What Is The Federal Reserve Bank? / Educational Video

[FantomasXZ7]

"This [Federal Reserve Act] establishes the most gigantic trust on earth. (…)The financial system has been turned over to the Federal Reserve Board. That Board administers the finance system by authority of a purely profiteering group. The system is Private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people's money (…) From now on, depressions will be scientifically created."

Congressman Charles A. Lindbergh Sr., 1913

[darualid]

lmao @ 8:59

[darualid]

banks are probably like, THANK GOD FOR DEBIT CARDS

[GrubGripe]

Woodrow Wilson gave us this shit?!?! Not really a surprise I guess since he's just your typical liberal moron!

[GrubGripe]

Gauntlet and Pac-Man! Nice!

[Buttrfli555]

and answer me this, why is it when a person with many thousands of dollars or millions wants to with draw HUGE amts of cash they are refused more than 10 thousand at a time.. many banks are doing this now... control control control yes socialism.. still want an answer

[benknefelkamp]

"Computers that... talk to each other!!!!!"

[sweetnloweighteen]

I like how he says that there job is to make sure the economy stays strong. When whenever you print money you weaken the economy

[alecboi84]

END THE FED!!!Corrupt,treasonous bastards stole our gold,our real sound money and replaced it with worthless paper you cant wipe your ass with..They are the reason for the problems in the USA and abroad..Private banksters ripping you off by printing phony money out of thin air with no backing,for a profit...WAKE UP AMERICA,you've been duped once again

[jayduce10]

you make it seem the usa control the federal reserve...who are you fooling...the fucking private bankers owe that shit...and they manage the United States...period..

[urkingod]

all these papers ..... are we mankind crazy ? I mean just for papers ???

[scottsolinko]

WHAT A SCAM!!!!

[mkellyrock]

Sick.

[oldereb38]

The Ponzi scheme federal reserve fraud is mathematically shown to steal from the people and end in national bankruptcy at 3w scribd dot com message 48194264 as Rip Off by Federal Reserve.

[tothemax01]

Lol, I can tell you what it is in less than ONE minute:

A central-planning bureaucracy controlling what the nation uses as money.

Fuck socialism.

[richardwendell]

Checks and balances of recent vintage times has meant total obstructionism by Red Necks who feel "the problem IS government" and that anyone richer than they are is likely smarter and should be running the country. There should be more credit given to pure competence and intelligence - I would much rather bet on a wholly competent Barrack Obama rather than a Sarah Palin for example- no matter how popular she might be. Something to be said for demagoguery - spinning a lie.

[chrismcdonald16602]

@richardwendell A wholly competent Obama omg plz tel me you did not put compatent and Obama together were have you been living the past 2 years he said i want change did we get change no we got a even worse econmy then the one we had befour plus more war omg how can people not see this

[richardwendell]

There are other examples of quasi governmental organizations such as the NASD - you must be a member, but it is more like a coop than a bureau. I think you don't want highly political idealogues running such an important function. But then, why are you so concerned? You have had FR chairmen who have served under Republican and Democratic presidents successfully. They screwed up frequently, but at least not due to some wacked out ideology such as Ron Paul or even Sarah Palin would advocate.

[LthrnZack]

@richardwendell My concern is with government entities that somehow remain in relative obscurity when the need for checks and balnces are in order but that doesn't occur until after the poop has hit the fan. Here's another example: Frannie May and Freddie Mac.

[richardwendell]

Of course I did and I also showed it to all my Economics students - and it is a hard search to sort out all the conspiracy theories to get something objective and not wacky. No wonder our country is ga ga over nut cakes like Ron Paul and Tea Party candidates.

Igorance is bliss apparently.

[LthrnZack]

@richardwendell Watch the part where the narrirator is talking about Why President Woodrow Wilson signed the FEDERAL RESERVE ACT. 1:15-2:25. They are basically saying that the Federal Reserve is under Federal (as in the government) control, aren't they? How am I misunderstanding that?

