Who funds the Federal Reserve System

[ivanm]

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I was responding to one of nra's posts and stated I would try to find out how the FRS is funded.  The following web site contains some input on that question.

http://www.richmondfed.org/faqs/frs/

The last two subtopics should answer the question of whether or not it received Congressional funding.  It does not.

[lucy]

The FRS funds itself. It creates "money". And loans it to the US with interest.

But the investors and owners of the FRS are foreign banks by and large.

[ivanm]

The FRS funds itself. It creates "money". And loans it to the US with interest.

But the investors and owners of the FRS are foreign banks by and large.

I take it you have a problem with the FRS. 

Ever heard of out sourcing lucy?  If the government can out source everything else then why not out source the money system? You keep crying wolf but I don't see you coming forth with any alternatives that are tried and proven. The FRS has served us well down thru the decades and yet you keep on trashing it. 

Sure the FRS handling of the derivative thing stinks, and I am also concerned about it wanting to bail out the losers in the Euro melt down. As risky as it may be, both sitations are in our best interest to get under control, particularly the Euro ecoomies, because they are our trading partners.
Fewer foreign sales, fewer jobs for Americans that make things for export, get it?
 
Rather than blaming the FRS for the sub marginal loans and the derivatives that were involved why don't you blame the wrong headed policies of past administrations who encouraged the lending of mortgage money to people who had little chance of making good on the payments.

I must conclude one of two things about your attitude.  It is either class envy or it is anti-semitic. Frankly, your persistent harping on the FRS gets under my skin.

[nraforlife]

............. The FRS has served us well down thru the decades...........................

SERVED WELL? Hmmmmmm, perhaps in the sense of the old Twilight Zone Episode- 'How to Serve Man' the Fed has 'served' America well done, eh.

No individual or group should be allowed to issue the currency for their own personal benefit. That power must reside with the Treasury of the USA and be executed in a manner which promotes the General Welfare of all Americans. BTW THAT is what the Constitution requires.

[ivanm]

SERVED WELL? Hmmmmmm, perhaps in the sense of the old Twilight Zone Episode- 'How to Serve Man' the Fed has 'served' America well done, eh.

No individual or group should be allowed to issue the currency for their own personal benefit. That power must reside with the Treasury of the USA and be executed in a manner which promotes the General Welfare of all Americans. BTW THAT is what the Constitution requires.

That was the intent of the FRS, to remove politics from our money supply, to serve the welfare of everyone.  Maybe it has gone astray, I don't know for sure.

The act of a bank granting a loan in effect creates money, and you are suggesting that the bank owners should not show a profit? That is how they make their living and that is how they pay their employees, the peons like you and me.

When people are under financial stress they will seek out scapegoats.  And the FRS is an easy mark. Except that most who complain have no idea how the system works and why it is done that way, so it is safe to gripe about something that you don't understand.
 
The FRS is at a great disadvantage now because no amount of easing will stimulate people to take risks and to borrow money. They can't give it away except to shysters. The problem is not with the FRS but with the socialists in the Congress and in the WH. 

Why should an employer take risk for the sake of his employees only? What is in it for him?  He can't even get an unemployment check if he goes broke.