Journal chill's Journal: Thoughts on the Federal Reserve 16
Lots of people, including me in the past, love to take the Fed to task as a secretive, manipulative, scam institution who does a job that rightly belongs to Congress.
Last year I had an opportunity to interview for a job at the Chicago Fed in the information security dept. I was interviewed by, among others, an Executive VP and met the Chicago Fed President, who lives a few blocks away from me in Glen Ellyn, IL. I didn't get the job. (Here's a hint, don't apply for a job at a BANK with totally trashed credit. I'd been out of work for a year and my FICO was going negative. Banks don't like that.)
The entire recruitment process took almost 6 months, during which time I did extensive research on who they are, what they do, how they do it, etc. as well as their history. I had already been a big fan of The Money Masters, so wanted to see for myself. Alas, it was not to be, but I did learn a ton of stuff.
A couple of points that seem to be the favorite push-buttons of the anti-fed conspiracy buffs are:
1. The Fed is about as federal as FedEx!
A. This is true, and they make no secret of it. They are quasi-governmental and not an agency of the gov't. This was done in hopes to detach sound monetary policy from the direct influence of politics and politicians. Whether or not this worked is left to an exercise of the reader. Everyone has an opinion.
2. No one knows who actually owns the Fed! The big money families like the Rothschilds, Morgans and Rockefellers are behind them!
A. Actually, the Fed is a member-owned corporation. That is, the State and National banks that are members of the Fed are the ones that own them. No individual persons hold Fed stock. For example, Bank of America is a member and thus partial owner in the Fed. If any big money families are in control of the major banks, then they have indirect investments in the Fed. It doesn't matter, though. They have no say, because the members don't collect dividends.
3. The Fed isn't a "not for profit" and reaps HUGE profits!
A. Yes and no. It is true that the Fed is not a "not for profit" corporation. That is because there are some serious rules about how things are run and they would be meaningless to the Fed. They WANT to make a profit. Guess where it all goes? No, they don't pay it out to their members. Once salaries and operating expenses are taken out, the remainder gets paid DIRECTLY TO THE U.S. TREASURY! On the average 95% of all profits the Fed banks make get paid directly to the Treasury.
This begs the whole "scam to make money for the bankers" question. The bankers AREN'T making serious money on this, the gov't is. The scam is -- and this is why most of Congress doesn't seem to give a shit about the debt -- is that YES the gov't is paying interest on Federal Reserve Notes lent into existence, but they are paying it TO THEMSELVES! The Fed really just acts as the middle-man and collects a fee for handling. What a total scam! But, on the part of the Gov't and not the Fed.
Of course, none of this addresses the real power of the Fed, which is to set monetary policy and manipulating the economy by intentional inflation and deflation of the money supply. Their stated goal is to manage the business cycle, but they've outright admitted that the Great Depression was seriously exacerbated -- if not outright CREATED -- by their monetary policies and manipulations.
But that brings up the question -- looking at the real winners we have in Congress, would we honestly be better off as a nation of those porkers had direct control over the ability to print money? Look at the problems we have now with them just passing bill after bill to "raise the debt ceiling". What good is it to have a credit limit if it can be -- and is -- raised on a whim without consequence?
My opinion of the Fed has shifted from "bad guy" to "magician's assistant/scape goat". Everyone watches them while the real problem is Congress and no fiscal restraint. "Why didn't you stop this crisis, Mr. Fed? Um, because we can't legally tell Congress 'No, we aren't printing you any more money?' If they say 'print' we have to say 'how much'."
thanks (Score:1)
i appreciate hearing from someone who has actually thought about a topic, done some research, and has some real-life experience to offer that is relevant.
that is so rare these days
keep it up, friend
Ciao,
p_c
Re: (Score:2)
Thanks Frylock. I knew there was some funds going somewhere I didn't see. It was too much to be operating expenses and salaries. The 6% to the member banks fills the gap.
I know the banks that took TARP were being charged 8%, instead of their normal 2%, which is one reason they were so eager to pay it back.
I agree about the "too much credit" to the various "usual suspects". A lot of what people attribute to control is simply human nature. The herd just needs to be nudged in the right direction and they'
Re: (Score:2)
Thanks. I have a bit more time now.