[SadegoGG]

@LthrnZack

The Federal Reserve is controlled by the government. If you study the organization structure of the Federal Reserve, this will become painfully obvious to you. I recommend you enroll in macroeconomics classes so you can get an unbiased load of information regarding the formation of the Federal Reserve, government controls over the Fed, and the goals of the Federal Reserve.

[SethVandenberg]

@SadegoGG LOL ! Enlighten me ole master on how the FRB is controlled by gov. ? Prior to wasting my time. shall we eliminate the obvious deceptions. Pres selects appointments to the Board of Governors ( BOG ) Senate votes. The FRB as indicated by both Allen Greenspan & Ben Shalom Bernanke INDEPENDENTLY determines monetary policy. Now go for for it grasshopper !

[SadegoGG]

@SethVandenberg

You discussed the control and power the government has over the Federal Reserve. The government appoints/approves the Board of Governors. The Board of Governors collectively (Not just the head) set monetary policy in conjunction with the FOMC (12-member panel can consists of all the Board members, the president of the New York Federal Reserve Bank, and 4 presidents from the other Federal Reserve Banks on a rotating basis.

[SadegoGG]

@SethVandenberg

The presidents are appointed by each Bank's board of directors, pending approval from the Board of Governors (12 USCA §341).)

Thus, all the key monetary policy decisions -- the ones that affect interest rates -- are made by a government agency whose members are selected by the President of the United States and the US Senate. Thus, the fed is controlled by the government. We can also get into budgets, legislation, Congressional goals, etc...but the prior information suffices.

[SethVandenberg]

@SadegoGG To state the FRB is CONTROLLED by our government is at best naive. To equate Control through the mechanism of appointment by the Pres & a Senate vote is deceptive. You write with little passion. Which, at least to me, is indicative of parroting or plagiarism. If your claim is Gov controls the FRB hence OUR best interests are served that's simplistic and sophomoric. Defending the FRB is akin to telling all Americans FU and I shall show you the error of your ways when I return. PROMISE !

[SadegoGG]

@SethVandenberg

The fact the Senate and President vote in and appoint the Board of Governors dictate the governments powers over monetary policy. The government dictates the individuals who set monetary policy, not the member banks. Therefore, it can be concluded even though the Federal Reserve is privately owned, its controlled by the government more than the private for profit banks that own it.

[SadegoGG]

@SethVandenberg

I have not suggested that Congress micro manages every decision the Board of Governors make. That would defeat the whole purpose of having the Fed. However, Congress has set the goals of stability in the financial system, price stability, fighting inflation, full employment, economic growth, interest rate stability and currency stability. These goals were established by the U.S. Congress in the Employment Act of 1946 and the Full Employment and Balanced Growth Act of 1978.

[SethVandenberg]

@SadegoGG Perhaps we can get past the cut and paste responses. You will not find the answer to this question on the FRB website. What is the FRBs FIRST instrument of choice for collateralizing the gov. debt on money lent? There are several methods, however the first is quite telling. My anonymous e mail is glumes90857atmypacksdotnet. My correspondence FROM the FRB will be forwarded to you if you actually care. If you are unable to answer the question I'll assume your knowledge is cursory.Cheers

[SadegoGG]

@SethVandenberg

There are no real assets, public or private, that are specifically pledged to collateralize the debt of the government. The government borrows on its "full faith and credit," which is to say that it borrows as long as everyone thinks it is able to service the debt.

Now, please just come out and say whatever you plan on saying. Its almost impossible for me to interpret your positions if you merely ask a broad question with many possible answers.

[SethVandenberg]

@SadegoGG By law the debt must be collateralized ! And considering I offered you the opportunity to actually READ ( Direct emails from the FRB , with Headers ) I can only assume you have no desire to understand what you can't pull off of a website. If I reiterated, with quotes from the FRBs correspondence, you would simply deny it's validity.

