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The Federal Reserve System (also the Federal Reserve; informally The Fed) is the central banking system of the United States. ImageMetadata File history File links Download high resolution version (1024x768, 800 KB) The Federal Reserve headquarters in Washington, DC Taken 8/2004 by User:Rdsmith4 jhgsxcvjvcnbwc yoıu torkey sizin ananızı sikecez File links The following pages link to this file: Federal Reserve Image:Federal Reserve. ...
ImageMetadata File history File links Download high resolution version (1024x768, 800 KB) The Federal Reserve headquarters in Washington, DC Taken 8/2004 by User:Rdsmith4 jhgsxcvjvcnbwc yoıu torkey sizin ananızı sikecez File links The following pages link to this file: Federal Reserve Image:Federal Reserve. ...
The Marriner S. Eccles Federal Reserve Board Building houses the Federal Reserve Board in Washington, D.C. The building was designed by Paul Phillippe Cret and finished in 1937. ...
In Washington, D.C., Constitution Avenue is a major east-west street running just north of the United States Capitol in the citys Northwest and Northeast quadrants. ...
Aerial photo (looking NW) of the Washington Monument and the White House in Washington, DC. Washington, D.C., officially the District of Columbia (also known as D.C.; Washington; the Nations Capital; the District; and, historically, the Federal City) is the capital city and administrative district of the United...
Reserve Bank of India in Mumbai, India. ...
The Federal Reserve System is composed of a central Board of Governors in Washington, D.C. and twelve regional Federal Reserve Banks located in major cities throughout the nation. Alan Greenspan currently serves as the Chairman of the Board of Governors of the Federal Reserve. Washington, D.C. is the capital city of the United States of America. ...
Federal Reserve Districts The United States Federal Reserve System consists of twelve Federal Reserve Banks, each responsible for a particular district, and some with branches. ...
Alan Greenspan ( older image) Alan Greenspan, KBE, PhD (born March 6, 1926) is an American Jew economist and Chairman of the Board of Governors of the Federal Reserve of the United States. ...
The Chairman of the Board of Governors of the United States Federal Reserve is the leader of the central bank of the United States and one of the most important players in American economic policies. ...
Background
Main article: History of Central Banking in the United States This article is about the history of central banking in the United States, including the Federal Reserve. ...
The first institution with responsibilities of a central bank in the US was the First Bank of the United States, chartered in 1791. Later, in 1816, the Second Bank of the United States was chartered. From 1837 to 1862, in the Free Banking Era there was no formal central bank, while from 1862 to 1913, a system of (private) national banks were in charge. After a series of devastating bank runs, it was decided that the US needed a centralized banking system. The First Bank of the United States was proposed by Alexander Hamilton to relieve the war debt from the United States Revolutionary War, develop a national currency, and dispose of the western territories. ...
1791 was a common year starting on Saturday (see link for calendar). ...
1816 was a leap year starting on Monday (see link for calendar). ...
The Second Bank of the United States was founded in 1816, five years after the expiration of the First Bank of the United States out of desperation to stabilize the currency. ...
1837 was a common year starting on Sunday (see link for calendar). ...
1862 was a common year starting on Wednesday (see link for calendar). ...
1862 was a common year starting on Wednesday (see link for calendar). ...
Link title1913 is a common year starting on Wednesday. ...
The term national bank has several meanings: especially in developing countries, a bank owned by the state an ordinary private bank which operates nationally (as opposed to regionally or locally or even internationally) In the past, the term national bank has been used synonymously with central bank, but it is...
A Bank run is a panic response which occurs when a large number of people in a short time take their savings out of a bank, which they fear is financially unsound and about to collapse. ...
The Fed was created by the U.S. Congress through the passing of the Owen-Glass Act, signed by President Woodrow Wilson on December 23, 1913. Seal of the Congress. ...
The Federal Reserve Act of 1913, also called the Glass-Owen Bill, established the Federal Reserve System in the United States. ...
Dr. Thomas Woodrow Wilson (December 28, 1856–February 3, 1924) was the 28th President of the United States (1913–1921). ...
December 23 is the 357th day of the year in the Gregorian Calendar (358th in leap years). ...
Link title1913 is a common year starting on Wednesday. ...