What I mean is, a friend of mine is a VP at BoA and he told me they were paying 8% interest to the gov't on the TARP funds when "we are used to paying only 2%" on borrowed money. Quote that. It might not be Fed funds, it might be the normal LIBOR stuff or overnight and short-term borrowing most banks do to keep their reserves in line.
Gotta love that. Many of the bank reserves themselves are borrowed on a short term basis.
Man, I'm glad... (Score:1)
..you didn't wikileak on me. I really don't want everyone to find out it's all been my fault...having my bunker of doom remodeled right now..bad timing...
I am having a hard time really feeling bad about my fellow..earthlings...because we all are taught really a load of stuff and nonsense from birth, then it is daily hammered home. I can't blame cult victims too much for just being normal humans. If brainwashing didn't work, we wouldn't have advertising...and the overlords would have a hard time getting enou
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George Washington, in his farewell address, warned the people about the rise of political parties and the danger they presented. As you can tell, not many people listened.
I agree with the over emphasis of sports and entertainment. Hell, they don't call it the "idiot box" for nothing. And the emphasis people put on sports... I've gotten some SERIOUSLY pissed responses when I say to certain people "it's just a game -- and a kids game at that". :-)
The truth is, the old saw that comes out every high school o
Here's another take (Score:1)
Just an article I found that fits in with this thread
http://www.marketoracle.co.uk/index.php?name=News&file=article&sid=16848 [marketoracle.co.uk]
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Yeah, spot on.
I never claimed things were getting better. :-) Take a peek at last month's housing sales numbers. Look at the mortgages going to reset in 2010 and 2011. Just today the Senate bumped the debt ceiling up another trillion or so. A few days ago the deficit projection was bumped yet again.
I'm only pointing out the Fed is a tool, not the hand doing the screwing itself.
route around the bottlenecks (Score:1)
Bwaa, why I keep trying to bypass that enforced servitude reality. Maybe I am over extrapolating, maybe my little models are wrong, but seems like they screwed the pooch pretty hard, and are now out to spread that "joy" around. I don't see any easy soft landings ahead for most people, they are just way to tied into the system. If the system fails, they fail, no matter how hard they have worked. That part sucks, and what is worse, it never really had to happen short of pure greed running things.
Oh, those mor
almost forgot!!! (Score:1)
You almost worked at the Fed, I *almost* got to work at one of the bilderberger meetings! And I turned it down! Had it in the can and turned it down...Been kicking myself over this since then. The gig was small time, lower pay than another gig I was offered at the time, and I wasn't thinking clearly enough. I should have taken the gig and done my best to be an electronic fly on the wall there. I *think* because of the nature of the gig I could have pulled it off, too.
this one:
http://www.google.com/search?q= [google.com]
Re: (Score:2)
Did I, uh, mention I have a new job and will be relocating to Washington, D.C. next month? :-)
Need to know (Score:1)
Well, that news falls into the "need to know" category, so I..needz to know! BWAHAHAHA! Glad you got a job, no workee/income is rather sucky after all....So, are you going to be a drone, or should we start addressing you as "agent chill"? hehehehe And will you have an emergency bunk reserved for you in...duh bunker [wikipedia.org]??
Re: (Score:2)
Actually, I've just accepted the position of "security specialist" with the US ITC [usitc.gov]. I'll be in charge of network security policy, implementation, forensics, etc. I gotta do some shopping for a new black suit and dark shades!
Yes, unemployment sucks majorly. I can finally eat out and not order off the dollar menu!
That would make you... (Score:1)
.... eSsss eSsss [dramatic pause...] AC
Security Specialist Agent Chill!
You need to look on ebay and find some hokey wallet badge, then business cards "Have nMap..will travel" hehehehe Oh,,, you need a *gray* hat..keep em guessing...
Man, just realized it, last time I dined out and sat down in a restaurant (as in going out to eat, dollar menu or not) was like 3-4 years ago. Lost track. Just don't care for it much anymore, cheap food or expensive food. I have gotten a few takeout fast food meals, drive throug