Comment by phpisthebest
3 years ago
>>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.
This is a huge but common misunderstanding.
Every time a bank makes a loan, the dollars are "created out of thin air", and slowly "destroyed" as the loan is repaid.
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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.
Yes, Congress passed a bill 110 years ago to give a private group broad authorities. The third central bank of the USA.