Roles and responsibilities The main tasks of the Federal Reserve are: - Supervise and regulate banks
- Implement monetary policy by buying and selling US Treasury securities
- Maintain a strong payments system
- Control the amount of money that is made and destroyed on a day to day basis
Other tasks include: Monetary policy is the process of managing a nations money supply to achieve specific goals—such as constraining inflation, achieving full employment or more well-being. ...
Treasury Securities are bonds issued by the U.S. Treasury, and sold by the Federal Open Market Committee, or FOMC. They are the debt finance instruments of the Federal government, and are often referred to as treasuries. ...
- Economic research
- Economic education
- Community outreach
Organization of the Federal Reserve
 Federal Reserve headquarters, Eccles Building, Washington, DC. The Federal Reserve is comprised of a board of governors. The 7 members of the board are appointed by the President and confirmed by the Senate. Members are elected to terms of 14 years, with the ability to serve for no more than one term. A governor may serve the remainder of another governor's term in addition to their own full term. The Federal Open Market Committee (FOMC) comprises the 7 members of the board of governors and 5 representatives selected from the Federal Reserve Banks. The representative from the 2nd District, New York, is a permanent member, while the rest of the banks rotate on two and three year intervals. From federalreserve. ...
From federalreserve. ...
The President of the United States (often abbreviated POTUS) is the head of state of the United States. ...
Seal of the Senate The United States Senate is one of the two houses of the Congress of the United States, the other being the House of Representatives. ...
The Federal Open Market Committee (FOMC) is charged under the law with overseeing open market operations, the principal tool of national monetary policy. ...
Federal Reserve Districts The United States Federal Reserve System consists of twelve Federal Reserve Banks, each responsible for a particular district, and some with branches. ...
State nickname: Empire State Other U.S. States Capital Albany Largest city New York Governor George Pataki (R) Official languages None (English is de facto) Area 141,205 km² (27th) - Land 122,409 km² - Water 18,795 km² (13. ...
The current members of the Board of Governors are: A Board of Governors is the board of directors of a publicly owned corporation, such as the United States Postal Service and Amtrak. ...
Alan Greenspan ( older image) Alan Greenspan, KBE, PhD (born March 6, 1926) is an American Jew economist and Chairman of the Board of Governors of the Federal Reserve of the United States. ...
Roger W. Ferguson, Jr. ...
Susan Bies Susan Schmidt Bies (born May 5, 1947) is a member of the Board of Governors of the Federal Reserve Board. ...
Don Kohn Donald L. Kohn (born November 7, 1942) is a member of the Board of Governors of the Federal Reserve Board. ...
Mark Olson Mark W. Olson (born May 17, 1943) is a member of the Board of Governors of the Federal Reserve Board. ...
Interest rates
The effective federal funds rate charted over fifty years The Federal Reserve implements monetary policy largely by attempting to steer the federal funds rate, also called the overnight rate. The Federal Reserve roughly has the power to set the federal funds rate by fiat. In theory due to risk considerations, M0 injected by the Federal Reserve to lower money market rates need not find itself into the banking system. The money market rate/fed funds rate is the interest rate that banks charge each other for overnight loans to one another. This in turn influences the prime rate which is usually about 3 percentage points higher than the federal funds rate. This prime rate is the rate that most banks price their loans at for their best customers. Description: Historical chart of the U.S. federal funds rate. ...
Description: Historical chart of the U.S. federal funds rate. ...
The federal funds rate is the interest rate at which depository institutions lend balances (federal funds) at the Federal Reserve to other depository institutions overnight. ...
Definition In North American banking, the prime rate is the interest rate charged by lenders to borrowers who they consider most creditworthy. ...
Lower interest rates stimulate economic activity by lowering the cost of borrowing, making it easier for consumers and businesses to buy and build. Higher interest rates slow the economy by increasing the cost of borrowing. (See monetary policy for a fuller explanation.) Monetary policy is the process of managing a nations money supply to achieve specific goals—such as constraining inflation, achieving full employment or more well-being. ...
