The Federal Reserve

The Federal Reserve, the Fed, a source of numerous memes.
A topic that has reached the critical mass of mainstream consciousness.
A question that always lingers in the air is...who controls the Fed?
Officially, the Fed has four main responsibilities:
1. Conducting the nation's monetary policy by influencing money and credit conditions in the economy in pursuit of full employment and stable prices.
2. Supervising and regulating banks and other important financial institutions to ensure the safety and soundness of the nation's banking and financial system and to protect the credit rights of consumers.
3. Maintaining the stability of the financial system and containing systemic risk that may arise in financial markets.
4. Providing certain financial services to the U.S. government, U.S. financial institutions, and foreign official institutions, and playing a major role in operating and overseeing the nation's payments systems.

“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”
Those are the words of Henry Ford, founder of the Ford Motor Company.

Unofficially, the Fed enriches the top 0.1% in a process known as the Cantillon Effect, which basically states that money printing itself increases inequality via asset price inflation...
The Cantillon Effect and Wealth Inequality:
https://www.youtube.com/watch?v=rv5xl1AEeQs

Moreover, we currently have a situation whereby corporations run by executives with HUGE stock packages borrow money from Fed-fed banks for roughly free, buy back stock - thus boosting its price, then sell their own shares, using the proceeds to "diversify" into other assets (namely other stocks), expecting the Fed to keep the asset-inflation scheme going indefinitely.
The recent spate of bailouts has highlighted the severity of the situation.

The Federal Reserve Act was originally granted a twenty-year charter to the Federal Reserve Banks, however on February 25th, 1927, it was extended indefinitely.
This proved crucial, as the sentiment in 1933 (nearing the end of the original 20 year charter) was not exactly positive with regards to the Fed...
The Truth about the Great Depression?
https://www.youtube.com/watch?v=n_JahIpwCXs


On June 4th, 1963, US President John F. Kennedy issued Executive Order 11110, authorising the Secretary of the Treasury to issue silver certificates.
This was the first of a series of moves to take control of US money back from the Federal Reserve by giving greater power to the Treasury.
On November 22nd, 1963 John F. Kennedy was assassinated.

The central bank in each country is the legal entity that manages the nation’s money supply and can lend money, with interest of course, to the government and other private banks in the country. This is how it all works:
1. When the government needs more money, they ask the treasury department for money by issuing an IOU or government bond, which is a bond issued by the national government with a promise to pay periodic interest payments and to repay the face value on the maturity date.
2. The Treasury (an executive department of government) receives the bond from the government and forwards it to the nation’s Central Bank.
3. The Central Bank (a privately owned bank and the entity that owns the monetary system of the nation) then writes a check to the local banks in the country for the value of the bond and authorises them to create this new money. This central bank, of course, just invents money out of thin air.
4. The local commercial banks then type numbers on a screen and create money out of nothing. At this exchange at the private banks, money is officially created and can be used to pay government bills.

Another part of this money creation system happens on the commercial banks’ side. Every time you take out a loan, banks simply type in some numbers digitally in your account and charge you interest on it.
So basically, each time the bank makes a loan, the bank doesn’t use other people’s deposited money to loan to you.
It creates new money by typing digits into a computer.
97% of all money is generated that way. Only 3% is the physical paper cash and coins that we carry.
Moreover, commercial banks lend out up to 10 times more money than they actually have in reserves; a practice known as fractional reserve lending.
To demonstrate how absurdly the system is currently leveraged, that reserve requirement has recently been cut to zero. Yes, zero.




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