[SethVandenberg]

@SadegoGG " There are no real assets, public or private............. pledged to collateralize the debt of the government " This statement is in total, absolutely untrue. And if you actually

knew ANYTHING about this subject you would be a fool to so boldly claim this nonsense.

You present as being knowledgable, and speak with contemptible authority toward others.

My email addy is still up for all to see ! You can utilize it or continue with your inane prattle.

I don't have the time for this.

[SadegoGG]

@SethVandenberg

Provide the name of the law or a debunk to what you're referring to in your first and second paragraph.. Also, I don't understand what we can do over email that we can't do over private messages on youtube. Otherwise I can't really address your confusion.

Also, I don't attempt to belittle anybody, nor do I think I'm better than anybody. I attempt to make my comments as short and thorough as possible, without wasted text.

[LthrnZack]

@SadegoGG The Fed is a quasi governmental entity. It is operated by private bankers. I don't care if uncle sam appointed them, the fact is they are running the mint press. They just fired it up again for Obama and wall street still tanked. I had economics in grade school and I remember one of my class lessons being about how it's ok to be in debt if you can afford it, that being primarily of the US government. A lot of good it has done us so far :P

[SadegoGG]

@LthrnZack

The Federal Reserve System is sometimes described as a quasi-government agency because it contains elements of both the private sector and of government control. The System has three organization levels: member banks, Federal Reserve Banks, and the Board of Governors. Let's examine each briefly.

Member banks are at the bottom of the organization chart. These are commercial banks and S&Ls who have joined the Federal Reserve System (FRS).

[SadegoGG]

@LthrnZack

By law, all nationally chartered banks must join, and any state chartered bank has the option to join (12 USCA §282). By joining the FRS a member bank is becoming a shareholder -- an owner -- in its regional Federal Reserve Bank. For example, suppose you and I open a new nationally chartered bank in Charlotte, North Carolina. According to the district map, we see that Charlotte is in the Richmond Federal Reserve district,

[SadegoGG]

@LthrnZack

so our new bank will have to become a member of the Richmond Federal Reserve Bank. So, the claim that the "Fed is privately owned" is correct -- each Federal Reserve Bank is owned by private for-profit commercial banks and S&Ls.

Why are member banks -- the owners -- at the bottom of the organization chart? They are at the bottom because unlike the shareholders of a typical corporation such as IBM,

[SadegoGG]

@LthrnZack

member banks have very little power over how their regional Federal Reserve Bank is run. And they have no control at all over monetary policy. Shareholders of IBM elect the company's board of directors who in turn choose the firm's CEO, so they have a collective say on the company's operations.  Member banks also get to select 6 of the 9 directors of their regional Federal Reserve Bank, but these directors control only the Bank's daily operations,

[SadegoGG]

@LthrnZack

not monetary policy which is the most important function of the Federal Reserve System (12 USCA §301 and 12 USCA §302).

At the middle level in the organization chart are the 12 regional Federal Reserve Banks. They have a variety of powers and duties, some of which are:

-Buy and sell government bonds in the secondary markets (open market operations)

-Lend reserves to member banks

-Offer check-clearing services to member and non-member banks

[SadegoGG]

@LthrnZack

-Issue Federal Reserve Notes and collect worn-out ones for destruction

-Enforce reserve requirements and other regulations of the member banks

-Monitor banking and economic activity within their respective district

In terms of monetary policy, the most important power is the first one -- open market operations. Buying government bonds in the secondary markets increases the amount of reserves in the banking system,

[SadegoGG]

@LthrnZack

puts downward pressure on interest rates, and tends to expand the money supply. Selling government bonds does the opposite. This is the monetary policy function that is most often associated with the Fed (What is monetary policy?). However, a Federal Reserve Bank can only employ open market operations with the explicit approval of the Board of Governors (12 USCA §355).

Finally, at the top of the structure chart is the Board of Governors.