The Federal Reserve usually adjusts the federal funds rate by 0.25 or 0.50 percentage points at a time. From early 2001 to mid 2003 the Federal Reserve lowered its interest rates 13 times, from 6.25 to 1.00 percent, to fight recession. In November 2002, rates were cut to 1.75, and many interest rates went below the inflation rate. On June 25, 2003, the federal funds rate was lowered to 1.00 percent, its lowest nominal rate since July, 1958, when the overnight rate averaged 0.68 percent. Starting at the end of June, 2004, the Federal Reserve started to raise the target interest rate in response to concerns about the potential for increased inflation from a too-active economy. As of August 2005, the rate is at 3.5 percent; this is the result of a series of 10 .25 percent increases. 2001: A Space Odyssey. ...
2003(MMIII) is a common year starting on Wednesday of the Gregorian calendar. ...
A recession is usually defined in macroeconomics as a fall of a countrys real Gross National Product in two or more successive quarters of a year. ...
For other uses, see November (disambiguation). ...
2002(MMII) is a common year starting on Tuesday of the Gregorian calendar. ...
June 25 is the 176th day of the year (177th in leap years) in the Gregorian Calendar, with 189 days remaining. ...
2003(MMIII) is a common year starting on Wednesday of the Gregorian calendar. ...
1958 was a common year starting on Wednesday of the Gregorian calendar. ...
June is the sixth month of the year in the Gregorian Calendar and one of four with the length of 30 days. ...
2004 is a leap year starting on Thursday of the Gregorian calendar. ...
The Federal Reserve has limited impact on longer-term interest rates. It can use open market operations to cause marginal changes in market yields, but its "buying power" on the market is significantly smaller than private institutions. The Fed can also attempt to "jawbone" the markets into moving towards the Fed's desired rates, but this is not always effective. Open Market Operations are the means by which central banks control the liquidity of the national currency. ...
The Reserve Banks The twelve regional Federal Reserve Banks, which were established by the Congress as the operating arms of the nation's central banking system, are organized much like private corporations—possibly leading to some confusion about “ownership.” For example, the Reserve Banks issue shares of stock to member banks. However, owning Reserve Bank stock is quite different from owning stock in a private company. 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 or traded or pledged as security for a loan; dividends are, by law, limited to 6 percent per year.[1] based on usgs map - no copyright - coloration by me This image has been released into the public domain by the copyright holder, its copyright has expired, or it is ineligible for copyright. ...
based on usgs map - no copyright - coloration by me This image has been released into the public domain by the copyright holder, its copyright has expired, or it is ineligible for copyright. ...
The dividends paid to member banks are considered partial compensation for the lack of interest paid on member banks' required reserves held at the Fed. By law, banks in the United States must maintain fractional reserves, most of which are kept on account at the Fed. The Federal Reserve does not pay interest on these funds.
The Federal Reserve System was created via the Federal Reserve Act of 1913 which "established a new central bank designed to add both flexibility and strength to the nation's financial system. The legislation provided for a system that included a number of regional Reserve Banks and a seven-member governing board. All national banks were required to join the system and other banks could join. The Reserve Banks opened for business in November 1914. Congress created Federal Reserve notes to provide the nation with an elastic supply of currency. The notes were to be issued to Reserve Banks for subsequent transmittal to banking institutions in accordance with the needs of the public.
The Federal Reserve Districts are as follows:
- Boston
- New York
- Philadelphia
- Cleveland
- Richmond
- Atlanta
- Chicago
- St Louis
- Minneapolis
- Kansas City
- Dallas
- San Francisco
The Federal Reserve Bank of Boston is responsible for the First District of the Federal Reserve, which covers Connecticut (excluding Fairfield County), Massachusetts, Maine, New Hampshire, Rhode Island and Vermont. ...
The Federal Reserve Bank of New York is one of the twelve Federal Reserve Banks of the United States, and is located in Albany in New York State. ...
The Federal Reserve Bank of Philadelphia, headquartered in Philadelphia, Pennsylvania, is responsible for the Third District of the Federal Reserve, which covers eastern Pennsylvania, southern New Jersey, and Delaware. ...
The Federal Reserve Bank of Cleveland. ...
The Federal Reserve Bank of Richmond is the headquarters of the Fifth District of the Federal Reserve. ...
The Federal Reserve Bank of Atlanta is responsible for the 6th District of the Federal Reserve, which covers Alabama, Florida, Georgia, and parts of Louisiana, Mississippi, and Tennessee. ...
