“Central Banks are often nominally owned by private
individuals or, as in the United States, jointly by private
banks; but they are always directed by government appointed
officials, and serve as arms of the government.
Where they are privately owned, as in the original Bank of
England or the Second Bank of the United States, their
prospective profits add to the usual governmental desire for
inflation.” -p. (68)
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?!
The Second Bank of the United States was completely privately, I say was because it lost its Federal charter in 1836 and shut down in 1841.The Federal Reserve (actually, there are 12 Federal Reserve banks) is mostly owned by large private banks, but it is run by a board of governors who are appointed by the U.S. president.
Wren: thanks for info. But first off, to say that something is “privately owned” is quite different than if it’s actually just a “hybrid-government-private agency.”
Secondly, why the hell does there even exist these 12 regional Fed banks? Can’t the Fed out of it’s D.C. office take care of the (a) lender of last resort and (b) monetary policy functions?
Third, what is the point of the private banks being forced to buy stock in these Regional Fed banks? If it can’t be traded or sold what the heck is the point? Usually stocks are sold by a company to raise capital…however the Fed people don’t need to do that–they can just print out of thing air…
Angurse: I find that hard to believe. If it was completely private, how would it fulfill the role of lender of last resort? Did the politicians allow it to create US legal-tender paper notes out of thin air? I would strongly doubt that it did…
the Federal Reserve is entirely owned by private banks. It was created by the Money Trust in 1913, and remains owned by the money trust. G. Edward Griffin’s “Creature from Jekyll Island” proves quite comprehensibly that the Fed is a privately owned institution
and the governers and chairmen that the President “chooses” are all taken from a small list that the President is given in the first place, whose listings all contain people well connected with the private banks, there’s virtually no real “choosing” of any sort
gGopenhaver: thx for that. That’s the best answer I’ve gotten so far!
But, why does the government even require that banks buy shares (a “tax” as Rothbard calls it) in the Fed Regional banks? It seems completely redundant to me.
Companies issue shares to raise capital. What do these Fed Regional banks need to raise capital for??
Libertystudent: if the politicians allowed it to create governmental legal-tender notes how can that be called ‘completely private’?
I don’t see how it could…
Diogenes: I have Griffin’s book but have not read it yet. What specifically and exactly does GEG say that the private banks own of the Federal Reserve? The buildings? The office furniture? The office supplies? Or something else?
Libertystudent: Is not being able to create governmental legal-tender notes a huge governmental privilege? How can that be called a completely private enterprise? Rather, wouldn’t that be called corporatism?
Exactly. That is why I’m trying to figure this out. I want to dispel the myths.
The Federal Reserve itself isn’t really owned by anybody. The 12 banks that make up the entire reserve system are each owned by various sharholders (mostly private banks). But to simply call the Reserve private would be incorrect, its more of an independent entity working from within the US government.
The Fed is privately owed by the Class “A” stockholders that have never ever been announced publicly. The Class “B” & “C” stockholders are the member banks that all here all discussing.
Who really owns the Fed are the entities that put the assets in place to found the main Federal Reserve Bank of New York! Specifically the Rothschild Houses of London & Berlin, the Rockefeller’s Chase Manhattan Bank, the Morgan House Bank(s), the Bank of England, while the Mellon Bank of Pittsburg is a clearing house, etc.
Its Federal Reserve Notes are issued by this private corporation, hence are private corporation notes, though printed at the US Treasury under a contract called the Federal Reserve Act Dec 23, 1913.
These notes are F.R.A.U.D.s, aka Federal Reserve Accounting Unit Dollars, which are debt notes bearing interest of 6% on the official debt of the United States which is now over $10.5 trillion and counting every second. Yes Fed. Res. Notes are simply evidences of debt, certainly not lawful money as specified in Article I Section 10 of the US Constitution, “No State Shall…Make Anything But Gold & Silver Coin A Tender In Payment of Debts”! see debates August 16th & August 28th, 1787 Constitutional Convention.
Aside from being legal only as a convenient government contractor inside the District of Columbia only, if at all, in theory whatever is purchased with these F.R.A.U.D.s or the credit issued by the Federal Reserve System technically belongs to this “Fed Corporation” including your own personal house and car if bought with Federal Reserve Note cash or loan or mortgage!
