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1) The have made a profit every year including in the great depression
2) The are not owned by the govt, but instead by a group of shareholders that they will not disclose the current names of.
3) All shareholders are entitled by law to a 6% dividend, AND compensation. That is billions of dollars every year.
4) Some profit IS transferred back to the Treasury, AFTER all expenses, compensation, and shareholder dividend is paid.
After all necessary expenses of a Federal reserve bank have been paid or provided for, the stockholders of the bank shall be entitled to receive an annual dividend of 6 percent on paid-in capital stock.
Originally posted by Rockpuck
Basically .. you still fail to see how the system works.
Originally posted by the way
Hey, I don't claim to be an expert on this by any stretch of the imagination!
My understanding is that the federal reserve is a private, unregulated, for profit organisation that is propped up by foreign investment and paid on the debt the U.S has.
The more in debt the U.S gets the more money they make.
Thats my understanding of it.
Feel free to correct me if thats wrong?
Originally posted by Rockpuck
reply to post by Ex_MislTech
Indeed, very good explanation of Reserve Banking.
Originally posted by stander
Originally posted by Rockpuck
reply to post by Ex_MislTech
Indeed, very good explanation of Reserve Banking.
Now you see that demand for money creates money. Legitimate demand for money creates "good" money. The other demand -- a request for a loan to create another financial instrument -- creates "questionable money." The "subprime" demand for money created lots of very questionable money no one later wanted when they turned outright "bad". But you can't really tell apart the good money and the bad money -- they are both the "legal tender." What was known as "reserve banking" turned into "reverse banking," or something like that.
Originally posted by Rockpuck
reply to post by johnny2127
Hmm .. do you understand how a corporation even works?
Do I believe the FED is part of the Government? No, not per se.. It is a mixture of Private and Government.
The Government holds it's charter, and the ability to revoke it.. as well as choosing the head of the FED.
It is made up of Member Banks .. the Member Banks hold "non-transferable shares" in the Federal Reserve .. basically the Member Banks are paid this 6% dividend, which is expected as the Federal Reserve is private.
The Governors which represent the Federal Reserve and the 12 district Reserves are chosen by the President.
Basically .. you still fail to see how the system works.
(EDIT to add .. because I know you don't understand any of this .. that the Non-Transferable shares are owned by Banks .. and cannot be sold, traded, or otherwise altered. They are not owned by individuals. The share holders of the banks themselves ultimately are the directors of the Reserve, or, I should say, have the most influence over the Reserves actions.)
[edit on 8/5/2009 by Rockpuck]
SECTION 25a:
The fact that the certificate is made to enable the persons subscribing the same, and all other persons, firms, companies, and corporations, who or which may thereafter subscribe to or purchase shares of the capital stock of such corporation
SECTION 2:
Such stock shall be known as public stock and may or may not be transferred on the books of the Federal reserve bank by the chairman of the board of directors of such bank.
SECTION 28:
(b) Shareholder distributions authorized. As part of its capital reduction plan approved in accordance with subsection (a), and with the affirmative vote of shareholders owning at least two thirds of the shares of each class of its stock outstanding (each voting as a class), a national banking association may distribute cash or other assets to its shareholders.