Reply #14: For crying out loud....

[SDuderstadt]

read the ENTIRE link. In case you can't, I'll excerpt the relevant sections. But before I do that, federal law requires that the Federal Reserve return 95% of its earnings (interest and other earnings minus operating expenses) to the US Treasury (in other words, us). Does that sound like a private bank to you??

From the Federal Reserve Act (Part of the United States Code):

http://www4.law.cornell.edu/uscode/12/ch3.html

TITLE 12 > CHAPTER 3 > SUBCHAPTER VI § 290. Use of earnings transferred to Treasury

The net earnings derived by the United States from Federal reserve banks shall, in the discretion of the Secretary, be used to supplement the gold reserve held against outstanding United States notes, or shall be applied to the reduction of the outstanding bonded indebtedness of the United States under regulations to be prescribed by the Secretary of the Treasury. Should a Federal reserve bank be dissolved or go into liquidation, any surplus remaining, after the payment of all debts, dividend requirements as hereinbefore provided, and the par value of the stock, shall be paid to and become the property of the United States and shall be similarly applied.



The members of the Board of Governors of the Federal Reserve Bank (including its chairman) are appointed by the President and require confirmation by the US Senate. Again, does that sound like a PRIVATE bank to you???


From Wikipedia (http://en.wikipedia.org/wiki/Federal_Reserve_Banks)

Balance between private banks and responsibility of government

Private banks are regulated by the government. This means that there are some restrictions on what private banks are allowed to do. The Federal Reserve is the specific part of government that regulates the private banks.


Independent within government

The system was set up so that special interests in congress or the presidency would not abuse the power to create money or abuse the government regulations over banks. In order to achieve this, the Federal Reserve System was organized to be separate from the 3 branches of government. This is supposed to make it impartial to special interests so that it could make policies that are good for the people of the United States and so that it is fair to everyone. The members of its Board of Governors are appointed for long, staggered terms, limiting the influence of day-to-day political considerations.<20> The Fed’s unique structure also provides internal checks and balances, ensuring that its decisions and operations are not dominated by any one part of the system. The system is organized much like private corporations so that it can generate revenue independently without the need for congress. Since it was designed to be independent while also remaining within the government of the United States, it is often said to be "independent within the government". The Federal Reserve explains the independence within government in the Federal Reserve System FAQ:<21>

'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.'

By law, banks in the United States must maintain fractional reserves either as vault cash or on account at the Fed; member banks earn no interest on either of these. The dividends paid by the Federal Reserve Banks to member banks are considered partial compensation for the lack of interest paid on the required reserves. All profit after expenses is returned to the U.S. Treasury or contributed to the surplus capital of the Federal Reserve Banks (and since shares in ownership of the Federal Reserve Banks are redeemable only at par, the nominal "owners" do not benefit from this surplus capital); the Federal Reserve system contributed over $29 billion to the Treasury in 2006.<22>




Perhaps you've heard of the concept of checks and balances. There are a number of independent federal agencies (22 or more, of which the Federal Reserve is one), which means they are government agencies but not under the direct control of the Executive Branch. See below for further explanation and a list of independent federal agencies.


From Wikipedia (http://en.wikipedia.org/wiki/Independent_agencies_of_the_United_States_government)

Independent agencies of the United States government are those that exist outside of the departments of the executive branch. Established through separate statutes passed by the U.S. Congress, each respective statutory grant of authority defines the goals the agency must work towards, as well as what substantive areas, if any, it may have the power of rulemaking over. These agency rules (or regulations), while in force, have the power of federal law.

Examples of independent agencies

The Central Intelligence Agency (CIA) coordinates the intelligence activities of certain government departments and agencies; collects, correlates, and evaluates intelligence information relating to national security; and makes recommendations to the National Security Council within the Office of the President.

The Commodity Futures Trading Commission (CFTC) regulates commodity futures and option markets in the United States. The agency protects market participants against manipulation, abusive trade practices and fraud. Through effective oversight and regulation, the CFTC enables the markets to serve better their important functions in the nation's economy providing a mechanism for price discovery and a means of offsetting price risk.

The United States Environmental Protection Agency (EPA) works with state and local governments throughout the United States to control and abate pollution in the air and water and to deal with problems related to solid waste, pesticides, radiation, and toxic substances. EPA sets and enforces standards for air and water quality, evaluates the impact of pesticides and chemical substances, and manages the "Superfund" program for cleaning toxic waste sites.

The Federal Communications Commission (FCC) is charged with regulating interstate and international communications by radio, television, wire, satellite, and cable. It licenses radio and television broadcast stations, assigns radio frequencies, and enforces regulations designed to ensure that cable rates are reasonable. The FCC regulates common carriers, such as telephone and telegraph companies, as well as wireless telecommunications service providers.

The Board of Governors of the Federal Reserve System (Fed board) is the governing body of the Federal Reserve System, the central bank of the United States. It conducts the nation's monetary policy by influencing the volume of credit and money in circulation. The Federal Reserve regulates private banking institutions, works to contain systemic risk in financial markets, and provides certain financial services to the U.S. government, the public, and financial institutions.

