Below comes from the official FED web site. Red italics are mine.
The Federal Reserve System fulfills its public mission as an
independent entity within government.
It is not "owned" by anyone and
is not a private, profit-making institution.( not profit making? what about 6% divident below?)
As the nation's central bank, the Federal Reserve derives its
authority from the Congress of the United States. It is considered an
independent central bank because its monetary policy decisions do not
have to be approved by the President or anyone else in the executive or
legislative branches of government, it does not receive funding
( it prints it ) appropriated by the 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 the
Congress, which often reviews the Federal Reserve's activities and can
alter its responsibilities by statute. Therefore, the Federal Reserve
can be more accurately described as "independent within the government"
rather than "independent of government."
The 12 regional Federal Reserve Banks, which were established by
the Congress as the operating arms of the nation's central banking
system, are organized similarly to private corporations--possibly
leading to some confusion about "ownership." ( can it be more direct? ) For example, the Reserve
Banks issue shares of stock to member banks. However, owning Reserve
Bank stock is quite different from owning stock in a private company.
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; dividends are, by law, 6 percent per year.
Hang on: not operated for profit! But for every share or stock or money issued given to other banks or government it earns 6%. So, it prints money, releases credit in the market by a stroke of a pen, gives it to others to use and demands at least 6% divident or interest for it. Solid business.
The statement still does not clearly say who actually owns the FED, and for that matter any other central bank. Member banks or top bankers?
Chuck Prince, CEO of Citibank, said in 2007 - after a 25 year bull market BOND market, basically adding debt upon debt in the market, "As long as the music keeps going, we can continue this fraud"
Sounds a bit like all the feeders and investors who took money from others and pumped it into Bernie Madoff Ponzi sceme...hey the music plays...keep going.. when will it all bust?
http://www.federalreserve.gov/faqs/about_14986.htm
as to who owns the FED
Unfortunately the ECB web site does not ahve any details as to who owns it:
http://www.ecb.europa.eu/home/html/directory.en.html
Monday, June 18, 2012
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