1. Read this excerpt from WHGDTOM:
"Central Banks are often nominally owned by privateindividuals or, as in the United States, jointly by private banks; but they are always directed by government appointedofficials, and serve as arms of the government. Where they are privately owned, as in the original Bank ofEngland or the Second Bank of the United States, their prospective profits add to the usual governmental desire forinflation." -p. (68)
2. First off, what is there even to own in the Federal Reserve?
I can think of just the physical building in DC, the office supplies + furniture inside it, and the contracts of the employees (Ben and his crew).
Last I checked, the government owned those things...So what the hell is Rothbard talking about here?!
Davidz: yes the banks "own" some common stock...but it's not true ownership. They were forced by law (the Federal Reserve Act) to purchase the stock...so it's in effect a tax. True ownership is voluntarily.
2nd, ownership means control over the property you own. The banks that own common stock by law cannot sell it.
So, this private ownership of the Federal Reseve is just a smoke-screen...the Federal Reserve is controlled by the gov't.
Joel: But I'm not understanding why repudiating the debt would cause anyone to stop valuing the dollar. Certainly it would collapse the demand for US Treasuries (the Treasury would find it very difficult to borrow). But the demand for Treasuries does not create demand for dollars. Rather I think the opposite is true.
But I'm not understanding why repudiating the debt would cause anyone to stop valuing the dollar. Certainly it would collapse the demand for US Treasuries (the Treasury would find it very difficult to borrow). But the demand for Treasuries does not create demand for dollars. Rather I think the opposite is true.
of course the Fed earns a profit for its owners, that's why it was MADE by the MONEY TRUST in 1913 in the first place. Honestly, you REALLY have to read Mullins and Griffin if you want to a clear picture of this. They go over it very thoroughly. The Fed just has a cheque book where it literally "writes" up new money whenever the US government needs it, and it OWNS the money too, and thus it "lends" it out to the US it's perfectly legitimate to call it a "conspiracy" because that's exactly what it is. Honestly, why are people so obtuse and herd minded that they make up lousy smear terms such as "conspiracy theorist" to slam anyone that tells the Truth?
of course the Fed earns a profit for its owners, that's why it was MADE by the MONEY TRUST in 1913 in the first place. Honestly, you REALLY have to read Mullins and Griffin if you want to a clear picture of this. They go over it very thoroughly.
The Fed just has a cheque book where it literally "writes" up new money whenever the US government needs it, and it OWNS the money too, and thus it "lends" it out to the US
it's perfectly legitimate to call it a "conspiracy" because that's exactly what it is. Honestly, why are people so obtuse and herd minded that they make up lousy smear terms such as "conspiracy theorist" to slam anyone that tells the Truth?
Because they must admit they don't know everything.
yes the banks "own" some common stock...but it's not true ownership. They were forced by law (the Federal Reserve Act) to purchase the stock...so it's in effect a tax. True ownership is voluntarily. 2nd, ownership means control over the property you own. The banks that own common stock by law cannot sell it. So, this private ownership of the Federal Reseve is just a smoke-screen...the Federal Reserve is controlled by the gov't.
No... that's not really the issue. It's not SunTrust bank and Flagstar Bank and US Bank and Bank of America or whatever other commercial banks you might be familiar with, who "own" the guaranteed 6% dividend paying shares in the Federal Reserve, it's an international money cartel. The (conspiracy) theory version says that the Fed is owned, essentially by the following institutions:
Rothschild Bank of Londong, Warburg Bank of Hamburg, Rothschild Bank of Berlin, Lehman Bros. NY, Lazard Bros. Paris, Kuhn & Loeb NY, Israel Moses Seif Banks of Italy, Goldman Sachs NY, Warburg Bank of Amsterdam, Chase Manhattan Bank NY.
The "smoke screen" is that the Fed is governed by 12 federal reserve banks and a board of governers in the United States, when in fact it is controlled by an international money cartel.
What they "own" with this stock is not real property, but like any stock ownership is a claim to a future dividend income stream. In the case of the FRB, they are literally printing money and lending it at profit, so the 6% dividend is effectively perpetually guaranteed.
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David Z
"The issue is always the same, the government or the market. There is no third solution."