2% on the day – beer money for sure….as well the following cartoon:
For an additional 8:51 minutes of your time I truly believe you will enjoy this excellent video explanation of the Federal Reserve. In particular the part siting the “owners” of the Federal Reserve, as well the little bit on every man,woman ,child and baby “owing” the Federal Reserve.
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[youtube=http://youtu.be/Oe0fGXzKb1o]
Back in 1972 I read a booklet called, “How to Prepare for the Coming Crash.” Silver was between 2 and 3 dollars an ounce back then. That author ALSO pointed out that the Fed was not actually a government institution. He said if you send them a letter, their response will have a postage stamp.
Maybe I’m missing something, here, (and it isn’t that I disagree with the video in principle) but since it defines a “Free Market Economy” as one operating WITHOUT state intervention – and the Fed is NOT a state institution – wouldn’t the U.S. economy then, still qualify as a Free Market Economy?
The video also said Congress gave control to the Fed, which therefore puts the Fed – not Congress – in control. And also that Congress and the President have no say in the Fed’s regulation.
Another point I don’t quite understand is, if the Fed “distributes” money printed by the U.S. Treasury – which IS a government institution – at what point does the Fed go from distributing to OWNING the money it lends?
Anyway, if the government owes money to the Fed, but never actually repays it (except interest) isn’t that good for the government? It seems the Fed can’t EVER demand it ALL back – that would ruin its business.
A follow-up thought:
The Fed, itself, sounds more akin to a corporation – exploiting its “Free Market” situation – No intervention or regulation by a State.
Hi Dennis….hey – you’ve got some great points – I think the videos are moreso aimed at “opening the eyes” of many people in general who may still have the notion that indeed “The Fed – IS The Government” – and not an actual privately owned company (especially one owned in part by Goldman Saks!)
For me, that in itself (as well the general humor) was reason enough to have a look / view. I for one ( as a Canadian ) find the entire thing absolutely outrageous – and thought the “cute cartoons” explained it relatively well. Much better than I would of…..and I’m not nearly as cute.
Well, I do agree with the Fed being revealed as private is an important distinction to make, but the video also mis-characterizes the actual situation, as I pointed out.
The Fed seems more like a huge unregulated corporation.
But the part I still don’t get is how the money the Treasury prints becomes the Fed’s money (vs. just distributing the stuff with a reasonable mark-up for being the middleman).
Seems like the Government would be the true owner (wholesaling to the Fed for fee) and therefore no National Debt – the Fed owes the Government for trafficking its money.
Maybe I’m naïve.
Do you get the part where the Treasury’s money gets hijacked by the Fed?