How is it consitutional which by profitable your taxes (US citizen) in isolation adults in the form of The Federal Reserve can distinction off of your income with no contend to your partial as to either or not we wish to deposit in their bank?
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Tagged as: banks, Federal, group, legal, private, profit, reserve, taxes, they
{ 2 comments }
It is the single largest injustice done to American citizens who are too ignorant to know..
This is the second largest problem in America………….
http://video.google.com/videoplay?docid=-4312730277175242198
sorry dude, no one answers mine when i ask this either……. no one knows anything about it,,,,,,,
The Federal Reserve System is organized with a government agency at the top (the Board of Governors), and branches beneath them that resemble private corporations. (http://www.federalreserveeducation.org/fed101/structure/ )
- To review the federal reserve structure…
At the top of the Federal Reserve System is the Board of Governors. These are all appointed for 14-year terms by the president and confirmed by congress. It operates per it’s charter and laws set by congress. it is overseen by congress. There is no structure or mechanism for private ownership at this level. In fact, board members are forbidden by law to have any economic interest in a private bank.
The 12 branches, however, are organized similar to private corporations. Member banks are required to buy shares in their branch. They can vote for 6 of their 9 board members. The shares get a standard 6% dividend. These shares cannot be sold on the open market. All ‘profit’ from the Federal Reserve branches are turned over to the Treasury at the end of the year. Is this private ownership? The Fed says no. (see
http://www.federalreserve.gov/generalinfo/faq/faqfrbanks.htm#6 ). The courts show a split decision.
I equate the arrangement to a government agency (the Board of Governors) contracting out the day to day operations to a tightly controlled and regulated company.
- To review the profit from taxes
I believe the comment comes from the interest earned from the T-bills that the Federal Reserve buys/sells to control currency in circulation. And it is true that member banks get a standard 6% dividend on the shares they own in a Fed Branch.
However, after the dividend and all expenses are paid, the rest is returned to the Treasury. That’s about 98% of the interest making it almost an interest free loan. Not a bad deal for tax payers.
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