I want to End the Fed. I want us to be on the Gold Standard. I d isagree with Bernankes and Yellins policies. I wish our Presidents has appointed other people with other policies. I support Ron Pauls proposed policies for the Fed and Money Policy. BUT, there is a whole other discussion which is bogus nonsense, that foreign central banks control the Fed, that the Rothschilds control the Fed, that Jews control the Fed, that the big banks control the Fed, that the Fed prifits by printing money and lending it to the US government and bankers pocket the proceeds. The facts follow. Educate yourself, be skeptical, dont believe everything you read on the internet. QUOTE The U.S. Government does not own shares in the Federal Reserve System or its component banks, but does receive all of the systems annual profits after a statutory dividend of 6% on their capital investment is paid to member banks ... UNQUOTE If you think a 6% return on investment is fleecing the government... QUOTE The stocks of the regional federal reserve banks are owned by the banks operating within that region and which are part of the system. ... The twelve Federal Reserve banks provide the financial means to operate the Federal Reserve System. Each reserve bank is organized much like a private corporation so that it can provide the necessary revenue to cover operational expenses and implement the demands of the board. A member bank is a privately owned bank that must buy an amount equal to 3% of its combined capital and surplus of stock in the Reserve Bank within its region of the Federal Reserve System. ... This stock may not be sold, traded, or pledged as security for a loan and all member banks receive a 6% annual dividend. ... No stock in any Federal Reserve Bank has ever been sold to the public, to foreigners, or to any non-bank U.S. firm. ... These member banks must maintain fractional reserves either as vault currency or on account at its Reserve Bank. ... The dividends paid by the Federal Reserve Banks to member banks are considered partial compensation for the lack of interest paid on the required reserves. UNQUOTE QUOTE All profit after expenses is returned to the U.S. Treasury or contributed to the surplus capital of the Federal Reserve Banks. Since shares in ownership of the Federal Reserve Banks are redeemable only at par, the nominal owners do not benefit from this surplus capital. In 2010, the Federal Reserve System contributed $79 billion to the U.S. Treasury. UNQUOTE So, to the degree that the Federal Reserve makes a profit by lending the US its own money back to it, those profits are returned to the US government. The stock price is paid at par value, i.e., the stock value is held constant, so evn if your bank has been forced to buy and hold stock since 1930, it will be repaid at the price it was bought at, no capital gain. And no matter how much money the Federal Reserve makes in profits, your bank will only get 6% return on those shares in dividends, and nothing for the fractional reserves that must be kept in the Federal Reserve. Everything above that goes back to the US government. QUOTE However, holding Federal Reserve Bank stock is unlike owning stock in a publicly traded company. The charter of each Federal Reserve Bank is established by law and cannot be altered by the member banks. Federal Reserve Bank stock cannot be sold or traded, and member banks do not control the Federal Reserve Bank as a result of owning this stock. They do, however, elect six of the nine members of the Federal Reserve Banks boards of directors ... UNQUOTE Here is how the 9 member board is chosen: QUOTE Class A 3 members, chosen by and representative of the stockholding banks. - member banks are divided into 3 groups based on size—large, medium, and small banks. - Each group elects one member of Class A. Class B 3 members - no director of class B shall be an officer, director, or employee of any bank represent the public with due but not exclusive consideration to the interests of agriculture, commerce, industry, services, labor, and consumers. - member banks are divided into three groups based on size—large, medium, and small banks. Each group elects one member of Class B. Class C 3 members - no director of class C shall be an officer, director, employee, or stockholder of any bank designated by the Board of Governors of the Federal Reserve System. They shall be elected to represent the public, and with due but not exclusive consideration to the interests of agriculture, commerce, industry, services, labor, and consumers. - Shall have been for at least two years residents of the district for which they are appointed, one of whom shall be designated by said board as chairman of the board of directors of the Federal reserve bank and as Federal reserve agent. UNQUOTE So, at least 2 are elected by small banks, 2 by medium sized banks. 2 more are elected by large banks WITHIN that district. Even if the Rothschilds own a majority of all the large banks, IN EACH DISTRICT, they are still outnumbered 2 to 1 by the reps of small and medium sized banks. (and the Rothschilds do not even own a majority of large banks in even a single district). Ah, but you will undoubtedly note that 3 members of the board in each district is appointed by the Federal Reserve Board of Governors. And using that math, if 2 are chosen by the big banks, and 3 by the Board of Governors, that makes a majority. BUT... QUOTE Governors are appointed by the President of the United States and confirmed by the Senate for staggered, 14-year terms. ... By law, the appointments must yield a fair representation of the financial, agricultural, industrial, and commercial interests and geographical divisions of the country UNQUOTE So, a majority of the boards in each district are elected by the small and medium-sized banks or appointed by the President of the US who is elected by the people. 4 + 3 = 7 of the 9 are not chosen by the large banks. At this point you should point out that the President is a so-and-so, and I shall agree, but this undermines the whole The Federal Reserve is a private entity owned by foreign central banks meme. By the way, I had no bookmark to this stuff. I just googled it a few minutes ago: {Federal Reserve ownership} If one quits believing anything screamed at them by internet morons, and uses a little intellectual curiosity, one can rid oneself of much silly nonsense. en.wikipedia.org/wiki/Structure_of_the_Federal_Reserve_System
Posted on: Tue, 28 Jan 2014 01:39:17 +0000
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