Debunking Federal Reserve conspiracy theories

[thekingsmen]

It's not a privately-owned institution. It's a central banking system with public and private components to it. The Federal Open Market Committee, who sets monetary policy, consists of the Board of Governors, who are appointed by the President and confirmed by the Senate, and the regional bank chairmen.

Questioning it is good. Believing in baseless conspiracies is counter-productive.

Where has it been for public for? Show proof that it is a public component...
Privately owned Institution just like the government of the U.S.

28 USC § 3002 - Definitions | LII / Legal Information Institute

“United States” means—
(A) a Federal corporation;
(B) an agency, department, commission, board, or other entity of the United States

 

[VerbalIntercourse]

Stop even arguing with these misinformed people Lukecage. It's not really worth it.

 

[Dusty Bake Activate]

but how come they don't have to divulge all of their transactions to the government? Could there ever be a situation where the fed reserve chairman disagrees with the gov in terms of what actions to take?

I'm not really up on this shyt so I'm just trying to learn.

Monetary policy is supposed to be independent of the bureaucratic pitfalls of government, so the FOMC is granted a good deal of free reign to make monetary decisions.

It's a bit of a dilemma because you always want transparency and accountability in a democracy, but at the same time, you want egghead nerds with expertise working in a clinical setting on monetary policy because that shyt is over the layperson's head by a mile. You definitely don't want these morons in Congress who believe in creationism and ran up a $16 trillion debt making monetary policy.

So there's no perfect answers. I suggested maybe an independent body of economic experts like the CBO or even make them a part of the CBO to oversee the Fed.

 

[Dusty Bake Activate]

Stop even arguing with these misinformed people Lukecage. It's not really worth it.

I'm definitely done responding to thekingsmen.

 

[Gallo]

Good stuff.

 

[tru_m.a.c]

lol I love how VVD dropped like 12 post, and then the first person to respond to him was like "the fed is evil"

at least thekingsmen is trying, but his points aren't as credible as his emotion

 

[Domingo Halliburton]

It blows my mind how little people know about the Fed. I was talking to some bartender freaking out about qe3 and how he was going to bury his money in his backyard. I was trying to convince him to put the shyt in at least a savings account but he was having none of it.

 

[Dusty Bake Activate]

It blows my mind how little people know about the Fed. I was talking to some bartender freaking out about qe3 and how he was going to bury his money in his backyard. I was trying to convince him to put the shyt in at least a savings account but he was having none of it.

Yeah most people don't even know what it is at the most basic level, like what its organizational structure is comprised of, hence all these posters in this thread calling it "a private bank." I didn't know much about it myself until fairly recently. Unfortunately a lot of people are introduced to the Fed via stupid ass conspiracy websites and amateur youtube videos with scary background music and apocalyptic imagery.

 

[Brown_Pride]

i think people tend to not trust stuff they don't understand...and that's undestandable, it does require some faith that things running honestly and truthfully...

 

[VerbalIntercourse]

if anyone wants a good critique of thr FED,

read Alan greenspans article on the FED from Ayn Rand's Capitalism: The Unknown Ideal

 

[zerozero]

props. subs for later reading

 

[OsO]

For the 345028532058923954298th time, the Fed is not a private bank outside the control of the U. S. government. It's not even a bank. It's a central banking system comprised of 12 regional Fed banks, their member banks and a Board of Governors who are government employees that make the decisions.

As far as your question, the answer is it's a dumb question. Read post [URL=http://www.the-coli.com/usertag.php?do=list&action=hash&hash=11]#11 [/URL] in this thread, please.

it's a private banking SYSTEM, and it is outside the control of the govt. the only public part of the whole system is the fact that congress and the president get to appoint people to key positions, but the fact the govt is dominated by financial lobbying destroys any leverage the govt had in appointing those offices.

the other reason we know the fed is outside the control of the govt is because when we try to get the fed to release information about certain economic measures, they look at us like

how a central banking cartel can refuse to disclose the numbers on the books of a country it supposedly reports to is truly disturbing. an employee does not tell a boss "no." therefore it is clear in this situation who is the boss and who is the employee.

and post #11 says the fed collects interest but then pays most of it back, which is technically true. but there are two problems i have with this: 1) what reason do i have to believe that there is any accountability in this process, especially when dealing with an entity that refuses to be transparent? and 2) why are we even outsourcing the control of our money supply in the first place? thats a terrible error in governing.

 

[OsO]

the point is, why can't our government control the money supply directly, why is a private company even necessary?

it makes no sense. 1) it's a fatal error in governing and 2) they're not even doing that great of a job... we've have several financial collapses since the implementation of the fed and we're currently 14 trillie in debt and climbing.

on every level the fed should be fired, and any idiot can see that...

well, almost any idiot.

 

[OsO]

I think if government bureaucrats in states agencies or parliamentary body were capable of handling those tasks, every industrialized nation in the world wouldn't have a central banking system.

so wait, we outsource the monetary responsibility because... we dont have people competent enough to do a good job?



thats the dumbest shyt i ever heard.

and even if that was the case why not just hire fed economists and still make the fed a completely public entity?

oh riiiight, because we are so concerned about keeping political and corporate influence out of monetary policy...

yea fukking right... big money owns the government and owns the politicians and the fed is just another manifestation of that principle.

 

[Dusty Bake Activate]

it's a private banking SYSTEM, and it is outside the control of the govt. the only public part of the whole system is the fact that congress and the president get to appoint people to key positions, but the fact the govt is dominated by corporate lobbying destroys any leverage the govt had in appointing offices.

the other reason we know the fed is outside the control of the govt is because when we try to get the fed to release information about certain economic measures, they look at us like

how a central banking cartel can refuse to disclose the numbers on the books of a country it supposedly reports to is truly disturbing. an employee does not tell a boss "no." therefore it is clear in this situation who is the boss and who is the employee.

and post #11 says the fed collects interest but then pays most of it back, which is technically true. but there are two problems i have with this: 1) what reason do i have to believe that there is any accountability in this process, especially when dealing with an entity that refuses to be transparent? and 2) why are we even outsourcing the control of our money supply in the first place? thats a terrible error in governing.

1. The Fed is not outside the control of the government. Monetary policy is made by the Board of Governors which are appointed by the President and confirmed by the Senate. It's outside the control of Congress, and I think that's a good thing for reasons I've already explained.

2. I don't know where you're getting this shyt about the Fed not reporting anything to the government from. The GAO audits the Fed regularly. Read post #10 in this thread. The Fed releases balance sheets just like every business or government agency.

3. The logic behind a system of central banking is necessary in a large industrialized economy for reasons already stated: keeping currency elastic, prevent banking panics, regulate banking institutions, maintain stable prices, control inflation, provide liquidity needs, and be a lender of last resort, etc. The government lacks the capacity to perform those duties. It's no surprise that every economically competitive nation has a central banking system.

4. You don't understand the Fed and you're just making unsubstantiated claims based on fear. It seems you just fear what you don't understand and you would rather be a demagogue and say hyperbolic shyt about a "banking cartel" outside the control of the government instead of just trying to learn about it first then draw conclusions later. Why not just research and learn first instead of leaping to conclusions you can't support? Federal Reserve System - Wikipedia, the free encyclopedia