how the federal reserve works

this is a basic video of how the federal reserve works; it's a bit dated (1999) and the eagle animation is kind of hokey, but it gets the general info across; the video is narrated by respected journalist, charles osgood, who graduated from fordham university in 1954 with a degree in economics

for questions about who owns the federal reserve banks, how it's funded, overseen and audited, click the following link:

http://www.federalreserve.gov/generalinfo/faq/faqfrs.htm#5

here's a link to federal reserve audits:

http://www.federalreserve.gov/boarddocs/rptcongress/default.htm

Category:

News & Politics

Tags:

• federal
• reserve
• banking
• system
• independent
• government
• owns
• private
• banks
• bernanke
• president
• obama
• congress
• senate
• audit
• the
• fed
• ron
• paul
• conspiracy
• nut
• case
• 1913
• act
• gold
• standard
• deposits
• loans
• money
• check
• credit
• interest
• rate
• free
• market
• capitalism
• fomc
• abolish
• schiff
• movie
• tv
• recession
• depression
• inflation
• deflation
• history
• economy
• documentary

[fhab525]

what was the condition of america before the fed in 1913 ?...i keep hearing they create money out of ''nothing'' what does that mean ?...and what would change if the fed were to be abolished tomorrow?..how is paying income tax bad when we get that money back during tax season and it goes to build the country anyway?..yes ima novice to this subject need some elementary answeres

[sfiorare]

@fhab525 - the fed was created because of the 'panic of 1907'

google: "Historical Beginnings... The Federal Reserve (2010 edition)"

it's a good online source for question about fed history

for current info, google:

"FRB: The Federal Reserve System Purposes and Functions"

[Mr420Panda]

@fhab525 you should look up Zeitgeist Fed Reserve System. the money is created out of a loan and new money is based off of existing money, so when ever they make new money it takes value away from the money you already have. You should look up Abraham Lincoln's Greenback it's why the north won the civil war and is a possibility of an alternative to the fed. Sadly it's also why he got shot. JFK was trying to shut down the Fed too! But we all know what happened to him.

[sfiorare]

@Mr420Panda - you should get a clue

i got an advanced degree in economics decades ago and have managed my own companies ever since

what grade are you in?

Kennedy wrote executive order 11110 to phase out silver certificate currency, not to issue more of it. Records show Kennedy and the Federal Reserve were almost always in agreement on policy matters. He even signed legislation to give the Fed more authority to issue currency.

[killthespyder]

I love the little Eagle animation! So cute! Oh wait! I get it now! An Eagle is symbolic of America, and so this "Federal Reserve" is entirely part of our natural government and Republic, and is indeed, to "instill confidence in our monetary and economic system". I bet you that the Founding Fathers really loved and supported the idea of a central bank. And even more, one supported by, and profited from private entities. Great to know this thing is working to protect us :) Yay Fed!!

[sfiorare]

@killthespyder - president washington signed into law the legislation to charter the first bank of the united states, the country's first central bank

you really ought to learn a little about history before you start spouting off ignorant propaganda and misinformation

[Jayc2400]

@tBusket The Feds don't print money, the treasury does. The job the Fed is suppose to do is to keep the value of the dollar with nothing to fall back on.

[MAVDAACE]

@fhab525 printing "money out of nothing" means the money isnt backed by something that makes it secure which prevents its value from dropping. Also, on the income tax issue you need to check very closely because you DO NOT get 100% of that money back. You dont even get 80%. and the fed created in 1913 wasnt the first fed bank but they were always dismantled due to their inability to insure economic security. there were 2 more before the current one.

[soushi8]

ouch my head hurts cuz of the sound lol..



[3nasacova]

@sfiorare You have advanced degrees in economics? So you belong to the same group of people who got us into this godforsaken mess.

[tBusket]

@fhab525 Income tax does not pay for anything, as much as government wants you to believe it does, it doesn't! It pays the interest on the debt our government/ we the people owe to the fed reserve. Fed Res prints fancy ink on rectangular paper then loans that paper to congress to be used as our national currency. It costs $0.20 to print a bill then loaned at face value 1,5,10,20,50,100, plus interest. How is the debt/interest ever paid when the only source for more money is the Fed who loans it?

[tBusket]

@fhab525 America prior to 1913 was extremely prosperous. Debt free wealth was the standard! International bankers (Warburgs, Rothschilds, Rockefeller's, etc) recognized wealth that could be extracted from this booming nation. They created the bank run in 1907, then drafted a crooked banking system themselves, manipulating the public into believing it would solve the bank runs. Legislation was given to corrupt insiders in Washington who passed the law while most reps were home for Christmas.

[j12torts]

thats just how the system works. It was created out of necessity. We are inherently a slave because we are born to go to school, finish school, get a job, get loans and mortgages, work more and die. You are at the bottom of the food chain.

if you wanna be free, make your own business. be on top of the food chain

[cscarnage]

Nothing like private banks printing money and loaning it to the government at interest.

Sure is a great system. For the Jews.

[5454gi]

@sfiorare and morgan created this panic deliberately for the banking cartels and for profit by not renewing the loans

[5454gi]

i agree exept the fact that the fed wants to stabilize the economy she wands to inflate and deflate the us dollar for privet investors to invest there money in to this and still as too mach money