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Reply #45: From your own link... [View All]

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SDuderstadt Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Mar-04-08 10:51 AM
Response to Reply #44
45. From your own link...
Edited on Tue Mar-04-08 10:52 AM by SDuderstadt
'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. As the nation's central bank, the Federal Reserve derives its authority from the U.S. Congress. It is considered an independent central bank because its decisions do not have to be ratified by the President or anyone else in the executive or legislative branch of government, it does not receive funding appropriated by Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms. However, the Federal Reserve is subject to oversight by Congress, which periodically reviews its activities and can alter its responsibilities by statute. Also, the Federal Reserve 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."


My "problem" as I stated earlier is that uninformed people wrongly interpret the term "private" to mean "privately owned", which is simply not the case. In the instance at hand, the "private" aspect of the Federal Reserve system simply means that it operates somewhat independently of the U.S. government on purpose. It doesn't mean that it is privately owned, a distinction that its detractors rarely, if ever, make. The "ownership" issue is somewhat difficult to comprehend, given the private ownership of the "member" banks but, as stated in your own source, the Federal Reserve is not privately owned and is, in fact, an agency of the Federal government.

It's easy to see why the issue confuses most people. However, that doesn't absolve them of the responsibility of learning how our government works before launching silly, uninformed attacks.

http://www4.law.cornell.edu/uscode/12/ch3.html
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