Real Estate Forums

Jared · 03-31-2008, 04:13 PM

Chatting for nearly an hour with a Realtor friend of mine we seem to have a major disagreement about money in terms of who actually owns it.

Its my belief that the federal reserve is NOT a government agency even though its controlled in part by congress. Its my understanding of history that the federal reserve is no more federal government than federal express and in fact if the US Postal Office were to be handed over to private entities as once suggested you would have a clear picture of what the federal reserve is.

I pose this question then; Who owns the federal reserve?

~ Jared

NealRM · 03-31-2008, 07:04 PM

Straight from the fed site

Quote:

Who owns the Federal Reserve?

The Federal Reserve System is not "owned" by anyone and is not a private, profit-making institution. Instead, it is an independent entity within the government, having both public purposes and private aspects.

As the nation's central bank, the Federal Reserve derives its authority from the U.S. Congress. It is considered an independent central bank because its decisions do not have to be ratified by the President or anyone else in the executive or legislative branch of government, it does not receive funding appropriated by Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms. However, the Federal Reserve is subject to oversight by Congress, which periodically reviews its activities and can alter its responsibilities by statute. Also, the Federal Reserve must work within the framework of the overall objectives of economic and financial policy established by the government. Therefore, the Federal Reserve can be more accurately described as "independent within the government."

The twelve regional Federal Reserve Banks, which were established by Congress as the operating arms of the nation's central banking system, are organized much like private corporations--possibly leading to some confusion about "ownership." For example, the Reserve Banks issue shares of stock to member banks. However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year.

So it appear you are partially right.

Now if you are talking about "Money", as in paper money that is different. Paper money is issued by the treasury department.

Jared · 03-31-2008, 07:13 PM

Yeah I was watching the discovery channel a few nights ago and the show essentially said that the Federal Reserve is private banks that not only charge the federal reserve for printing money but also charge the tax payer a percentage for the right to use "Their Banking" system. How strange.

San Diego Real Estate · 05-22-2008, 07:20 AM

Now isn't that interesting we are being charged for using our money...

As the world turns seems like the more you know the more you don't know!

I'm not as concerned about our Federal Reserve as I am about these Outrageous Oil Companies........OUCH I went to fill up yesterday and the pump cut me off at 100 even though my car was not full!