Federal Reserve Bank of Chicago, located at the corner of LaSalle and Jackson streets. ...
The Federal Reserve Bank of St. ...
Federal Reserve Bank of Minneapolis The Federal Reserve Bank of Minneapolis covers the 9th District of the Federal Reserve, including Minnesota, Montana, North and South Dakota, northwestern Wisconsin, and the Upper Peninsula of Michigan. ...
Front of the Federal Reserve Bank of Kansas City The Federal Reserve Bank of Kansas City covers the 10th District of the Federal Reserve, which includes Colorado, Kansas, Nebraska, Oklahoma, Wyoming, and portions of western Missouri and northern New Mexico. ...
The Federal Reserve Bank of Dallas covers the Eleventh Federal Reserve District, which includes Texas, northern Louisiana and southern New Mexico. ...
The facade of the Federal Reserve Bank of San Francisco. ...
Legal Status and Position in Government The Federal Reserve System is an "independent entity within the government". It subjects itself to laws such as the Freedom of Information Act and the Privacy Act which cover Federal agencies, not private entities. However, its decisions do not have to be ratified by the President or anyone else in the executive or legislative branches of government, it does not receive funding appropriated by the Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms. Once a member of the Board of Governors is appointed by the president, he or she can be as independent as a U.S. Supreme Court judge, though the term is shorter. Nearly sixty countries around the world have implemented some form of freedom of information legislation, which sets rules on governmental secrecy. ...
The President of the United States (often abbreviated POTUS) is the head of state of the United States. ...
A legislature is a governmental deliberative body with the power to adopt laws. ...
The Supreme Court Building, Washington, D.C. The Supreme Court Building, Washington, D.C., (large image) The Supreme Court of the United States, located in Washington, D.C., is the highest court (see supreme court) in the United States; that is, it has ultimate judicial authority within the United States...
In the 1982 case Lewis v. United States, the Ninth Circuit Federal Court of Appeals stated that the "Federal reserve banks are not federal instrumentalities for purposes of a Federal Torts Claims Act, but are independent, privately owned and locally controlled corporations." The opinion also stated that "the Reserve Banks have properly been held to be federal instrumentalities for some purposes." United States Court of Appeals for the Ninth Circuit - Wikipedia, the free encyclopedia /**/ @import /skins-1. ...
Influence of Government The Federal Reserve is financially independent because it runs a surplus, due in part to its ownership of government bonds. In fact, it returns billions of dollars to the government each year. However, the Fed is still subject to oversight by the Congress, which periodically reviews its activities and can alter its responsibilities by statute. To further communication with Congress, the Fed delivers a report to both houses semiannually. Its independence from the executive branch was confirmed by the 1951 Accord. In general, the Federal Reserve must work within the framework of the overall objectives of economic and financial policy established by the government. For alternate meanings, such as chemical bond, see Bond (disambiguation). ...
A statute is a formal, written law of a country or state, written and enacted by its legislative authority, perhaps to then be ratified by the highest executive in the government, and finally published. ...
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Under the doctrine of the separation of powers, the executive is the branch of a government charged with implementing, or executing, the law. ...
The 1951 Accord, also known simply as the Accord, was an agreement between the U.S. Department of the Treasury and the Federal Reserve restoring independence to the Fed. ...
Fractional-Reserve Banking In its role of setting reserve requirements for the country's banking system, the Fed regulates what is known as fractional-reserve banking. This is the common practice by banks of retaining only a fraction of their deposits to satisfy demands for withdrawals, lending the remainder at interest to obtain income that can be used to pay interest to depositors and provide profits for the banks' owners. Some people also use the term to refer to fiat money, which is money that is not backed by a tangible asset such as gold. See fractional-reserve banking for more information and criticism. In economics, particularly in financial economics, fractional-reserve banking is the near-universal practice of banks of retaining only a fraction of their deposits and notes as reserves to satisfy demands for withdrawals, investing the remainder at interest to obtain income that can be used to pay interest to depositors...
Fiat money or fiat currency, is money such as paper money, that is current or legal tender as satisfaction for money debts by government fiat, that is by artificial law. ...
General Name, Symbol, Number gold, Au, 79 Chemical series transition metals Group, Period, Block 11, 6, d Appearance metallic yellow Atomic mass 196. ...
