The US Central Bank is Run by Private Individuals: How America's Whole Economy ended up in the hands of a wealthy group
The US Central Bank, also known as the US Federal Reserve System (FRS), is shrouded in conspiracy theories and myths. He is considered almost the focus of the world's evil. What is so sinister about it and how the entire US economy ended up in the hands of the American rich, the publication found out VC.RU.
The Central Bank of America, better known as the Federal Reserve System, was created much later than the central banks of the West.
The prototype of the Fed in 1791 was the First Bank of the United States, which was located in Philadelphia. The bank was tasked with paying off the government debt that arose during the Revolutionary War and issuing the national currency of the United States. For twenty years, the bank planned to form a strong financial system and organize the emission of the dollar. Initially, the bank was half state-owned; assets belonged to private individuals too. On suspicion of actions contrary to the interests of their country, the bank closed in 1811.
In 1816, the second bank, Second Bank of the United States, took over these functions. But it also existed for 20 years. After its liquidation, there was no longer any organization in America to fulfill the role of the Central Bank.
From 1873 to 1907, there were 4 financial crises in the United States, and this was the reason for the creation of a centralized financial system. The Americans, looking at the experience of European countries, were not very happy about this innovation. In Europe, such ventures were a failure due to uncontrolled waste of budgetary funds.
Jekyll Island, acquired by the community of millionaires in 1886, is considered to be the place where the FRS was founded. Their private club was established there. The most influential members of the club - Morgan, Pulitzer, Rothschilds and others had access there. They were the owners of most of the world's financial wealth. They developed a concept that later became the Federal Reserve System.
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Its creator was Paul Warburg, the head of the bank Kuhn, Loeb and Co, a member of the Rothschild clan.
In 1912, the National Monetary Commission issued a report on the need for a US central bank. And in 1913, Congress passed a law that created the Federal Reserve System. President Woodrow Wilson signed the Federal Reserve Act on December 23, 1913.
Later, normative legal acts were developed and adopted, which designated its activities.
Since 1942, the island was acquired by the state of Georgia, and the club on the island was closed. Today it is a popular tourist destination.
From the very moment of its foundation, the actions of the Fed were fully consistent with the country's financial and economic policies.
The system fulfills the following objectives as defined by the Federal Reserve Act:
- Implements the plan of the Central Bank of the state
- Maintains a balance between commercial structures and social spheres of the country
- Supervises the banking system of the country, and also protects the interests of depositors and borrowers
- It issues the dollar - the internal currency of the United States.
- Carries out coordination, control and management of the financial market
- Provides custody services to the US government and other international institutions
- Facilitates the functioning of the system of both domestic and international payments
- Solves liquidity issues at local levels and provides loans to credit companies.
The current functions of the FRS have undergone a number of changes, to which were added:
- Implementation of the state monetary policy
- Stabilization of prices and employment of the population
- Regulation and control of banks 'activities, protection of clients' rights
- Supporting the stability of the financial system and suppressing risks in the financial market
- Providing selected financial services to the US government, individuals and financial institutions, and foreign public institutions through the management of the government's payment transfer system.
The Federal Reserve acts as the Central Bank of the United States, although the owners of the organization are individuals, not the state - it directs the activities of the Fed by appointing managers. They are appointed by the President after approval by the Senate.
The structure of the Fed differs from that of most central banks in the world. Decision-making is the responsibility of the twelve regional members of the system, who can control interest rates. This determines the growth trends of the economy, having a significant impact on its development.
The Federal Reserve System includes:
- Central Board of Governors in Washington DC
- Twelve non-government Federal Reserve Banks. These corporations are located in major cities such as New York, Philadelphia, Boston, Cleveland, Atlanta, Richmond, Chicago, St. Louis, Kansas City, Minneapolis, San Francisco, and Dallas. Private banks are the shareholders.
- Open Market Operations Committee.
Twelve Federal Reserve Banks have their own letter and number designations. Each bank is assigned a name, which includes the name of the city where the bank is located. Regions are labeled alphabetically in a list. The departments of all federal banks include nine people, which are divided into classes "A", "B" and "C" with three members each.
