The Federal Reserve Is A PRIVATELY OWNED Corporation

[A8TOOL]

I've asked every person I've come in contact with over the last 3 days " Is the Fed owned by a corporation or part of the government?"
 
What would you have said if asked this question?

NOT ONE I asked said Corporation. If you don't believe me, try it yourself.


My next question "if true, should the Federal Reserve be taxed for money earned from interest earned?"

They all said yes but few believed it was a corporation.

Looking into this further... There is no record of the federal reserve paying any taxes that I can find....yet. I was able to find many articals written saying the books are closed and or not for public viewing.


Ive just noticed that this link to Wikapedia has been changed slightly since my last visit. It now uses the term quasi-governmental/quasi-private banking system. I don't know what else has been changed since I last read it two days ago.



Link to Federal Reserve History  

Link to Central Banks


This is an artical written in 1992 explaining the Federal Reserve

The Federal Reserve No More Federal Than Federal Express

[A8TOOL]

The Fed holds 790 billion in US debt which means part of the national debt is held privately by the Federal Reserve.

Found on this page in wikapedia


Federal Reserve Balance sheet


Found on another website

Congress and the IRS do not have access to the financial records of the FED. Every year Congress introduces legislation to audit the FED, and every year it is defeated. The FED banking system could easily be netting 100s of billions in profit each year. Through "creative accounting" profit can easily be reclassified as expense (Reference 14, P. 20, Reference 17, P. 239). Within the first few years, the shareholders of the FED received their initial investment back with no risk. All the income is tax-free, except for property tax, according to the Federal Reserve Act. When are the profits of the FED going to start flowing into the Treasury so that average Americans are no longer burdened with excessive, unnecessary taxes? Clearly, Congress cannot or will not control the FED.


In other words, by Congress allowing the constitutionally illegal FED to continue, much of your taxes go to the shareholders of the FED and their bankers. Note: The people who enacted the FED started the IRS, within months of the FED's inception. The FED buys U.S. debt with money they printed from nothing, then charges the U.S. taxpayers interest. The government had to create income tax to pay the interest expense to the FED's shareholders, but the income tax was never legally passed (Reference 20 shows details, state-by-state why it was not legally passed). The FED is illegal, per Article 1, Section 8 of the United States Constitution. Not one state legally ratified the 16th Amendment

[trax1]

I actually just learned this myself today, my online buisness managment class started today and in my textbook it says, the federal reserve is a semiprivately owned and not directly under the goverments control, but does have people in charge that are appointed by the president.

[Xargos]

http://www.apfn.org/APFN/fed_reserve.htm

[Holden McGroin]

Originally posted by A8TOOL
My next question "if true, should the Federal Reserve be taxed for money earned from interest earned?"

SEC. 7. After all necessary expenses of a Federal reserve bank have been paid or provided for, the stockholders shall be entitled to receive an annual dividend of six per centum on the paid-in capital stock, which dividend shall be cumulative. After the aforesaid dividend claims have been fully met, all the net earnings shall be paid to the United States as a franchise tax, except that one-half of such net earnings shall be paid into a surplus fund until it shall amount to forty per centum of the paid-in capital stock of such bank.

The net earnings derived by the United States from Federal reserve banks shall, in the discretion of the Secretary, be used to supplement the gold reserve held against outstanding United States notes, or shall be applied to the reduction of the outstanding bonded indebtedness of the United States under regulations to be prescribed by the Secretary of the Treasury....  

 

Sounds like it's taxed and earnings paid to shareholder banks are capped at 6%.  Of course, when a member bank makes a profit, it needs to pay corporate income tax on that net profit.

Governments tax.  Be assured they didn't overlook that.

So this private corporation's leadership is controlled by the Federal Govenment, it's membership is controlled and required by the Federal Government, its profits are limited by the Federal Government, and it's inception was controlled by the Federal Government.  

I can't think of any other private corporation that is so controlled and limited by the Federal Government.

[A8TOOL]

OK Holden mygroin

Section 7 of the Federal Reserve Act, passed December 23, 1913, states that much of the profit of the FED should flow into the U.S. Treasury. In 1959, new legislation allowed the FED to transfer bonds to commercial banks at no cost to the bank. Now the FED receives less interest income and less profit for the U.S. Treasury because the money is diverted to other banks through an accounting entry (Reference 17, P. 115-130).

Congress and the IRS do not have access to the financial records of the FED. Every year Congress introduces legislation to audit the FED, and every year it is defeated. The FED banking system could easily be netting 100s of billions in profit each year. Through "creative accounting" profit can easily be reclassified as expense (Reference 14, P. 20, Reference 17, P. 239). Within the first few years, the shareholders of the FED received their initial investment back with no risk. All the income is tax-free, except for property tax, according to the Federal Reserve Act. When are the profits of the FED going to start flowing into the Treasury so that average Americans are no longer burdened with excessive, unnecessary taxes? Clearly, Congress cannot or will not control the FED.

