Is US economy controlled by Federal Reserve Bank?
Who is the most powerful man in the world? Naaaah, it’s not the President of the United States, but Federal Reserve Chairman Ben Bernanke. What the Federal Reserve does is need to control the flow of cash in the economic system. This means that the Federal Reserve has an important role as one of the key functions of the government – to manage the amount of money in the system. Here is how Bernanke and the Fed influences interest rates. They influence the prices by lowering or raising the federal funds. It has a direct impact on short-term rates like the prime rate, and all kinds of T-Bill rates of less than 5 years.
The Federal Reserve is one of the biggest problems America is facing today, and that is ignored and, in fact being made worse, in many respects. The handling of this power by a small group of international bankers jeopardizes our economic engagement and well being. It gives great control to a small group of people whose main interest is profit and power. From its inception until late 1960, the Federal Reserve, with all other central banks around the world, backed paper currency with gold – and then the Vietnam War happened. In fact, the Federal Reserve Act has stolen much more than the United States government stole all the money from all the people of the United States, and even money for their children. U.S. Attorney Tompkins said: “Attempts to undermine the legitimate currency of this country are simply a form of domestic terrorism …”.
Federal Reserve (Fed), a privately held company founded in 1913, was given the right to “print money” for the U.S. government by Congress during the Christmas holidays. At a time when most of the delegates were on vacation. In fact there are many problems facing the United States today. Of course, there have been problems and probably always will be. People may wonder what a federal government bank has to do with the problems of our nation? To begin with and to understand this clearly, the Federal Reserve is not part of our government. It is a private property. Contrary to popular belief people, the Federal Reserve is not a government agency – it is a set of 12 special purpose monopolies–àthe private banks.
This dimension means that the Federal Reserve changes interest rates could affect interest rates of credit cards and adjustable mortgages, but not a direct result. If the interest you pay by credit card is reduced, it is because the bank decided to lower the interest rate, not because the Federal Reserve changed the discount rate.