Class "A" includes elected representatives of the branch itself, class "B" - individuals who do not belong to the banking sector, and "C" - employees appointed by the Federal Reserve Board.
Due to the fact that banks that conducted their operations in the United States were supposed to become part of the Fed, rumors were born that the central bank, which is controlled by private individuals, defends its own interests, not the state. This theory is described in his book Murray Rothbard "The Case Against the Fed".
However, the main difference between private and federal reserve banks is the fact that the operations carried out by the latter are not aimed at making a profit.
Who Really Owns the Fed
The Federal Reserve System is run by private owners. These are mainly foreign bankers. In 1913, America was surrendered by Congress to the Federal Reserve's debt slavery. Now she has the right to issue dollars and acquired control over the economic system of the States.
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The main shareholders of the Federal Reserve System own more than two hundred thousand of its shares, 65% of which are owned by foreign citizens, and the rest of their share is distributed among the following banks:
- National City Bank - 30 thousand shares
- Bank Chase National (now Chase Manhattan) - 6 thousand shares
- National Bank of Commerce (today Morgan Guaranty Trust) - 21 thousand shares
- First National Bank - 15 thousand shares.
The first two banks are owned by the Rockefeller family, the other two are owned by the Morgan family. Thus, the number of shares held together by the Rockefellers is equal to the number of shares owned by the Morgan - 36 thousand shares each. According to the Federal Reserve Act of 1913, the names of the owners of the bank are not subject to disclosure. However, McMaster, publisher of The Reaper, has some information. According to the information provided by him, the following structures own a controlling stake:
- Rothschild banks in London and Berlin
- bank Lazard Brothers in Paris
- Israel Moses Sieff banks in Italy
- Bank Warburg, in Germany and Amsterdam
- Kuhn Loeb Bank in New York
- Lehman Brothers Bank in New York
- Goldman Sachs Bank in New York
- bank controlled by Rockefeller Chase Manhattan in New York.
Fed related myths
Myth 1. The Fed's involvement in the Kennedy assassination
One of the main myths about the Fed is associated with the assassination of US President John F. Kennedy in 1963.
After the signing of the decree №11110, the status of the FRS was allegedly changed. The Treasury Department received the right to issue money equivalent to their silver stock (the so-called silver certificates). That is, there was no need for the Fed to return the debt. According to this legend, the head of state of the United States was killed.
In reality, the decree did not contain anything significant, it only expanded the capabilities of the Fed.
The Treasury Department had previously been eligible for the limited issue of money. The fact is that the national currency issued by the relevant department has serial numbers that differ from the Fed banknotes. Series numbers were indicated in different colors. The Treasury was in charge of issuing one and two dollar bills, unlike the Fed, which had no right to do so.
Myth 2. The Federal Reserve is a private company
The FRS consists of a Board of Governors, which is the federal government. This system can issue shares, which is why many believe that it is managed by shareholders, which means it is a joint stock company. However, only an American bank can act as a shareholder in the Fed. Monetary policy is controlled exclusively by the state.
Myth 3. The Federal Reserve prints money
Directly printing is handled by the Bureau of Engraving at the Department of Finance. The Fed buys ready-made cash from them at the cost of printing. The total value of this money should be equivalent to the value of the assets held by the Federal Reserve. The amounts of cash and non-cash currencies in the Fed's money turnover are regularly published. Everyone can check it out.
Myth 4. The owners of the Fed are classified
The SEC requires companies that trade in shares to report major shareholders annually. On the website of any regional bank, you can familiarize yourself with the list of shareholders and find out if this bank is a shareholder of the Federal Reserve System.
Myth 5. The Fed is not controlled by the state
Each year, the Fed reports to the Speaker of the US House of Representatives, and twice a year reports on its activities to the Banking Committee in Congress. These reports are publicly available. The US Comptroller General is also auditing the Fed in accordance with the 1978 law.
So, the Federal Reserve System is a specially created structure to perform the functions of a central bank. The Fed controls the US commercial banking system. Despite the many myths and rumors surrounding the Fed, it is clear that this is not a secret government at all. At the same time, this organization operates according to its own laws. Its activities are under the control of the Senate and the President. They are the ones who set the policy for the Fed.
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