In economics, particularly in financial economics, fractional-reserve banking is the near-universal practice of banks of retaining only a fraction of their deposits and notes as reserves to satisfy demands for withdrawals, investing the remainder at interest to obtain income that can be used to pay interest to depositors...
Criticism -
 The neutrality of this section is disputed. Please view the article's talk page. Criticism of the Federal Reserve includes general criticism of central banking and fractional-reserve banking as well as criticism specific to the Fed. Some popular theories of the ways in which it harms the U.S. economy are: Wikipedia does not have an article with this exact name. ...
In economics, particularly in financial economics, fractional-reserve banking is the near-universal practice of banks of retaining only a fraction of their deposits and notes as reserves to satisfy demands for withdrawals, investing the remainder at interest to obtain income that can be used to pay interest to depositors...
- It makes a profit by "skimming" a small percent of the $11 trillion U.S. economy. Although the Federal Reserve does charge member banks for its services, it claims to give the proceeds back in the form of dividends to the banks and the government; this claim, however, has never been proven true in an audit of the Federal Reserve's book-keeping. Various conspiracy theories claim that either reserve employees or secret persons steal this money.
- It redistributes wealth through the sales and purchase of the U.S. national debt (currently about $8 trillion).
- It redistributes wealth through the collection of interest on all money in circulation and the creation of inflation and deflation to produce business cycles. The Great Depression was created when the Federal Reserve Banks severely contracted the money supply.
- It redistributes wealth through the process of inflation.
- It fixes currency exchange rates with other country central banks throughout the world
- It has cartelized the banking industry
- It's creation as a private organization was the result of a criminal conspiracy.
Another criticism is that the U.S. Congress has unconstitutionally transferred to a private corporation its power "to coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures" (from Article 1, Section 8, Clause 5 of the U.S. Constitution). Overview The United States has the largest economy by country, second-largest by economic union (after the EU), and most technologically powerful economy in the world, with a per capita GDP of $39,689 (2nd Quarter 2004 annualized) . In this market-oriented economy, private individuals and business firms make most...
The U.S. public debt is the amount of money that the United States federal government (not the states or banks or corporations or individuals) owes. ...
Deflation (economics) Deflation (data compression) Deflation is the removal of loose soil by eolian (wind) processes This is a disambiguation page — a navigational aid which lists other pages that might otherwise share the same title. ...
An abstract business cycle The business cycle or economic cycle refers to the ups and downs seen somewhat simultaneously in most parts of an economy. ...
This article needs to be cleaned up to conform to a higher standard of quality. ...
Money supply (monetary aggregates, money stock), a macroeconomic concept, is the quantity of money available within the economy to purchase goods, services, and securities. ...
Wealth usually refers to money and property. ...
A cartel is a group of producers whose goal it is to fix prices, to limit supply and to limit competition. ...
For other uses, see Bank (disambiguation). ...
Jekyll Island is an island off the coast of the U.S. state of Georgia, in Glynn County; it is one of the Sea Islands and one of Golden Isles of Georgia. ...
Seal of the Congress. ...
Some of these critics say that the U.S. Congress created the Federal Reserve System to control money through inflation, high interest rates, and outright taxation through the creation of liens and bonds paid for by U.S. citizens. These critics argue that, through unconstitutional changes in law, the words income (corporations) and wage (people's paychecks) were redefined. The Internal Revenue Service could force U.S. citizens to pay taxes, fees, and fines under penalty of law. Seal of the Congress. ...
The Internal Revenue Service (IRS) is the United States government agency that collects taxes and enforces the tax laws. ...
Other critics, like Austrian School economists, conclude that the Federal Reserve and the federal government partner to confiscate wealth from those who earned it. The government can create money to purchase goods and services, thus diverting resources away from those who would have otherwise consumed them and devaluing existing money. This, according to those economists, amounts to a "hidden tax". Newly created money can also be lent by banks who are then owed interest payments, money which can then be spent on real goods, again consuming resources which would have otherwise been consumed by others. Because paper money is intrinsically worthless, printing new money can only redistribute existing wealth rather than actually creating new wealth, according to this branch of economics. The Austrian School is a school of economic thought which rejects opposing economists reliance on methods used in natural science for the study of human action, and instead bases its formalism of economics on relationships through logic or introspection called praxeology. ...