This further provides evidence for their sister agency the IRS to tax all movements and known motions of their evidences of debt that they can prove within their various Federal Reserve System entities! Hence your Taxpayer ID number since January 1st, 1984 is your Social Security Number, which makes you a District of Columbia subject to that jurisdiction thereof! Hence taxable for the very air you breath wherever you may be as long as you are alive or as long as that number exists earning income even after you are dead! That Super Slave number now makes you equal to the 1857 status of Dred Scott’s daughters and the 14th Amendment “persons” that cannot question the Official National debt as mentioned in the ratification defeated 14th Amendment! see US Sup Ct cases. White vs Texas (1868). Boyd vs Nebraska ex rel Thayer et al (1890), Griswold vs Hepbern (1870), Dred Scott vs Sanford (1857) & 14th Amendment clause 4. read Justice Field’s dissent filed in Julliard vs Greenman (1884) and book by renowned historian George Bancroft “A Plea For The Constitution; Wounded In The House Of Its Guardians” (1886).
The First Bank of the United States (1791-1811) and the Second Bank of the United States (1816-1836 charter) were 80% private and 20% government owned. see Congressional World records of 3 votes of defeat against 2nd Bank of US charter for national jurisdiction in 1811 and VP Clinton’s statement upon breaking the tie vote! Read vote of 2 defeats and 1 win in 1816 2nd Bank of US charter inside DC only jurisdiction! Read President Andrew Jackson’s 1832 Veto Speech against the Third Bank of the United States Charter and vetoes of the next 4 US Presidents against same 3rd Bank of US charters. The Bank of North America (founded 1783) is the oldest private bank in USA which Alexander Hamilton worked for. Read the terms brought by military officer Alexander Hamilton to the Moore’s House as conditions of surrender by British Gen Cornwallis negotiated Oct 19th-21st, 1781. Also read Sec of Treasury Hamilton’s “Report on the Establishment of a Mint” submitted to Congress February 28th, 1792 and the Mint Act of April 2nd, 1792 establishing a Constitutional Bimetallism Silver Standard. Read US House debates & votes in 1841 for gold & silver specie and against paper money. President John F. Kennedy Executive Order #111110 written Monday June 3rd, 1963 issued June 4th, 1963 and affirmed by Congress Friday June 7th, 1963 its in the Presidential Papers book series records of every US President till date!
President elect & Constitutional Law Professor Senator Barack H. Obama Jr mentioned that this country (USofA) is now 221 years old in his victory speech Tuesday Nov 4th, 2008 which indicates the USofA actually started in 1787 and not in 1776! He also always says “God Bless the United States of America” instead of simply “God Bless America” indicating a corporation compact board meeting instead of the Sovereignty of the 13 States and its Representatives which won the right to exist prior to 1783 under the Articles of Confederation. Remember Ben Franklin was asked on the steps outside just as they signed off the 1787 Constitutional Convention what type of government did the convention create? He replied, “Its A Republic, if we can keep it”! see book “The Making of America” by W. Cleon Skousen. http://www.skousen2000.com/political%20products/making.htm
Cashin: Thx for that info. Did you type that all up?
I’d like to start with a question on your 1st point about the class A shares. What specifically and exactly do these Class A holders own with their shares? The buildings + land for the Federal Reserve banks (in point 2 you seem to imply that they own the building + property of the New York Fed)? Or is it something else?
Yes i did type it all up and there is much more! I did a masters thesis on the coinage and monetary clauses in the US Constitution and it required me to read every legal thing i could find from 1700 to 1984. I have even talked to Eustice Mullins and Ed Viera on the phone back in the 1980s.
The Class A stockholders have control and thats all they needed since it was their assets used to start up the NY Fed Bank!
These people are already very very rich they use this system to prop up whom they wish and knock down who they wish!
They can make whom they want and ruin whom they want if you don’t go along with their game!
No since they control the deck of cards and the jokers they can add more cards by telling their Fed officials what to do.
Take a good look at the way the Fed System is set up with the NY Fed taking control and most of the seats on the Fed Open Market Committee. Even Obama has tipped the current head of the Fed Reserve Bank of NY to join his economic team as of last Friday while former Chairman Paul Volcker 1979-1987 was standing behind him during his 1st press conference as President Elect!
But remember that The Fed Chairman is not appointed until his term is over every 5 years and not as new Presidential administrations enter every 4 years!
Then most of the Fed Board Members and Chairmen served in the NY Fed 1st.
I suggest you read a few books on the Fed such as:
The Federal Reserve Hoax (1963) by Vennard, Wickliffe B.
Secrets Of The Temple: How The Federal Reserve Runs The Country by William Greider