[SadegoGG]

@LthrnZack

The Board is a 7-member panel who is appointed by the President of the United States and confirmed by the Senate (12 USCA §241). The Board's current Chair is Ben Bernanke. Among its responsibilities:

-Determine open market policies

-Set the required reserve ratio for member banks

-Set the Discount Rate

-Deciding how much new currency to print

-Monitor the health of the U.S. economy

-Report to Congress periodically on the state of the U.S. economy

[SadegoGG]

@LthrnZack

It's single most important duty is deciding its open market policy, that is, whether it should order the Federal Reserve Banks to buy or sell government bonds, and if so, how much. This decision is made in conjunction with the Federal Open Market Committee. The FOMC is a 12-member panel can consists of all the Board members, the president of the New York Federal Reserve Bank, and 4 presidents from the other Federal Reserve Banks on a rotating basis.

[SadegoGG]

@LthrnZack

The presidents are appointed by each Bank's board of directors, pending approval from the Board of Governors (12 USCA §341).

Thus, all the key monetary policy decisions -- the ones that affect interest rates -- are made by a government agency whose members are selected by the President of the United States. The Fed may be privately owned, but it is controlled by the government.

[LthrnZack]

@SadegoGG Just because the government can tell the Fed to make it rain doesn't mean that they are in control. In other words, they may have the power to make such decisions, but they are loosing control of the situation.

[SadegoGG]

@LthrnZack

Government oversight, control, and transparency over the Federal Reserve has increased dramatically since 1913 and throughout the entire history of the Fed. Therefore, I consider your last statement completely false. Moreover, the Federal Reserve takes the 6 goals of full employment, stability in the financial system, price stability, economic growth, stable interest rates, and currency stability. These goals come from Congress, and the Federal Reserve operates based on them.

[LthrnZack]

@SadegoGG Riddle me this, why did the government just take another big nasty shit all over their own standards? And yes, I am aware of the the checks and balances between Congress and the Fed, wooptefriggindoooo! You can sight all the facts to your liking, seems like your doing a bit of copy and paste anyway which is a big red flag to me. The Fed is privately owned and have never received any audit by Congress.

[SadegoGG]

@LthrnZack

The Federal Reserve is audited annually by the GAO and private accounting firms. Information regarding the audits is provided in the FRB Annual Reports and are readily available to Congress. The private owners (member banks) of the federal reserve don't have any power over setting monetary policy and have minimal power over how the Federal Reserve banks are run (They nominate 6 of the 9 Board of Directors). The FRB is directly decided by the government, and the FOMC is indirectly.

[LthrnZack]

@SadegoGG I don't give a damn about skim and scam, when they hopefully pass HR459 S202 then the Fed will have a freggin audit on their hands for the first time.

[SadegoGG]

@LthrnZack

The audits of the Federal Reserve are extremely comprehensive. In fact, there are only 4 main restrictions to GAO audits (31 USCA §714):

(1) transactions for or with a foreign central bank, government of a foreign country, or nonprivate international financing organization;

(2) deliberations, decisions, or actions on monetary policy matters, including discount window operations, reserves of member banks, securities credit, interest on deposits, open market operations;

[SadegoGG]

@LthrnZack

(3) transactions made under the direction of the Federal Open Market Committee; or

(4) a part of a discussion or communication among or between members of the Board of Governors and officers and employees of the Federal Reserve System related to items.

In 1993 Wayne D. Angell, then a member of the Board of Governors, submitted testimony before a House subcommittee on the reasons for the restrictions on GAO access. He commented,

[SadegoGG]

@LthrnZack

"By excluding these areas, the Act attempts to balance the need for public accountability of the Federal Reserve through GAO audits against the need to insulate the central bank's monetary policy functions from short-term political pressures and to ensure that foreign central banks and governmental entities can transact business in the U.S. financial markets through the Federal Reserve on a confidential basis."