The Federal Trade Commission (FTC) enforces federal antitrust and consumer protection laws by investigating complaints against individual companies initiated by consumers, businesses, congressional inquiries, or reports in the media. The commission seeks to ensure that the nation's markets function competitively by eliminating unfair or deceptive practices.

The General Services Administration (GSA) is responsible for the purchase, supply, operation, and maintenance of federal property, buildings, and equipment, and for the sale of surplus items. GSA also manages the federal motor vehicle fleet and oversees telecommuting centers and child care centers.

The National Aeronautics and Space Administration (NASA) was established in 1958 to run the U.S. space program. It placed the first American satellites and astronauts in orbit, and it launched the Apollo spacecraft that landed men on the moon in 1969. Today, NASA conducts research aboard earth-orbiting satellites and interplanetary probes, explores new concepts in advanced aerospace technology, and operates the U.S. fleet of manned space shuttle orbiters.

The National Archives and Records Administration (NARA) preserves the nation's history by overseeing the management of all federal records. The holdings of the National Archives include original textual materials, motion picture films, sound and video recordings, maps, still pictures, and computer data. The Declaration of Independence, the U.S. Constitution, and the Bill of Rights are preserved and displayed at the National Archives building in Washington, D.C.

The National Labor Relations Board (NLRB) administers the principal U.S. labor law, the National Labor Relations Act. The board is vested with the power to prevent or remedy unfair labor practices and to safeguard employees' rights to organize and determine through elections whether to have a union as their bargaining representative.

The National Science Foundation (NSF) supports basic research and education in science and engineering in the United States through grants, contracts, and other agreements awarded to universities, colleges, and nonprofit and small business institutions. The NSF encourages cooperation among universities, industry, and government, and it promotes international cooperation through science and engineering.

The Office of Personnel Management (OPM) is the federal government's human resources agency. It ensures that the nation's civil service remains free of political influence and that federal employees are selected and treated fairly and on the basis of merit. OPM supports agencies with personnel services and policy leadership, and it manages the federal retirement system and health insurance program.

The Peace Corps, founded in 1961, trains and places volunteers to serve in foreign countries for two years. Peace Corps volunteers, now working in some 80 nations, assist in agricultural-rural development, small business, health, natural resources conservation, and education.

The Small Business Administration (SBA) was created in 1953 to advise, assist, and protect the interests of small business concerns. The SBA guarantees loans to small businesses, aids victims of floods and other natural disasters, promotes the growth of minority-owned firms, and helps secure contracts for small businesses to supply goods and services to the federal government.

The Selective Service System (SSS) is an independent federal agency operating with permanent authorization under the Military Selective Service Act (50 U.S.C. App. 451 et seq.). It is not part of the Department of Defense; however, it exists to serve the emergency manpower needs of the Military by conscripting untrained manpower, or personnel with professional health care skills, if directed by Congress and the President in a national crisis. Its statutory missions also include being ready to administer an alternative service program, in lieu of military service for men classified as conscientious objectors.

The Social Security Administration (SSA) manages the nation's social insurance program, consisting of retirement, disability, and survivors benefits. To qualify for these benefits, most American workers pay Social Security taxes on their earnings; future benefits are based on the employees' contributions.

The Securities and Exchange Commission (SEC) was established to protect investors who buy stocks and bonds. Federal laws require companies that plan to raise money by selling their own securities to file reports about their operations with the SEC, so that investors have access to all material information. The commission has powers to prevent or punish fraud in the sale of securities and is authorized to regulate stock exchanges.

The United States Agency for International Development (USAID) administers U.S. foreign economic and humanitarian assistance programs in the developing world, as well as in Central and Eastern Europe and the New Independent States of the former Soviet Union. The agency supports programs in four areas — population and health, broad-based economic growth, environment, and democracy.

The United States International Trade Commission (USITC) provides trade expertise to both the legislative and executive branches of government, determines the impact of imports on U.S. industries, and directs actions against certain unfair trade practices, such as patent, trademark, and copyright infringement.

The United States Postal Service is operated by an autonomous public corporation that replaced the Post Office Department in 1971. The Postal Service is responsible for the collection, transportation, and delivery of the mails, and for the operation of thousands of local post offices across the country. It also provides international mail service through the Universal Postal Union and other agreements with foreign countries.

An independent Postal Rate Commission, also created in 1971, helps the Postal Service set the rates for different classes of mail by holding hearings on rates proposed by the Postal Service, and recommending rates to the Postal Service Board of Governors, which in turn may accept or reject the rates. As of February 2006, legislation had passed both houses of Congress greatly increasing the regulatory powers of the Postal Rate Commission.

The Federal Retirement Thrift Investment Board is one of the smaller Executive Branch agencies, with just over 100 employees. It was established to administer the Thrift Savings Plan (TSP), which provides Federal employees the opportunity to save for additional retirement security. The Thrift Savings Plan is a tax-deferred defined contribution plan similar to a private sector 401(k) plan.




Question: Do you really want to to continue to argue this????