[Holden McGroin]

Originally posted by A8TOOL
The FED banking system could easily be netting 100s of billions in profit each year.

Within the first few years, the shareholders of the FED received their initial investment back with no risk.

And the share holders are the member banks, the shareholders of member banks are listed in records held by the SEC.  Dividends paid or capital gains made are reported to the IRS.

The 100s of billions you worry about get taxed.  Nothing is more certain than death and taxes.

What other PRIVATE CORPORATION leadership is as controlled not by stockholders but by the President and Congress?

[A8TOOL]

Federal reserve is  mostly owned by other countries will show proof as soon as I can verify.

[Holden McGroin]

source

Perhaps foreigners own shares of the New York Federal Reserve Bank directly. The law stipulates a small portion of Federal Reserve stock may be available for sale to the public. No person or organization, however, may own more than $25,000 of such public stock and none of it carries voting rights (12 USCA 283). However, under the terms of the Federal Reserve Act, public stock was only to be sold in the event the sale of stock to member banks did not raise the minimum of $4 million of initial capital for each Federal Reserve Bank when they were organized in 1913 (12 USCA 281). Each Bank was able to raise the necessary amount through member stock sales, and no public stock was ever sold to the non-bank public. In other words, no Federal Reserve stock has ever been sold to foreigners; it has only been sold to banks which are members of the Federal Reserve System (Woodward, 1996).

Worry about something else... like who was on the grassy knoll?

[Captain Virgil Hilts]

Originally posted by A8TOOL
Federal reserve is  mostly owned by other countries will show proof as soon as I can verify.

You make an assumption, and state it as fact, with no proof. You read wikipedia and believe it as gospel. What a joke. Great troll. At least in your own mind.

[lazs2]

damnit holden...  it was so much better story till you butted in with a bunch of uninteresting facts.

still... he got ya on the "the country is owned by furrighners" part.   You won't be  able to wiggle out of that one.

lazs

[EagleDNY]

Originally posted by A8TOOL
OK Holden mygroin

Section 7 of the Federal Reserve Act, passed December 23, 1913, states that much of the profit of the FED should flow into the U.S. Treasury. In 1959, new legislation allowed the FED to transfer bonds to commercial banks at no cost to the bank. Now the FED receives less interest income and less profit for the U.S. Treasury because the money is diverted to other banks through an accounting entry (Reference 17, P. 115-130).

Congress and the IRS do not have access to the financial records of the FED. Every year Congress introduces legislation to audit the FED, and every year it is defeated. The FED banking system could easily be netting 100s of billions in profit each year. Through "creative accounting" profit can easily be reclassified as expense (Reference 14, P. 20, Reference 17, P. 239). Within the first few years, the shareholders of the FED received their initial investment back with no risk. All the income is tax-free, except for property tax, according to the Federal Reserve Act. When are the profits of the FED going to start flowing into the Treasury so that average Americans are no longer burdened with excessive, unnecessary taxes? Clearly, Congress cannot or will not control the FED.

Yes, the fed transfers money to commercial banks - commercial banks are required to keep a certain percentage of their funds as capital reserves and loan out the rest.  By moving money in to (and out of) commercial banks, the fed effectively manages the availability of credit.  This lets them heat up and cool down the economy / manage inflation / etc.  It also allows them to counter any runs on the banking system / US dollar.

Also - banking is a "cost plus" business.  Where do you think the all of these "billions in profits" the fed makes comes from?  It comes from the people paying interest on the loans - the commercial banks make money on the spread between the prime lending rate (which the fed charges them) and what they charge the consumer.  Whether the money enters the treasury from tax revenue or from higher interest rates paid by consumers, the source of the dollars is the same.  If the fed charges the banks more interest, the banks turn around and charge the consumer more interest -  just take a look at the cost of home mortgages and the housing market if you want a good example of how this works in our economy.

Finally, giving Congress more control over the Fed is frankly, INSANE.  I live near Washington, and I can tell you that the absolutely last thing this country needs is for congressmen and senators to start jacking around fed policy for political reasons.  Want to have an effect on a upcoming presidential election?  Crank up the cost of credit until the economy enters a recession, then blame it on the President.  Need some more political contributions for the next election cycle?  Help some cronies start a bank serving the "disadvantaged" and then force the fed to give them a lot of money with an earmark in a budget bill.  The possibilities for abuse are endless, and the possibility of anything useful coming out of more congressional control are pretty much nil.

If the goal is ultimate to reduce the "excessive, unnecessary taxes" on the american people, lets start with getting Congress to rein in their spending our dollars like drunken sailors (apologies to drunken sailors for the insult).  Reforming zero-base budgeting, cutting earmarks (don't think for a minute that this last bill ended earmarks folks), and eliminating tons of congressional pork will do a lot more for your tax bill than letting congress jack around with the Fed.  

EagleDNY
$.02

[lazs2]

that was very well said eagledny

lazs