats \ 0 replies \ @247bf84fda 25 Aug freebie

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0 sats \ 1 reply \ @Undisciplined OP 17 Jan 2023

I agree that it is unlike other corporations, and I'm not really claiming it is privately owned, rather that the Fed and the banks aren't really capitalist institutions. The Fed managers are drawn from the banks and the banks earn dividends from Fed activities, but the appointees are chosen by the state, so they have to appease the regime, too.

I think part of what you're missing about the profit sharing between the banks and treasury is that the Fed's lending goes through the banks, so they inherently make huge profits off of the Cantillion effect, by being the first users of the new money.

I'll also admit "own" was a somewhat poor word choice, because you're obviously correct that they are not allowed to use it however they want. It's a loose way of speaking that can be useful with people who don't realize the banks are direct shareholders in the Fed.

Notice though, that it isn't the Fed banks that are government agencies, it is the Board of Governors. The Fed banks are considered "private" corporations, although neither of us would consider that an accurate label.