[SadegoGG]

@LthrnZack

In reference to a bill that would lift the constraints placed on the GAO's audit authority over the Federal Reserve, Angell stated,

"The benefits, if any, of broadening the GAO's authority into the areas of monetary policy and transactions with foreign official entities would be small. With regard to purely financial audits, the Federal Reserve Act already requires that the Board conduct an annual financial examination of each Reserve Bank...

[SadegoGG]

@LthrnZack

The process of conducting financial audits is reviewed by a public accounting firm to confirm that the methods and techniques being employed are effective and that the program follows generally accepted auditing standards...Further, a private accounting firm audits the Board's balance sheet...Finally, and more broadly, the Congress has, in effect, mandated its own review of monetary policy by requiring semiannual reports to

[SadegoGG]

@LthrnZack

Congress on monetary policy under the Full Employment and Balanced Growth Act of 1978...In addition, there is a vast and continuously updated body of literature and expert evaluation of U.S. monetary policy. In this environment, the contribution that a GAO audit would make to the active public discussion of the conduct of monetary policy is not likely to outweigh the disadvantages of expanding GAO audit authority in this area."

[LthrnZack]

@SadegoGG And there in squats the toad. These are the restrictions that prevent a realistic audit. Like WOW man, you really made your point :P

[SadegoGG]

@LthrnZack

Again, you support your outrageous claims with nothing to back them up. You don't define a 'realistic audit' or anything else. You also didn't address the issue Wayne Angell brought up. Because of the lack of depth in your arguments, I'm going to presume you have no idea what you're talking about and you suspended logic and thinking in the formulation of your arguments.

[LthrnZack]

@SadegoGG Wayne Angell can suck my left toe. Of coarse they don't want us to know how much of our currency is lent to other nations. Let me PM you some URLs.

[SadegoGG]

@LthrnZack

Thanks for PMing me to conspiracy theory websites and not establishing anything to formulate a position on the matter. I'll PM you back using credible websites.

[SadegoGG]

@LthrnZack

For more on GAO restrictions, you can search the Government Printing Office website for GAO report T-GGD-94-44, entitled "Federal Reserve System Audits: Restrictions on GAO's Access."

[richardwendell]

@LthrnZack Yea, that's what we need - politicians dictating monetary policy. Are you nuts or just ignorant?

[LthrnZack]

@richardwendell Did you even bother to watch the video?

[DashJrEX]

...:P I work at the Fed...and the pay is so awesome... :P

[PurposeOnEarth]

old and unfit bills are shredded. lol.

[howser12]

So money comes from... no where? I don't think I trust this system.

[blowbackinevitable]

there is no authority for a central banks in the constitution , the bank runs happened in 1907 because of bankers made a margin calls (demand of payment in a 24 hour period)at the same time the bankers creating panic about reserves in personal accounts . dont believe me go find your own answers. the crash of 1907 was just getting usa ready for a federal reserve greatest scam of the world ever.

[richardwendell]

@blowbackinevitable What a cook!!

[spongemike91]

I remember seeing a video like this in my economics class, but I forgot what it was called. It was hosted by a guy in a suit and, I think, glasses. The weird thing was that an animated chicken or rooster appeared out of nowhere and walked past the host. If you know what I'm talking about, please let me know what it was so I can see it again. Thanks!

[richardwendell]

@spongemike91 That was "The Fed Today" and is still available

[TTTopGun]

Computers make money a virtual thing i.e just a number on a paper which means 2 or more banks in cahoots can invent new money without needing the federal reserve.

Vice versa say a customer at Bank 1 takes out a home loan destined for another customer account in Bank 2. If the 2 banks are in cahoots, the sum can show up as a deposit generated by computer no real money or debt need exist but note customer interest is still paid, a bank can print as much money as it needs even if it don't have it.

[underriot]

"9 out of every 10 dollars spent by Americans is spent by a check"

LOL, gotta love the 80's.

[ECTBWHO]

Thats it..