The Ugly Truth about Money

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 Fed

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…