---

Acquiring Central Bank Information Takes Some Digging Because the Private Owners of the Federal Reserve Have a Lot to Hide. Learn Why We Must Abolish the Fed Today.

---

One item of central bank information that isn’t too hard to find is the publicly stated task assigned to such central banks as the U.S. Federal Reserve System.

A central bank is intended to oversee the monetary policy of a nation, or in some cases a group of states.

With this task comes the title of quasi-public institution, meaning that a central bank such as the Federal Reserve seems to be public or resembles a public institution.

The central bank of any country is supposed to be structured so that there is minimal political interference.

Insulation from politics and interference from outside forces seems to indicate a willingness on the part of organizers to keep the system not only independent but also uncorrupted.

Among the tasks at the top of the central bank information list are monetary policy, control of the country’s money supply and foreign exchange, and setting the interest rate that is considered official in the nation’s financial community.

A central bank holds assets and offsets these with the primary liability of the currency in circulation.

The bank earns money by issuing the currency notes and lending them to the public.

In addition, the central bank sets and controls interest rates used by banks and in the stock market, though even this power would seem to be limited.

---

---

Interest Rates Most Visible

One of the much-discussed myths about interest rates and central bank information is that the bank sets the rate by picking a good number.

The truth is a bit more complicated, in that the Federal Reserve System actually sets a rate that is closely tied to the central bank’s ability to create money.

Rather than the currency of the country being tied to anything of solid value, as it used to be with gold, the currency has value only because the people in charge say that it does.

The original Bretton Woods system tied the dollar to a certain amount of gold, but this was eventually abandoned because there wasn’t enough gold to back the money supply needed to keep people active in the economic system.

---

Worldwide Credit

Across the globe in the 21st century, currency that has a value assigned to it by the central bank is traded as a commodity in itself.

Among the details of central bank information many don’t understand is the ability of the Federal Reserve and the U.S. government to make their assets more or less valuable by declaring them to have a certain value.

The key is whether the value of any currency can be converted to something of physical and equal value, or whether it can be converted to another paper asset of similar value.

Many criticized the concept of fiat currency as the base cause for the boom and bust cycles experienced in several countries, including the United States.

How is this system structured to deal with monetary policy, interest rates and foreign exchange?

---

Organization Chart for Federal Reserve System

The system is governed by a Board of Governors, with seven members appointed by the President of the United States. One member is appointed from each of the twelve Federal Reserve Districts.

Each Federal Reserve Bank has its own nine-member Board of Directors.

These banks generate their own income from interest and from providing services, for a price, to financial institutions that deposit with the Federal Reserve.

According to a 1980 law, these banks are not operated for a profit, but must return everything more than costs and expenses to the U.S. Treasury.

This piece of central bank information is at the heart of the controversy.

But critics of the system note that the Federal Reserve System began with a few hundred individuals or banks purchasing shares, with profits intended to be funneled to these shareholders.

Arguments continue as to where the profits actually go.

Some emphasize that the operating expenses and costs that are retained by banks are excessive, in that quite a bit is retained to pay huge salaries and back expense accounts for directors.

The arguments are not usually about whether the Federal Reserve Banks are privately owned, but more about how the banks operate and how they are audited.

If you wish to help put their scam to an end, please join a DTSS freedom program today.

---

---