Finally, there is a theory that the Federal Reserve is not neutral with regard to U.S. elections and tends to lower or rasise interest rates to benefit or harm certain candidates. Alan Greenspan has described himself as a conservative, even going so far as to laud Ayn Rand's brand of economic individualism. Under his watch, interest rates have consistently been lowered when a Republican president was up for election, and raised prior to Democratic presidents being up for election. Interest rates rose steadily before the 2000 election and were reduced to 40-year lows before the 2004 election. (Redirected from 2000 election) List of elections that happened in 2000: Canadian federal election, 2000 - Jean Chrétiens Liberals win third consecutive majority government Greek legislative election, 2000 Taiwan presidential election, 2000 U.S. presidential election, 2000 - George W. Bush becomes president in disputed vote 2000 Toronto election - Mel...
There are many different elections taking place in 2004. ...
Possible Reforms for the Federal Reserve System -
The neutrality of this section is disputed. Please view the article's talk page.
- Abolish the Discount Rate. Presently the Federal Reserve guaranties a line of credit to troubled banks at very low interest rates. Because government does not offer low interest rates to individuals that face financial troubles, the discount rate is a form of corporate welfare.
- Abolish the FDIC. Banks operate by borrowing short term loans and issuing long term credit. This is inherently unstable, risky, and akin to gambling. By the government guaranteeing deposits, they are externalizing banking risks onto the general public. The other problem with the FDIC is that it lacks the ability to cover aggregate insured deposits (no more then a couple percent). In an actual crisis, the Fed would have to bail out the system, thus causing inflation.
- The Federal Reserve should not hire from the private banking sector and should prohibit former Fed member from entering the private financial sector after working at the Fed. This is said to be a conflict of interest: the insane are running the insane asylum. Banks can reward Fed employees with lucrative private sector jobs, which is a conflict of interest. As the Fed is supposed to regulate the banking industry, a large number of former bank employees working for the Fed is an example of synergy, if not collusion.
- There would be no 'no bank is too big to fail'. This is a present Fed policy to bail out the biggest banks in trouble. What this does is encourage control of banking by big banks, and externalizes risk to the public to be bailed out through taxes or indirectly through inflation.
- Integrate seigniorage and monetary policy of coins, notes, and Fed deposits. Why?: Presently the Federal Reserve controls the issues of federal reserve notes and bank accounts at the federal reserve. For historical reasons, the treasury controls the issuance of US notes and coins. It makes no sense to split the two between the Treasury and the Fed.
- The Fed would not issue shares or voting rights to member banks. Why?: As a public institution it is wrong for a small for-profit segment of society to have undue influence at the expense of others.
- Private bankers should not have private access to the Federal Reserve employees that the public does not. This allows an unfair lobbying advantage for banks, and gives them unfair clues as to what future federal fund rates will be.
- Abolish the Federal Reserve Dividend. The 6% dividend is an attractive source of income for banks because it is risk-free and a predictable source of income. The public through the Federal Reserve should not be subsidizing dividends for private banks.
- Remove corporate debt protections for banks. Corporate protections allow banks to externalize risks and internalize profits. So even if depositors lose their deposits, under the present system, the bankers could keep their mansions. This system rewards them: heads the bankers win; tails the bankers break even.
- Enable equal access to virtual M0. Presently only private banks can obtain federal reserve accounts at the Federal Reserve. This allows private banks to markup this access to individual borrowers and depositors. A solution would be to allow any individual the ability to have an account at the Federal Reserve.
- Increase the number of certified sellers and buyers to the open market. This would be to insure the public gets a fair deal on open market transactions. Of late, the number of 'primary dealers' has fallen, and is now down to roughly 22, which is not competitive enough.
- The Fed should not restrict its open market purchases to US debt. This is because the government lacks the ability to acquire the information needed to determine aggregate investment and this is best left up to private individuals. An individual could get a much better return paying off their 20%+ credit card debts, than investing (through the Fed) on government securities.
- Remove float. Why?: Because it gives an unfair advantage to banks, because they have access to this money creation while individuals don't.
- Remove Fed independence (perhaps make it sub-department of the treasury). This is needed to make it more accountable to the public.
