Sorry Folks, the Fed is NOT a Private Bank

I’m afraid that I don’t know exactly who Spencer Pratt and Heidi Montag are. I gather they’re celebrities of some sort, but perhaps not truly authentic celebrities.
In any event, what brought them to my attention was Mr. Pratt’s recent commentary on the Federal Reserve on Alex Jones’ InfoWars. Jones is someone I am familiar with; he uses his show to warn Americans of the growing danger posed by the New World Order.
The NWO is apparently a conspiracy so vast and complex that it actually reaches into the depths of human understanding of reason and logic to cruelly twist all of Mr. Jones’ arguments into errant nonsense.
If you jump to the eight minute mark you can hear Spencer tell us that the Federal Reserve is a private company just like Federal Express.

This seems to be a popular misconception about the Federal Reserve. Like many things said about the Fed, it’s not true—the Fed is not a private bank. The best way to describe it would be a hybrid quasi public system. Not surprisingly, the end result was part of a political compromise. If my business were run that way, I wouldn’t consider it private.
The members of the Fed’s board are appointing by the President and are confirmed by Congress. The FOMC, which is the policy committee, is mixed with board members and regional bank presidents.
The regional reserve banks do issue stock to member banks but it’s very different from owning shares in FedEx. For one, the banks can’t sell or trade the stock. The dividends are set at 6% a year. Everything after that goes to the Treasury. Plus, the banks have to invest 3% of their capital in the Fed.
Incidentally, FedEx’s CEO is Fred Smith who’s a member of Skull and Bones so perhaps it too is part of the New World Order.
(HT: LOLfed)

Posted by on July 13th, 2009 at 1:09 pm


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