The Federal Reserve Bank was created by the Federal Reserve Act of 1913. What this did was create a central bank for the United States. The responsibilities of the Federal Reserve Bank are to oversee the general banking system in the United States.
That all sounds fine and dandy, but what does the FED really do?
Here is a what the FED does:
-Insures banks (which is why banks are "member FDIC")
-Regulates interest rates (houses, loans, etc.)
-"Prints" money (typically digital these days, i.e. credit)
-Loans money to the Federal government
Here is an awesome 80's video about the Fed bank.
The tricky thing about the Fed and the FED is that only one of the two is actually a government entity. The Federal Reserve Bank is just a name, it is not part of the federal government.
What the Federal Reserve Act did was create a private not public organization. The only thing the federal government does is regulate the Fed as if it were a business. That may sound fine and you may be thinking, well gee, why are you wasting my time with your boring blog that I know nothing about nor care to continue reading?
JUST WAIT!
The reason that this Nongovernmental organization is problematic is because you and me are so influenced by it. Think of this: When you owe the bank money for your house and don't pay it, what happens?
.jpg)
Take that same idea and imagine that the Fed is the bank and the federal government is you. The federal government is pushing passed $17 trillion in debt. The majority of that debt is actually owed to the Fed.
Let's take the next step and say the federal government doesn't pay its debts, which it doesn't and the Fed demands payment for the loan. Well since the government has no money, the only things of value that it has are things like land, business, etc. hard assets. Suddenly things take a turn for the worst and public lands begin to disappear.
A quick reminder, when the Fed bank "prints" money for the Fed government, it is given as a loan with interest. So for every dollar printed by the Fed bank, the Fed government owes that. Pretty crazy right? If the Fed bank was public, meaning governmental, instead of private, then this potential issue would cease to be an issue.
Could this really happen though? I mean the government is more powerful than a business right? That may be true, but the thing is that the Fed bank can stop printing money, raise interest rates and to a myriad of other things that would be terrible for the rest of us. It's not like the Fed government is going to start a war over it. If you look up the debt clock you'll see how quickly the federal debt is rising. It is almost sickening to think that it would take over $150k from each tax payer to pay off that debt.
We need to make the Fed bank a fed government bank. That would eliminate this problem, debt issues and WE could have more of a say about what does and doesn't happen with out money, interest rates, etc.
At any rate there is countless information available in support of eliminating the Federal Reserve Bank, but not much in support of it. Do some research and you'll see.
