Asked in BankingEconomicsUS Government
Who controls the Federal Reserve?
February 09, 2015 3:56PM
On December 23, 1913, the Federal Reserve System, which serves as the nation's central bank, was created by an act of Congress. The System consists of a seven member Board of Governors with headquarters in Washington, D.C., and twelve Reserve Banks located in major cities throughout the United States.
As stated on the Federal Reserve's website, "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."
It goes on to say that "As the nation's central bank," it derives its authority from the U.S. Congress, but it is considered an independent central bank because its decisions do not have to be ratified by anyone in the legislative or executive branches of government, nor does it receive funding appropriated by Congress. It is; however,
"subject to oversight by Congress, which periodically reviews its activities and can alter its responsibilities by statute" and it "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."
Although the Federal Reserve Bank states it is not private on their website, they operate under terms that no other "government institution" operates by. For example, they are not required to submit financial information and are not subject to IRS audits, nor do they publish the amount of money they print to the American public. Given these terms, it's hard to believe the Federal Reserve is a government institution providing a genuine service to the American people. A commonly held belief is that The FED is a privately owned central bank. Central banks are supposed to implement a country's fiscal policies. They monitor commercial banks to ensure that they maintain sufficient assets, like cash, so as to remain solvent and stable. Central banks also do business, such as currency exchanges and gold transactions, with other central banks. In theory, a central bank should be good for a country, and they might be if it wasn't for the fact that they are not owned or controlled by the government of the country they are serving. Private central banks, including the United States FED, operate for profit.
In addition to being part of international corporate banking systems that are rooted in Europe and control a majority of the world's wealth, they operate through a fractional reserve system. This system allows these central banks to lend money at interest to the governments of the world, creating debt that can never be repaid. Many people in the U.S. believe that the operation of the Federal Reserve goes against the Constitution of the United States because it operates independently of the government, and there are no regular audits, oversight capacity, or control exercised by any elected officials. Under the Constitution all power and rights are ultimately vested in the citizens of the United States. The banks that make up the Federal Reserve are controlled by corporations and families who have controlled international banking since before the Constitution was created.
More Information and opinions:
- There have been three central banks in the nation's history. What they all have in common is the practice known as "fractional banking."
- This website shows who owns the FED: http://www.save-a patriot.org/files/view/whofed.html. On the list are: The Rothschilds of London and Berlin; Lazard Brothers of Paris; Israel Moses Seif of Italy; Kuhn, Loeb and Warburg of Germany; and the Lehman Brothers, Goldman Sachs, and the Rockefeller families of New York.
- The FED is the only for-profit corporation in America that is exempt from both federal and state taxes. The FED takes in about one trillion dollars per year tax-free.
- The Supreme Court has ruled that the Federal Reserve is independent of the government and privately owned.
- It is historic fact that the plan for the Federal Reserve was created by banking interests in great secrecy at Jekyl Island in 1910. J.P. Morgan and Paul Warburg were the primary architects. Political impetus for this action came from the Money Panic 1907. It is also historic fact that Thomas Jefferson opposed Alexander Hamilton who wanted do create a national bank backed by the Rothschild banking family. The book "Secrets of the Federal Reserve" is available. It has been transposed to HTML and cross linked by the Modern History Project. These links make it easier to see the links between the member banks that own the Federal Reserve and private banking interests.