Who owns the FED?

[Travis Retriever]

You said you'd need over 500 characters to explain what you meant:
http://www.youtube.com/comment_servlet?all_comments&v=ATsbbIJD3ew
Your part: "(uploader)   The Federal Reserve is "owned" by 12 district banks, which in turn are "owned" by the member banks in their district.

Now, if you want me to explain why I put the word "owned" in quotes, I'm gonna need more than 500 characters..."

I WAS going to post a bit you put in another video about ownership and why the Fed is publicly owned based on profits, liabilities, etc; but I can't find it...
I remember you noted that the profits the fed makes goes to the Treasury (a public institution).
Control is via Congress...and I can't remember your comment beyond that...
Some argue that, "Well, they answer to no one; they've put themselves above the law" but how is this ANY different from how the rest of the government operates?
I mean, if the Constitution is the supreme law of the land, while the government constantly violates it, is it not true that they are also above the law in the sense mentioned here?

Also, consider this mises.org Forum thread:  http://mises.org/Community/forums/t/8197.aspx
"The very fact that people can call a government central bank, created by Congress, with 7 board members appointed by the President and confirmed by the Senate, operating under the decree of government creating legal tender, and being exempt from taxes, and free from any competition 'de jure private' is just completely laughable in itself."

[MrBogosity]

The Fed is indeed "owned" by the district banks, which respectively are owned by the banks in their district, in a federated system, but:

1. Profits, except for a tiny amount that goes back into the operating budget, go to the Treasury (shouldn't the owners get the profits?)
2. Decisions are made by the Board of Governors and a chairman, who are appointed by Congress (shouldn't the owners elect the board?)
3. Congress can, at any time it wants, issue orders to the Fed without restriction (shouldn't owners have the right to due process?)
4. One cannot sell or trade their stock (then in what sense do you own it?)
5. They can't give up ownership

So, they own the Fed, except that they have no control over it, make none of the profits, can't trade their stock, and can't even get out of the system. They "own" the Fed in every way other than all of the ways that constitute ownership in the real world.

[Travis Retriever]

In short, the district banks only have, at best, the title part component of ownership and nothing else.
Hardly enough to quality as full ownership, or even quasi-private ownership.

[Travis Retriever]

As LibertyStudent once said:  "When... Alex Jones talk[s] about private bankers, he is letting all of the government crooks off the hook[.]"

[sfiorare]

The Fed is indeed "owned" by the district banks, which respectively are owned by the banks in their district, in a federated system, but:

1. Profits, except for a tiny amount that goes back into the operating budget, go to the Treasury (shouldn't the owners get the profits?)

don't you think that most member banks make enough profit from their own banks?

The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year.

http://www.federalreserve.gov/generalinfo/faq/faqfrs.htm#5

[MrBogosity]

don't you think that most member banks make enough profit from their own banks?

Irrelevant. We're talking about who owns the Federal Reserve. One aspect of ownership is profit; if they DID make a profit then you could at least make the argument that they're owners in some respects. But they don't.

ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year.

Which I covered in my comment. If you can't sell something, then that's another aspect of ownership that you don't possess.

So we're still left with: there is not one single aspect of ownership that anyone other than the Federal government could be said to have of the Federal Reserve.

[sfiorare]

So we're still left with: there is not one single aspect of ownership that anyone other than the Federal government could be said to have of the Federal Reserve.

i agree, for the most part

The Federal Reserve System is not "owned" by anyone and is not a private, profit-making institution. Instead, it is an independent entity within the government, having both public purposes and private aspects.

source: the fed

but, the member banks most likely make quite a handsome profit from the loans they make re-lending fed credit and etc

[MrBogosity]

The Federal Reserve System is not "owned" by anyone

It's owned by the Federal government, in every way that matters.

and is not a private, profit-making institution.

Yet, it still makes LOTS of profits for the US Treasury...

[sfiorare]

It's owned by the Federal government, in every way that matters.

Yet, it still makes LOTS of profits for the US Treasury...

you make it sound like all the people in the treasury and government get to divvy up the money and take it home

[MrBogosity]

The politicians get to spend that money however they see fit, yes. Don't think that most of it isn't in their pet pork-barrel programs.

[sfiorare]

The politicians get to spend that money however they see fit, yes. Don't think that most of it isn't in their pet pork-barrel programs.

do i detect a bit of envy there?

[MrBogosity]

do i detect a bit of envy there?

No, just perfectly-justified indignation at having some of my wealth stolen from me to use in this manner.

You really are king of the rhetorical cheap shots, aren't you?

[sfiorare]

No, just perfectly-justified indignation at having some of my wealth stolen from me to use in this manner.

You really are king of the rhetorical cheap shots, aren't you?

without taxation paying for infrastructure and credit for development, i doubt you'd have nearly the income you have, now

[MrBogosity]

Broken Window Fallacy.

[sfiorare]

Broken Window Fallacy.

that's a funny one