Political Theory

Re: What does it mean when people say the federal reserve is a "private" bank?

SkepticalMetal — Fri, 12 Oct 2012 23:16:34 GMT

Officially, the Fed is private.

But when you look at it...how on earth could it be? How is that monopoly maintained? Oh yeah, because it's private status is only for show.

Re: What does it mean when people say the federal reserve is a "private" bank?

Buzz Killington — Fri, 12 Oct 2012 22:47:59 GMT

It means them evil banksters be controlling our gubmint, so its not really our gubmint's fault.

Re: What does it mean when people say the federal reserve is a "private" bank?

Malachi — Fri, 12 Oct 2012 22:44:50 GMT

Thats correct. A free market in money would solve a lot of things.

edited to add: I may have misled you a bit, because the fed does create electronic dollars. I think congress has the power over money and they delegated it to the "private" federal reserve bank. Also note that the fed itself equivocates on its public/private status, sometimes in the same trial. "for the purposes of X statute, the federal reserve is private. For the purposes of Y statute, the federal reserve is public."

Re: What does it mean when people say the federal reserve is a "private" bank?

Kelvin Silva — Fri, 12 Oct 2012 22:32:37 GMT

I see wat u did dere.

So in reality, if we got rid of legal tender laws and let anyone use their own type of currency, it would be just as good as abolishing the fed?

The legal tender law gives the fed its monopoly status?

Re: What does it mean when people say the federal reserve is a "private" bank?

Malachi — Fri, 12 Oct 2012 22:30:15 GMT

The ownership is privately held. Legal tender laws make US Dollars legal for settling all debts, the fed is just the sole remaining contractor who issues banknotes for the US. ;-)

What does it mean when people say the federal reserve is a "private" bank?

Kelvin Silva — Fri, 12 Oct 2012 22:24:15 GMT

Doesnt the government appoint the chairman of fed. reserve?

Arent there tender laws forcing us citizens to ur FRB notes?