- Aggregate banking solvency should not be a consideration in determining monetary policy. By lowering the federal funds rate to accommodate the banking industry in downtimes, the public is subsidizing and encouraging bank risk, which is corporate welfare.
- Foreign banks should cease to hold federal reserve accounts, federal reserve notes, and dollar denominated assets. Dollar hegemony is a holdover from the '40s when the US, through its control of the gold supply, its influence on the many post WWII governments it setup, agreement with Arabs to sell oil only in dollars, and through the Bretton Woods agreement. This arrangement is giving these countries below market interest rates on their assets and makes the US vulnerable to sudden market corrections.
- Abolish Treasury Tax and Loan accounts. Under the guise of maintaining stable interest rates, the treasury deposits tax receipts into select private banks. This is in affect a below market rate loan to these special select banks, and an indirect inflation tax on the public.
- Abolish Capital and Reserve requirements. These requirements allow banks to cartel their operations, and give the public a misleading idea of how banking works.
- The Fed would receive its operating budget from congress. Why?: To ensure the Fed doesn't overspend, and gives congress better oversight over Fed activities.
- Make the Fed more transparent. This would allow more public oversight of what is supposed to be a public institution. It would also allow the public access to critical fed information at the same time that financial insiders hear about it.
- Abolish research operations of the Fed. The Fed is wasting a lot of money on information that can never be adequate in determining monetary policy.
- The Fed should not help countries out in dire trouble. This externalizes risk and really ends up helping the big private banks that made loans to these countries.
- The Fed should stop using money market rates to determine monetary policy. This causes reverse cause and effect, where the government relies on the market for price signals, therefore the market controls through its signals, monetary policy. For example, many like Milton Friedman have argued that primary dealers are engaging in churning, as Fed volume in trades actually dwarfs the actually annual change in security assets.
- The interest collected by the Fed should be used for public projects and not given to its private controlling interests.
Wikipedia does not have an article with this exact name. ...
The term discount rate is used in several different contexts: mathematical discount rate, monetary policy, and project valuation. ...
An interest rate is the rental price of money. ...
Corporate welfare is a pejorative term first coined by Ralph Nader in 1956 to describe a governments bestowal of grants and/or tax breaks on one or more corporations or other special favorable treatment from the government. ...
The Federal Deposit Insurance Corporation (FDIC) was created by the Glass-Steagall Act of 1933. ...
A loan is a type of debt. ...
The term credit can have several meanings in different contexts. ...
Main article deposit (bank) A deposit is a specific sum of money taken and held on account, by a bank as a service provided for its clients. ...
Synergy or synergism, most often refers to the phenomenon of two or more discrete influences or agents acting in common to create an effect which is greater than the sum of the effects each is able to create independently. ...
In the study of economics, collusion takes place within an industry when rival companies cooperate for their mutual benefit. ...
Seigniorage, also spelled seignorage, is the net revenue derived from the issuing of currency. ...
Monetary policy is the process of managing a nations money supply to achieve specific goals—such as constraining inflation, achieving full employment or more well-being. ...
The word share can refer to: A share of a stock or other security such as a mutual fund. ...
Voting rights refers to the right of a person to vote in an election. ...
Lobbying is the practice of private advocacy with the goal of influencing a governing body, in order to ensure that an individuals or organizations point of view is represented in the government. ...
This article does not cite its references or sources. ...
In economics, the Open Market is the term used to refer to the environment in which bonds are bought and sold. ...
Credit card debt is another example of unsecured debt. ...
In economics, Float makes up the smallest part of the money supply. ...
1922 U.S. gold certificate The gold standard is a monetary system in which the standard economic unit of account is a fixed weight of gold and currency issuers guarantee, under specified rules, to redeem notes in that amount of gold. ...
German soldiers at the Battle of Stalingrad World War II was the most extensive and costly armed conflict in the history of the world, involving the great majority of the worlds nations, being fought simultaneously in several major theatres, and costing tens of millions of lives. ...
The Arabs (Arabic: عرب ʻarab) are an originally Arabian ethnicity widespread in the Middle East and North Africa. ...
Oil is a generic term for organic liquids that are not miscible with water. ...
Wikipedia does not have an article with this exact name. ...
