Comment by prometheus76
3 years ago
The Federal Reserve is a private company with a chair that is chosen by the President of the US with advice and consent from the Senate, and serves a four-year term. There is no term limitation for this office.
The reason the US government has a national debt is because that debt is owed to the Federal Reserve, which is a private bank that loans the US government money and that sets the US monetary policy.
>>Federal Reserve is a private company with a chair that is chosen by the President of the US with advice and consent from the Senate, and serves a four-year term
Sorry but no... You can not be a "Private Company" and have your leadership appointed by the President like any other Government Agency
The Fed is a Government Agency,
>>The reason the US government has a national debt is because that debt is owed to the Federal Reserve,
Incorrect
Some of the Debt is owned by a Federal Reserve, more recently as no one want to buy US Debt any more but....
>>which is a private bank that loans the US government money
Again FALSE....
The Federal Reserve can not Loan the US Government anything
The US Dept of Treasury issues Bonds which are sold on the Open Market, 3rd parties then Buy these Bonds, then the Fed Buys them
The Fed can not legally buy Bonds directly from the US Government. How do you think Black Rock got to be do big...
The Fed is a contractor with pomp and circumstance to make it appear different. Any private group charter can require their club leader to be approved by the Pres. and the Pres. may or may not play along.
The Fed is the only entity in existence that can _create_ dollars out of thin air.
US Treasury is responsible for the printed paper dollars, but only the Fed can create "digital" ones.
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you may have an analogy if your "Any private group charter" was established by an act of Congress, where by the Appointment of the leader was required by law to be done by the president, with the advice and consent of congress
Show me "Any private group charter" that was established by such an act of congress and i will agree with you.
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>The reason the US government has a national debt is because that debt is owed to the Federal Reserve, which is a private bank that loans the US government money and that sets the US monetary policy.
I'm pretty sure every holder of US Treasuries (including me) is owed money by the US government.
Not only that but the cash swapped for bonds is also a liability of the government, so it is just swapping one liability for another.
What we call government debt is just an operational vestige.
We are both correct.
... https://www.thebalancemoney.com/who-owns-the-u-s-national-de...
public / private is a false dilemma
trusts, foundations, and a host of other entities are ‘orphaned’ entities and is essentially a third category which is more accurate for the Federal Reserve as well
The Board of Governors is a public entity with an appointment, and the rest of the entity has a rotation of members and pretty full autonomy on how it runs on the inside at the employee level
It's a club funded by interest rate skimming with opaque structure and reporting requirements which don't conform to typical reporting requirements. CEO of Silicon Valley Bank was on BoD of SFO branch, which failed to adequately regulate SVB.
https://www.svb.com/news/company-news/svb-financial-group-ce...
"SVB Financial Group CEO Elected to the Board of Directors of the Federal Reserve Bank of San Francisco"
why do you think it was a regulatory failure? it's not the Fed's job to make sure every bank has a sane business plan and rock solid conservative riskless strategy.
its job is to make sure the entire system can take the stress of failing banks.
the FDIC did its job too.
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Did the Fed own significant treasuries prior to QE?
None of what you just said is true, it’s libertarian propaganda.