The Federal Reserve is an entity unto itself with no oversight and no accountability. It is out of control.
The Federal Reserve System, also known as "The Fed," is the central bank of the United States -- a bank for other banks and a bank for the federal government created to provide the nation with a safer, more flexible, and more stable monetary and financial system. Over the years, its role in banking and the economy has expanded. The Federal Reserve System is a network of twelve Federal Reserve Banks and a number of branches under the general oversight of the Board of Governors. The Reserve Banks are the operating arms of the central bank.
- The GDP of the United States is only $14.12 trillion.
- The entire national debt of the United States government spanning its 200+ year history is only $14.5 trillion.
- The budget that is being debated so heavily in Congress and the Senate is only $3.5 trillion.
- Take all of the outrage and debate over the $1.5 trillion deficit into consideration.
- SWALLOW THIS RED PILL: There was no debate about whether $16,000,000,000,000 would be given to failing banks & corporations around the world.
In late 2008, the TARP Bailout bill was passed and loans of $800 billion were given to failing banks and companies. That was a blatant lie considering the fact that Goldman Sachs alone received 814 billion dollars. As is turns out, the Federal Reserve donated $2.5 trillion to Citigroup, while Morgan Stanley received $2.04 trillion. The Royal Bank of Scotland and Deutsche Bank, a German bank, split about a trillion and numerous other banks received hefty chunks of the $16 trillion.
"This is a clear case of socialism for the rich and rugged, you-are-on-your-own individualism for everyone else." - Bernie Sanders(I-VT)
Note that JPMorgan Chase, Bank of America, and Citigroup are among the top four foreclosing bank entities in the United States of America.
Boardroom of the Federal Reserve
Members of the Board
Ben S. Bernanke
Janet L. Yellen
Elizabeth A. Duke
Daniel K. Tarullo
Sarah Bloom Raskin
Federal Reserve Bank Presidents
- Boston Eric S. Rosengren
- New York William C. Dudley
- Philadelphia Charles I. Plosser
- Cleveland Sandra Pianalto
- Richmond Jeffrey M. Lacker
- Atlanta Dennis P. Lockhart
- Chicago Charles L. Evans
- St. Louis James Bullard
- Minneapolis Naryad Kocherlakota
- Kansas City Esther George
- Dallas Richard W. Fisher
- San Francisco John C. Williams
The Federal Reserve Act provides that the president of a Federal Reserve Bank shall be the chief executive officer of the Bank, appointed by the board of directors of the Bank, with the approval of the Board of Governors of the Federal Reserve System, for a term of five years. The Federal Reserve Board of Governors is located in Washington, D.C.
The terms of all the presidents of the twelve District Banks run concurrently, ending on the last day of February of years numbered 6 and 1 (for example, 2001, 2006, and 2011). The appointment of a president who takes office after a term has begun ends upon the completion of that term. A president of a Reserve Bank may be reappointed after serving a full term or an incomplete term.
Reserve Bank presidents are subject to mandatory retirement upon becoming 65 years of age. However, presidents initially appointed after age 55 can, at the option of the board of directors, be permitted to serve until attaining ten years of service in the office or age 70, whichever comes first.
The modern federal banking system traces its origins to 1791, when Congress, at the urging of Treasury Secretary Alexander Hamilton, established the First Bank of the United States. Headquartered in Philadelphia, the bank was given a twenty year charter, but many agrarian-minded Americans, uncomfortable with the idea of a large and powerful central bank, opposed it and Congress refused — by one vote — to renew it in 1811.
Congress once again created a central bank in 1816, in response to the inflation that resulted from the increase in banknotes printed to pay off the debt occasioned by the War of 1812. A little more than ten years after its opening, however, the new bank came into the cross hairs of Andrew Jackson, who worked to kill it after he was elected president in 1828. Jackson argued that the bank was corrupt and a threat to American liberties. In 1836, the Second Bank's charter was not renewed.
After the demise of the second bank, state-chartered and uncharted "free banks" took root. These banks issued their own notes, redeemable in gold or silver. Though the National Banking Act, passed in 1863, tried to provide a measure of currency stability, bank runs and financial panics remained common into the early 20th century. A bout of speculation on Wall Street that bottomed out in 1907, above, triggered a banking panic that led to calls to reform the banking system.
Congress created the Federal Reserve System on December 23, 1913, with the signing of the Federal Reserve Act by President Woodrow Wilson. The Federal Reserve System includes the Board of Governors and the twelve regional Reserve Banks. It took nearly a year from the time President Wilson signed the Act to determine the boundaries of the twelve Federal Reserve Districts and to establish the twelve regional Reserve Banks.
The seven members of the Board of Governors of the Federal Reserve System are nominated by the President and confirmed by the Senate. A full term is fourteen years. One term begins every two years, on February 1 of even-numbered years. A member who serves a full term may not be reappointed. A member who completes an unexpired portion of a term may be reappointed. All terms end on their statutory date regardless of the date on which the member is sworn into office.
The Chairman and the Vice Chairman of the Board are named by the President from among the members and are confirmed by the Senate. They serve a term of four years. A member's term on the Board is not affected by his or her status as Chairman or Vice Chairman.
Despite the best intentions of the Federal Reserve Act, speculation on Wall Street continued apace, leading to a spectacular crash in October of 1929. Scholars have suggested that the massive financial crisis that ensued was made worse by the Fed's unwillingness to inject more money into the economy. In part because of this, nearly 10,000 banks failed between 1930 to 1933. In response to the crisis, Congress passed the Banking Act of 1933, also known as the Glass-Steagall Act, which called for the separation of commercial and investment banking; required the use of government securities as collateral for Federal Reserve notes; and established the Federal Deposit Insurance Corporation (FDIC).
The Federal Reserve System takes in 12 regional reserve banks, each of which handles the needs of its respective region. Often called "Banker's Banks," they supervise the commercial banks in their areas, and store U.S. currency and coin, among other responsibilities.
In 1978, Congress enacted legislation requiring the Federal Reserve Chairman to appear before lawmakers twice a year to discuss monetary policy goals and objectives. Paul Volcker, who was appointed by President Carter as Fed Chairman in 1979, testified before a Senate committee shortly after assuming office. Reappointed by President Reagan four years later, Volcker is widely credited with lowering inflation in the early 1980s.
Appointed by Ronald Reagan in 1987, Greenspan served under four presidents, retiring in 2006. During his almost twenty years as Fed Chairman, investors parsed and analyzed his public statements and countenance for clues about the Fed's plans. His statement that the Fed "affirmed its readiness to serve as a source of liquidity to support the economic and financial system," made shortly after the stock market crashed in 1987, is often credited for controlling the fallout from that crisis.
Having played a critical role in managing the financial crisis of 2008-2009, the Fed must now deal with a new set of challenges. In a speech before the Economic Club of Washington DC, Fed Chairman Ben Bernanke noted that though the worst of the crisis seems to be over, "financial firms must do a better job of managing the risks of their business, regulators — the Federal Reserve included — must complete a thoroughgoing overhaul of their approach to supervision, and the Congress should move forward in making needed changes to our system of financial regulation to avoid a similar crisis in the future. In particular, we must solve the problem of 'too big to fail.'"