Treasury Tax and Loan Serviceis a service in the US that keeps tax receipts in the banking sector by depositing them into select banks that meet certain criteria. ...
A cartel is a group of producers whose goal it is to fix prices, to limit supply and to limit competition. ...
A government corporation or government-owned corporation is a legal entity created by a government to exercise some of the powers of the government. ...
The money market is a general term for the markets in which banks lend to and borrow from each other, trade financial instruments such as Certificates of Deposit (CDs) or enter agreements such as Repos and Reverses. ...
Further reading - Griffin, Edward G. (1998). "The Creature from Jekyll Island:A second look at the Federal Reserve". American Media. ISBN 0912986212.
- Greider, William (1987). Secrets of the Temple. Simon & Schuster. ISBN 0671675567; a book intended for lay readers explaining the structures, functions, and history of the Federal Reserve, focusing specifically on the tenure of Paul Volcker
- Epstein, Lita & Martin, Preston (2003). The Complete Idiot's Guide to the Federal Reserve. Alpha Books. ISBN 0028643232.
- Meyer, Lawrence H (2004). A Term at the Fed : An Insider's View. HarperBusiness. ISBN 0060542705; focuses on the period from 1996 to 2002, emphasizing Alan Greenspan's chairmanship during the Asian financial crisis, the stock market boom and the financial aftermath of the September 11 attacks
- Rothbard, Murray N. (1994). The Case Against the Fed. Ludwig Von Mises Institute. ISBN 094546617X.
Paul Adolph Volcker (born September 5, 1927), economist, is best-known as the Chairman of the Federal Reserve under United States Presidents Jimmy Carter and Ronald Reagan (from August 1979 to August 1987). ...
Alan Greenspan ( older image) Alan Greenspan, KBE, PhD (born March 6, 1926) is an American Jew economist and Chairman of the Board of Governors of the Federal Reserve of the United States. ...
The Asian financial crisis was a financial crisis that started in July 1997 in Thailand, and affected currencies, stock markets, and other asset prices of several Asian countries, many part of the East Asian Tigers. ...
Dot-com (also dotcom or redundantly dot. ...
The September 11, 2001 Terrorist Attacks were a series of suicide attacks against civilians of the United States conducted on Tuesday, September 11, 2001. ...
The September 11, 2001 Terrorist Attacks were a series of suicide attacks against civilians of the United States conducted on Tuesday, September 11, 2001. ...
See also The discount window is used by a nations monetary authority to extend/cancel loans to financial institutions. ...
United States Economics indicators that are reported by US government agencies. ...
Federal Reserve Districts The United States Federal Reserve System consists of twelve Federal Reserve Banks, each responsible for a particular district, and some with branches. ...
In 1936 the U.S. Treasury Department began construction of the United States Bullion Depository at Fort Knox, Kentucky on land deeded from the military. ...
1922 U.S. gold certificate The gold standard is a monetary system in which the standard economic unit of account is a fixed weight of gold and currency issuers guarantee, under specified rules, to redeem notes in that amount of gold. ...
Government debt (public debt, national debt) is money owed by government, at any level (central government, federal government, national government, municipal government, local government, regional government). ...
The money market is a general term for the markets in which banks lend to and borrow from each other, trade financial instruments such as Certificates of Deposit (CDs) or enter agreements such as Repos and Reverses. ...
Federal Funds transactions redistribute bank reserves. ...
Repurchase agreements (RPs or Repos) are financial instruments used in the money markets. ...
Monetary policy is the process of managing a nations money supply to achieve specific goals—such as constraining inflation, achieving full employment or more well-being. ...
Money supply (monetary aggregates, money stock), a macroeconomic concept, is the quantity of money available within the economy to purchase goods, services, and securities. ...
Open Market Operations are the means by which central banks control the liquidity of the national currency. ...
The National Economic Stabilization And Recovery Act or NESARA is a proposal for legislation to address fiscal policy, monetary policy, and monetary system reform in the United States of America. ...
External links It is interesting to note that the Fed owns http://www.centralbank.us/ but never bothered to register http://www.bancocentral.us/ (Spanish-language version).
Articles
History - A Foregone Conclusion - St. Louis Fed
- Federal Reserve Bank of Minneapolis - The Region - Paul Warburg's Crusade to Establish a Central Bank in the United States (May 1989)
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