Quote:
Originally posted by Rearden
The private member banks must commit 6% of that bank's capital as an investment in the Reserve Banks -- its stock in the Fed system. These banks are paid a dividend set by law at 6% of the funds they have committed (invested) in the Reserve Bank. These dividends are fully taxable by federal and state governments.
Saying that the Federal Reserve is privately owned is a common anti-government and anti-capitalist conspiracy theory. In truth, the Federal Reserve has both public and private components. The private member banks are used to execute the government's monetary policy. The "stock" they hold in the Federal Reserve cannot be traded, sold, or pledged as collateral.
To imply that the Federal Reserve exists to enrich some select fat cats is either disingenuous or naive.
|
The Federal Reserve is privately owned, chartered by the federal government. It's been that way since its inception. There is, of course, no authorization for it's existence, but since billions are made from it, that's unlikely to cease anytime soon. The federal government could revoke its charter, true, but no one has the courage to do so.
Too bad we're unlikely to have a president with the fortitude to close the fed like Andrew Jackson did to the national bank.