Quote:Hmm, not sure why I thought that needed to be clarified. My reply was more to the thread than your exact post. I wanted more to comment on golds limited value outside of being a traditional safeguard for currency. For instance the 'petro-dollar' of today is somewhat useful as we force oil to be traded in dollars thereby making the dollar attached to something of A. Real value, B. Great need. However, by lifting sanctions on Iran and letting them promptly proceed to sell their oil for EUROs only we kind of screwed ourselves.
I think the fact that we have amassed so much debt as a nation has led to the deflating of the value of the dollar. Let's be honest, the Yuan will most likely soon be the international currency.
I think you mean the yuan. Possibly, but the next global currency may need to be gold backed since every unbacked currency is collapsing. People are stupid, but you generally need to wait a full generation before pulling the same scam. Meaning: when all currencies are worthless, people will be reluctant to trust a new currency which is also inherently worthless. It's just different ink on the same paper.
Quote:I think you mean the yuan. Possibly, but the next global currency may need to be gold backed since every unbacked currency is collapsing. People are stupid, but you generally need to wait a full generation before pulling the same scam. Meaning: when all currencies are worthless, people will be reluctant to trust a new currency which is also inherently worthless. It's just different ink on the same paper.
Thanks for correcting me.
No one is switching to Chinese currancy, there's proven instability and fraud there.
I think we need to go back to using wampum made of shells and cow chips..
Quote:The monetary system is ridiculous to anyone who understands it. It gives complete control to Central Banks. These are PRIVATE banks but we are not allowed to know who owns them. Think about that. Why would the government ask a private company to issue the nation's money, especially at interest? The government could just issue the money themselves and not have to answer to - or pay interest to - the private bank.
The other ridiculous part is that the currency issued has no inherent value. But since they are called "dollars" and they circulate along with other things we called "dollars" they are accepted as being the same. If you look at the wording on U.S. Currency over the years, you can see that "the dollar" has changed many times without our consent. Used to be you could take a $20 bill into any bank and walk out with almost 1-oz of gold. Even a $5 coin was made of gold. But people used paper money because it was essentially equivalent to gold. Until the day it wasn't.
I could go on, but do you think it's fair that Janet Yellen gets to decide how many billion dollars she will create today, which of her banking buddies she will lend it to, at what interest, etc? Meanwhile the average Joe has to actually WORK for his dollars - work extra hard so he can give some fruits of his labor to Ms. Yellen and the Fed for interest on a debt we never had a part in creating. Actually the Fed is lending to the banks at 0.0% interest and paying them 0.25% to "park their reserves" with the Fed! Actually the taxpayer is on the hook for that 0.25% free interest because if the Fed didn't have those payments the extra money would be returned to the Treasury.
Honestly, your post is Exhibit A in why, if I had to choose between the so-called "Elites" and the so-called "People," I choose "the Elites." Because "The People" have no concept of how our financial system works, and they are very susceptible to being misled by demagogues.
I don't know where you get these ideas, but most of them are complete fantasy.
There are no secret bankers who control the system.
And as far as "a debt we never had a part in creating..." yes, we did create that. We created it when we voted people into office who then decided to spend more money than we had coming in. It's us. We created that debt. Not some fantasy "secret bankers."
I suggest google "federal reserve system" and educate yourself on who these people are and what they do. There's no secret about it.
Marty-- While I agree with your 100% that the conspiracy theory of Byron and the OP is not how the monetary system works, the LIBOR scandal, along with the sub prime scandal proves that the banking system must be heavily regulated. Especially now that the globalization of the financial system is complete, the corruption of the system via deregulation is a huge concern.
OK Marty. Who owns the Federal Reserve? If you can't answer that question, you are admitting there are "secret bankers who control the system".
Quote:OK Marty. Who owns the Federal Reserve? If you can't answer that question, you are admitting there are "secret bankers who control the system".
The Federal Reserve is owned by private banks. However, the word "own" is not really applicable in a practical sense. They own it because they are forced to own it by law. In actuality, the Federal Reserve is run by the 12 members of its Board of Governors, 7 of which are appointed by the President, and 5 of which are appointed by the regional banks. The Federal Reserve is also subject to the will of Congress, which can change its duties and mission any time it wants. So, in answer to your question, "who owns the Fed," yes, the Fed is owned by private banks, but those private banks do not control it. It's mostly controlled by the President and by Congress.
For example, suppose you owned stock in a company, but you could not sell it, trade it, or pledge it as security for a loan, and a majority of the officers of the company were appointed by someone other than the stockholders. Of what use is "ownership" in that situation? So really, who "owns" the Fed is irrelevant.
Here is a basic introduction to the Federal Reserve. Please read it.
https://www.stlouisfed.org/in-plain-engl...troduction
Which private banks are owners of the Federal Reserve and are they recipients of the Fed's largess? If so, why is this obvious conflict of interest the basis for our financial system?
Quote:Which private banks are owners of the Federal Reserve and are they recipients of the Fed's largess? If so, why is this obvious conflict of interest the basis for our financial system?
About a third of US commercial banks are members of the federal reserve and own stock in the 12 regional Federal Reserve banks.
Every national bank has to be a member. State chartered banks can apply for membership.
But as I already explained to you, it's not real ownership. They can't sell or trade the stock, and they can't use it as collateral for a loan, and they have no real control over Fed policy.
Now, you answer a question. Who owns the banks that are own the stock of the Federal Reserve system?
Okay, I'll go ahead and give you the answer. You and I own them. And everyone else who owns a mutual fund or an index fund. Millions and millions of ordinary citizens.
Do they benefit from the Fed's largess? By law, the fed has to pay them a dividend at a maximum rate of 6%.
You see some kind of shadowy conspiracy in all this, but it's really pretty simple. If you try to understand it.
We own the Federal Reserve? Your education is complete, my friend.