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End the Fed?

  • Thread starter dashman
  • Start date
  • #21
Does anyone even know who owns it? It is a private company. Who gets the profits? If we are going to have a Fed, I would much rather see it made a public company with shares trading on the stock market and dividends paid. Why did we sign over this massive money maker to a privately held bank? That doesn't have to follow the same SEC guidlines imposed on the rest of the banking world? Are they special? Are they above the law?

Also, they have no competition. Isn't that a monopoly?

I answered a bit if your questions in my second post. The US Treasury gets the profits for congress and the current president to help decide how it is spent. Your second article states this as well. Paying dividends sounds like a great idea to me, but it'd really be like a tax return.

Maybe if the Fed could make money like this all the time there wouldn't be a need for taxes! :-))

And it really is a government entity, regardless of what some people will tell you. It's kind of like the Supreme Court where it's members aren't democratically elected. And it wields such great economic power without the help or decisions of congress for a number of reasons. One of them being in the event of a crisis it needs to act and make decisions fast, something that congress never does.

And yes, they do have a monopoly on what they do, but that's usually the case with all government entities. They have the monopoly on governing, in this case it's the economy.

Hopefully you don't mind me taking part in this discussion as much as I am, I really enjoy this sort of thing and enjoy hearing other peoples opinions!
 
  • #22
I don't mind in the least. I rather enjoy it. This is how public debate should be. Nice, peaceful, honest, and open. An art I think our friends at capital hill have lost. Name calling, finger pointing, and labeling do not really solve problems IMO.

The US Treasury gets the profits for congress and the current president to help decide how it is spent. Your second article states this as well. Paying dividends sounds like a great idea to me, but it'd really be like a tax return.
Oh, but they do. From the last few years I checked they profited no less than 30 billion dollars per year.

And it really is a government entity, regardless of what some people will tell you.

I would tend disagree with you on the government entity part as well. I guess in an acedemic sense they could be called an "Independant Agency". But there are no checks and balances.

Don't take my word for it. Let's here from Mr. Greenspan, former director of the Fed.

http://www.youtube.com/watch?v=pVmxQsvj6lo

So, in addition to being a monopoly, they answer to no-one and under a shroud of secrecy. We don't even get to see what they do and where thier profits go. Bernake was asked specifically by Congress who got the TARP funds and the Fed refused to tell Congress. Does this not scare\anger anyone but me?

According to law...
"The Federal Reserve is subject to oversight by Congress, which periodically reviews its activities and can alter its responsibilities by statute."

I say Congress gives the Fed the responsibility of valet parking at the Smithsonian, free of charge.
And yes, they do have a monopoly on what they do, but that's usually the case with all government entities. They have the monopoly on governing, in this case it's the economy.
Monopolies have no place in a democracy of checks and balances. The government is here to serve the people, and not the other way around. That is one of the main reasons why I do not care for the Bushes and Obama's of the world. They are trying to change the government into a monopoly on our lives albeit very slowly. But being one who gets paid to pay attention to detail, I do notice them and can also step back and take a big picture look to see where it is leading us. That is what scares me the most.
 
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  • #23
Maybe if the Fed could make money like this all the time there wouldn't be a need for taxes! :-))

BINGO!

Although I would say it like this. If we were to abolish the fed there wouldn't be a need for income tax.

Matter of fact, the modern income tax was inacted in 1913. The exact same year the Federal Reserve System was. What a coincidence.
 
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