At 7/28/12 10:27 AM, morefngdbs wrote:
2- THe Federal Reserve operates that it will make a guaranteed 6% profit each year , which makes & proves it is a for profit business+ (what is rarely mentioned) the member banks get to keep the interest they make on 'their loans '
This is entirely false. The member banks are, as I said earlier, required to own capital stock in their regional bank. The regional banks pay a set 6% dividend on the member banks' paid-in capital stock each year, returning the rest to the US Treasury Department. 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. The Federal Reserve Banks are not operated for the purpose of earning profits for their stockholders. The Federal Reserve System does earn a profit in the normal course of its operations, but these profits, above the 6% statutory dividend, do not belong to the member banks. All net earnings after expenses and dividends are paid to the Treasury.
& futher as per the Fed requirement that 10 % be held as a reserve & fractional banking rules (aka ponzi scheme) means they can "loan out" ten times as much in loans as they actually hold in "reserve" called creating money out of thin air & it is why & where billions of so called wealth went when the housing buble burst.
You have no idea what a ponzi scheme is, but regardless, what alternative do you propose? You want an end to the banking system as a whole? Without FRB banks cannot lend. Fractional reserve banking is the practice of only holding a fraction of of a given bank's deposits on hand at any one time to satisfy demands from their depositors. If you do away with fractional reserve banking, banks literally have to hold everything they take in on deposit against demands from their depositors. 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.
Federal Reserve Statistical Rel;ease for Sept 24 2008 at 7,049 Billion dollars, 10% of that puts the American people on the fhook for interest payments on 700 Billion dollars (above 7& beyond their 6%) this is so the thieves....I mean banks can retain the reserves to accumulate interest on ten times that amount in LOANS !
I have no idea what you're trying to say here.
3- The Fed does NOT get appropriations from Congress ! IT gets its money from Congress without Congressional approval by operating in " open market operations"
Uh, what? Are you seriously trying to tell me the Federal Reserve gets money from Congress? How do you get something "from" Congress without Congressional approval? This makes literally zero sense. The (again) publicly appointed Board of Governors controls the emissions of Federal Reserve Notes and can make monetary policy decisions largely independent of political pressure. The issuance of US Notes, on the other hand, would be controlled by the Treasury Department, an arm of the executive branch and a purely political entity. Monetary policy, in this economist's view, ought to be based on the needs of the economy, not on the needs of current incumbent political party.
Which means whent he Treasury issues bonds & puts them into the hands of Bond Dealers...you or I would have to have "earned the money to buy them.
The Fed simply prints the money (creating it from blank paper at 6 cents per hundred dollar note) & buys the bonds Which the American TAX PAYER MUST PAY INTEREST ON!
Interest on your own money....greatest rippoff scam in the ENTIRE WORLD !
You have absolutely no idea what you're talking about. Everything you're saying is a bunch of poorly regurgitated conspiracy theory ramblings. The Treasury Department prints Federal Reserve Notes and then sells them to the Federal Reserve system for an average cost of about 4 cents per bill; however, the Fed must present as collateral for the currency an amount of Treasury securities that is equivalent in value to the currency purchased. The Federal Reserve collects interest on all the Treasury securities it owns, including the ones held as collateral. Nearly all the Federal Reserve's net earnings are repaid to the Treasury. This is done per an agreement between the Board of Governors and the Treasury. When the Fed owns a bond, the Treasury is going to get back a substantial portion of the interest. From the Treasury's point of view, the more bonds the Fed owns, the better.
4 -FACT- THe control Congress has over the FED....from their own website is this - "The Federal Reserve is subject to over sight by Congress, which periodically reviews its activities
& can alter its responsibilities by statute"
....HMMMM reviews its activities, that MEANS ...AFTER THE FACT, afte the Fed has done whatever it pleases, Congress can reiew it, sure sounds like the Government is in control to me !
What's up with you and other conspiracy theorists making sure "Fed" is in all caps? Is FED scarier than just Fed? Congress can review it, so can the Government Accountability Office. I'm sure the GAO is in on the plot, too. Just like every member of Congress since the Federal Reserve's conception.
IF the Fed was actually a Governemtn held & controlled organization. he Governemtn could issue its own currency, without having to pay 6% GUARANTEED Interest as well as the outrageous interest on fractional reserves (money made up out of thin air) to a middle man.
It is a government controlled organization.
The final problem I will mention is how can the so called Bank of last resort AKA the Federal Reserve ...need a bail out by the American People ?
The Federal Reserve was never bailed out. The never notion of that is absurd.
;;;;WRONG THE FEDERAL RESEVE IS A PRIVATELY OWNED & OPERATED FOR PROFIT BUSINESS
AND IS THE ONLY BUSINESS IN THE USA, THAT IS TAX EXEMPT: :
NO YOU'RE WRONG HEY I CAN SCREAM AT YOU TOO
INSTEAD OF JUST SAYING THE SAME THINGS OVER AND OVER AGAIN PLEASE ACTUALLY REFUTE SPECIFIC THINGS I SAID LIKE HOW I'M DOING WITH YOUR POSTS OH IT HELPS TO HAVE SOURCES AND ALL THAT STUFF COMES ALONG WITH INTELLIGENT COHESIVE POSTS THANKS! ALSO THERE ARE PLENTY OF BUSINESS THAT HAVE TAX EXEMPTIONS!
It doesn't say it was getting rid of the FED.
Okay. Keep in mind you said this:
THe Last President who decided to get rid of the Fed
So I guess he wasn't trying to get rid of it. Let's see what he was trying to do!
IT was breaking their monopoly by issuing Government securities (aka money) backed by silver.
I'll make a new post for this because I can't fit it in here. Stay tuned!