Most Americans go through their lives thinking the Federal Reserve is just yet another governmental institution, no more interesting than the DMV or Post Office.
So, to them, it makes sense that the Federal Reserve’s website can be found at FederalReserve.gov.
They’re simply not interested that the Federal Reserve is a private entity. Who owns it? Nobody really knows, except the owners I presume. Here’s a possible list. These banks received considerable bailouts in 2008 from the Federal Reserve by way of the American taxpayer:
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 Other Borrowers” – $2.639 trillion
Still, even though that for the past five years, the economy has been the number one issue on voters mind, they simply don’t ask questions about the Federal Reserve.
If they did, they would learn quickly that the Federal Reserve is privately owned, for when the Federal Reserve was defending itself against a Bloomberg request for information under the Freedom of Information Act, the Fed stated in court that it was “not an agency” of the federal government.
And so, it didn’t have to adhere to any Freedom Of Information requests.
Just go to the Federal Reserve website and read for yourself.
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.
Not only is the Federal Reserve private, but foreign governments even own a percentage in the Federal Reserve System, and they make good money of the American people.
As Thomas Edison was once quoted in the New York Times:
That is to say, under the old way any time we wish to add to the national wealth we are compelled to add to the national debt.
Now, that is what Henry Ford wants to prevent. He thinks it is stupid, and so do I, that for the loan of $30,000,000 of their own money the people of the United States should be compelled to pay $66,000,000 — that is what it amounts to, with interest. People who will not turn a shovelful of dirt nor contribute a pound of material will collect more money from the United States than will the people who supply the material and do the work. That is the terrible thing about interest. In all our great bond issues the interest is always greater than the principal. All of the great public works cost more than twice the actual cost, on that account. Under the present system of doing business we simply add 120 to 150 per cent, to the stated cost.
But here is the point: If our nation can issue a dollar bond, it can issue a dollar bill. The element that makes the bond good makes the bill good.
But, that is what the American people got. And the Federal Reserve got a “.gov” domain.
Thomas Jefferson once declared that if he could add just one more amendment to the U.S. Constitution it would be a ban on all government borrowing….
I wish it were possible to obtain a single amendment to our Constitution. I would be willing to depend on that alone for the reduction of the administration of our government to the genuine principles of its Constitution; I mean an additional article, taking from the federal government the power of borrowing.
Nevertheless, a different reality came to pass. And today this reality is encapsulated at FederalReserve…gov.