Money, as it is known, is no longer. Its value erodes with each passing day. Central banks around the world print money without the necessary reserves to back their currency. This practice is temporarily calming and conveniently called “quantitative easing” as in “easing the pain in a failing economy”.
The most powerful and influential central bank is the Federal Reserve Bank of the United States.
Contrary to popular belief the “Fed”, as it’s commonly known, is not a fully-fledged government institution or department but a privately- owned American company protected by a US government mandate.
The twelve regional Federal Reserve Banks were established as the operating arms of the nation’s central banking system. They are organised much like private corporations, possibly leading to some confusion about ownership. The Federal Reserve Banks have an intermediate legal status, with some features of private corporations and some features of public federal agencies.
Regarding the structural relationship between the twelve Federal Reserve banks and the various commercial (member) banks, political science professor Michael D. Reagan has written that:
“… the “ownership” of the Reserve Banks by the commercial banks is symbolic; they do not exercise the proprietary control associated with the concept of ownership nor share, beyond the statutory dividend, in Reserve Bank “profits.” … Bank ownership and election at the base are therefore devoid of substantive significance, despite the superficial appearance of private bank control that the formal arrangement creates.”
The Fed’s shareholders are unknown to the general public and veiled in a web of secrecy as there are no public records, audits or any information whatsoever about its shareholdings and daily runnings except for what is released to the mainstream media via official reports and public speeches.
The most important decision regularly released by the current chair, Janet Yellen, is either an announcement or indication of the interest rate rise or decline that affects the United States and the global economy as a whole.
Speculation abounds, and global markets move by the mere mention of a possible interest rate change. Evidently, long gone is the gold standard that once instilled confidence in the value of currency.