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The Federal Reserve Act gave allowed PRIVATE bankers (families) to control the issue and rate of interest for the money supply. Originally the US Constitution allowed the US Govt to print its own money (interest free). Now the Federal Reserve gives the US Government permission to print money and then charges us interest for the privilege.

The USA now borrows its own money, and has to pay it back to the private Federal Reserve (principle plus interest). To pay the interest, we have to borrow it... which creates further debt and interest which is why the Federal Deficit can NEVER be repaid.

So instead of just printing our own money, the US Govt borrows it and has to pay it back at interest.

Also the Federal Reserve controls the interest rate from banks, and the fractional reserve ratio which allows banks to loan more money than they actually have or exists. If they have $1,000 on deposit and the fractional reserve is 10, then they can loan $10,000. If this amount is deposited in another bank, that bank could loan at 10x to the sum of $100,000 etc. Apparently this can continue for 9 levels.

In reality money is created out of thin air, when we get a loan, and then this has to be paid back with "real money" and interest.

There is no reason for the government to have to get permission to print and borrow its own currency. However it gives great profit and control to a few.

Voting about the "federal reserve" is probably unnecessary since it should not exist in the first place. Congress should be forced to follow the US Constitution or be thrown out of office or tried for treason.

AnswerThe Federal Reserve was created in secret meetings of powerful bankers. Its operations continue to be completely secret. It has the power to CREATE a Stock Market bubble like the one we had in 2000, and rapid escalation of property values like we have seen in recent years through a policy of easy money. It has the power to ENGINEER a financial crisis such as we are now experiencing through a sudden and violent contraction of the money supply.

Every U.S. Citizen should be aware of the issues surrounding the Federal Reserve.

For more information see the link below.

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Q: Under the Federal Reserve Act of 1913 the what powers do Federal Reserve banks have?
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Related questions

Who borrows money from federal reserve banks?

All member banks of the Federal Reserve in USA can and do borrow money from the federal reserve. The Federal Reserve is the banker of banks to whom the banks go when they need money.

Where is money sent after its made?

When money is minted, the first place it goes is the Federal Reserve. The Federal Reserve is like the ultimate lender. All banks get their money from the Federal Reserve.

What place national banks under the control of a central authority?

Federal Reserve Act

What part of the Federal Reserve System serves the daily needs of banks across the country?

Federal Reserve Banks

What acts as banks for banks?

federal reserve system

Federal Reserve System what percentage of stock ownership represents a controlling shareholder?

Only banks can own stock in the Federal Reserve banks. However, this stock ownership does not provide the members banks with any control over what the Federal Reserve system does. Any bank that wants to become a member of the Federal Reserve Bank within their Federal Reserve District must invest a certain percentage of their capital in Federal Reserve stock. The Federal Reserve will pay dividends on this stock but banks do not become controlling shareholders as a result of these investments. The individual Federal Reserve banks are controlled (for lack of a better term) by the boards of directors of the Federal Reserve banks and by the board of governors in Washington, D.C.

How is federal reserve system affiliated with banks?

Actually the federal reserve system is not affiliated with any banks. The banks are affiliated to the federal reserve. The Federal Reserve is the central bank of the United States of America and it supervises/oversees the banking operations of all banks in USA. They are responsible for the proper functioning of all the banks and they are also the lender to the banks (The place where banks go to borrow money if they are short of funds)

Who does the federal reserve offer banking services to?

The Federal Reserve offers banking services to the many banks in the United States. The Federal Reserve is where banks store large sums of money.

The federal reserve banks mainly do business with?

Other banks

What do the securities held as assets by the Federal Reserve Banks consist mainly of?

The securities held as assets by the Federal Reserve Banks consist mainly of

The government banks with the?

federal reserve bank

Who do banks answer to - who regulates them?

The Federal Reserve regulates banks and the banking system.