Spiritual Forum

By Anna Lviv

Does the U.S. have a central bank? Yes, it is the Federal Reserve System (FRS), because it prints money and set interest rates. Can I call the Fed a central bank? No, because it is a private institution that is not subordinate to the state.

During the election, the economy becomes the topic number one. However, instead of blaming Republicans or Democrats, it is necessary to think about the role the Fed played in this situation. In fact, the Fed is now in more power than any of the branches of government. And as anyone in the United States .

1. The Fed - a private enterprise

The Fed is not a government agency. This is a privately owned central bank. The enterprise owns 12 banks within the Federal Reserve system. But we do not know this because the banks never disclosed this.

Management Systems are in the open about their independence. For example; In 2010 during the court proceedings between the agency and the Fed's, Bloomberg said that "there is a public institution," and therefore not subject to FOIA.

So, who also owns the Fed? Officially, the 12 Federal Reserve Banks established by Congress, but are organized as a private corporation. Thus, the Reserve Banks issue shares. However, the latter differ significantly from these shares on the stock exchanges. Reserve Banks are not working for profit. In addition, possession of a certain number of these actions is a prerequisite for participation in the System. Stocks do not necessarily sell or exchange, they offer a steady income - 6% per annum.

Some of the investments are made by foreign governments. So we can say that the Fed is partly owned by other states.

2. The Fed - to create a perpetual motion machine of government debt.

The more money there is in the U.S., the greater their debt. If the government needs money, it turns to the Fed. The government gives the Fed treasuries, in response Federal Reserve notes are received (ie, dollars). Usually this process is electronic.

How did the Fed take the money? Nowhere, it simply prints.

It turns out that the U.S. currency is not even owned by the state (after all, they released a private corporation). Moreover, the government allows the Fed to create money out of thin air and then takes them.

What's more going on with treasuries? They are sold. And the interest on these bonds fall on the shoulders of ordinary Americans. In the fiscal year 2011 the Americans had to pay for $454 billion and this is only the interest on the debt.

June 1, 1914 (after a few months after the creation of the Fed), the U.S. national debt was $ 2.9 billion, he is now a 5-thousand times more. And the scandal with the ceiling of this index may again reach the headlines, after all, the U.S. treasury is expected before the end of this year to reach the ceiling States again.

3. Fed devalues the dollar

Since 1900, the U.S. dollar has lost 96.2% of its value. Major losses began in 1913, after the creation of the Fed. This process is quite obvious. The money supply grows at a constant production, the cost of one dollar is falling.

A side effect of the ongoing issue - inflation - is gradually eating up the country's economy. Ben Bernanke announced inflation target size as 2% per annum. A little later, the Committee on the Federal Reserve Open Market, said that in the next 20 years they need to devalue the dollar by 33%. It is possible to achieve a greater rate if inflation exceeds 2%.

4. The Fed can save any company at any price

Assistance to banks and automakers from Congress aroused a storm of discontent among Americans. But not everyone knows that the Fed will also help banks, with much larger sums. Due to the very limited testing, approved by Congress, it became known that the secret loans amounted to trillions of dollars. To be precise, $16.1 trillion for the period from 1 December 2007 to 21 July 2010. At the same time hundreds of billions went to the rescue of foreign banks. In addition, the Fed contributed to the giants of Wall Street to manage a huge amount of these loans. This is an additional $659.4 million

Recipients of assistance to the Federal Reserve

Citigroup - $ 2.513 trillion, Morgan Stanley - $ 2.041 trillion, Merrill Lynch - $ 1.949 trillion, Bank of America - $ 1.344 trillion, Barclays PLC - $ 868 billion, Bear Sterns - $ 853 billion, Goldman Sachs - $ 814 billion, Royal Bank of Scotland - $ 541 billion, JP Morgan Chase - $ 391 billion, Deutsche Bank - $ 354 billion, UBS - $ 287 billion, Credit Suisse - $ 262 billion, Lehman Brothers - $ 183 billion, Bank of Scotland - $ 181 billion, BNP Paribas - $ 175 billion, Wells Fargo - $ 159 billion, Dexia - $ 159 billion, Wachovia - $ 142 billion, Dresdner Bank - $ 135 billion, Societe Generale - $ 124 billion, all the rest - $ 2,639 trillion.

5. The Fed pays banks so that they do not take the money in the market

Reserve came up with some techniques that allow it to protect American banks.

Section 128 of Law 2008 on emergency economic stabilization (better known as the Paulson plan) allows the Fed to pay interest for the U.S. banks that are left in storage in the system part of the "excess reserves." Thus, financial institutions can make money, completely fend for themselves against the risks. The amount of such reserves has grown from virtually zero in 2008 to $ 1.5 trillion today.

Another ploy began operations carry trade with the public debt. The Fed lends to banks cash under a minute percentage, to which they are buying it as Treasuries. The higher bond yields, the greater the income of banks. Again, almost no risk.

6. The Fed provides ideal conditions for the creation of financial bubbles

If not for Fed policy on interest rates, the crisis in real estate may be avoided. Then the rates were at zero, which made loans fabulously profitable in the eyes of the population. After the crisis, there is much talked about this error. And realize things are there again: a key U.S. interest rate is at the same levels as in 2008

7. Federal Reserve Banks operate on Wall Street

The only permanent representative to the Federal Open Market Committee is the representative from New York, while the remaining participants  are every 2-3 years waiting for the rotation. The former head of the Federal Bank of New York Timothy Geithner is now the Minister of Finance and the main contender to the head of the World Bank. The Bank of New York has always been an important participant in the system, and the New York Bank is run by Wall Street.

8. Income tax was introduced immediately after the Fed

February 3, 1913 was adopted on 16 amendment to the constitution, introduced income tax. In the same year a law was passed the Federal Reserve.

On February 3rd 1913, 16 corrections to the constitution have been accepted, introducing income tax. The law on the Federal reserve has been passed in the same year.

9. The current Fed Chairman Ben Bernanke is monstrously incompetent

Many of the media creates the image of Bernanke being a great economist, but if you remember some of his statements, it becomes clear that he is not.

In 2005, Bernanke said that derivatives pose no threat to financial markets: "Derivatives are completely safe, because they use a very experienced financial institutions, which also has an incentive to use them properly." In 2006, he promised that real estate prices continue to rise, "Real estate markets cool down a bit. We expect a modest downturn, prices will continue to grow. " The statement from 2008: "The Fed does not expect a recession in the near future." A few months before the collapse of Fannie Mae and Freddie Mac, Bernanke insisted that they are absolutely safe, "Enterprises, State-funded, well-capitalized. No threat of collapse for them there. "

To say all this could either people do not understand the economy, or has the coming collapse of their own species. In this case, despite all the failures Bernanke made, Barack Obama still nominated him to head the Fed.

10. The Fed has become too all-powerful

The first article of the U.S. Constitution reads: "Congress shall coin money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures." In fact, this function is performed by the Fed.

Federal Reserve - the most undemocratic institution the United States. It is even called the "fourth branch of the government." At the same responsibility to the people it is much less. Americans do not elect leaders for the Fed. He was appointed by the president, but he is in this sense also not clear, because he needed money for the next election campaign, which can pay the giants of Wall Street. After all, the President is elected every four years, and the head of the Fed only once in 14 years.

Source: mirpolitiki.net / vestifinance.ru