The Federal Reserve, Who, What, Why

Did you ever use, "Who, what, why, where, when and how", to clarify
things? Sometimes it can be helpful. For example, my favorite subject,
The Federal Reserve System....Who are they? What do they do? How? Read
this over, see what you think. Maybe even try your own set of answers.
I'd be interested in your thoughts on the subject. I think it is
important to understand our money system. But, anyhow...here's my
answers for your fun and entertainment ...and discussion.

WHO is the Federal Reserve System? My answer: The Chairman, Mr.
Bernanke. The U.S. Congress may be a more accurate answer because they
created the FED and watch over it.

WHAT is the FED? It is the U.S. money system. We don't have the gold
standard anymore. U.S. money is created by the FED.

WHY is the FED? The FED exsists as a solution to the problem of
creating money. There are other possible solutions such as not having
any money at all...a pure barter system. Another solution might be to
return to the gold standard. Or, how about letting private banks create
the money? There is no movement towards another system that I can
discern. The FED is well established and doing well.

WHERE is the FED? Easy question. The FED is located in Washington,
D.C. at Constitution and 20th Street.

WHEN? The FED was created by the Federal Reserve Act in 1913.

HOW? How does the FED work? The currency supply is fairly straight
forward. It is just an inventory control function, that is, to provide
an adequate supply of one's, fives, tens, twenties, and hundreds. The
FED influences the supply of credit via the Discount rate, the Federal
Funds rate and the Open Market Committee. The FED has a bunch of other
functions such as providing a huge check clearinghouse. This is the
FED's biggest function as far as number of employees is concerned.
Approximately 70% of FED employees work here.

The FED also burns worn out bills, acts as a bank for the U.S.
Government, charters and regulates banks and was just recently
designated to be the top, main regulator of financial institutions. The
FED redeems food stamps, administrates international exchange rates and
holds U.S. reserves. That's a lot of heavy, critical functions! That's
why we the citizens must watch the FED closely. You can't trust people
with money.

The FED has a web site at http://www,federalreserve.gov/

.

Relevant Pages

  • Re: How the World Almost Came to an End on September 18, 2008
    ... at 11 in the morning the Federal Reserve ... noticed a tremendous draw-down of money market accounts in the U.S., ... We were having an electronic run on the banks. ... serviced by a central global bank and everyone will be issued an account ...
    (misc.survivalism)
  • Re: Fed again takes steps to boost market liquidity
    ... about 3/4 of a trillion dollars. ... A few trillion for the banks, ... Do they get actual money or credit on the Fed? ... Short answer to where the Federal Reserve gets it's money: ...
    (soc.retirement)
  • DISMANTLING THE U.S. FEDERAL RESERVE SYSTEM
    ... who was a "money controller" ... extension of the charter of the United States Bank (monopoly central ... Proposed legislation to repeal the Federal Reserve Act ...
    (alt.politics)
  • Re: Jihad watch
    ... "Give me control of a nation's money and I care not who makes it's ... Federal Reserve System have never been audited. ... "The Federal Reserve bank buys government bonds without ... "The Federal Reserve banks are one of the most corrupt ...
    (rec.martial-arts)
  • Re: The death of capitalism or how the federal reserve screws the old people
    ... and the federal reserve makes loans to banks at somewhere around four ... banks and those that get bank loans. ... "Milton Friedman alleged that the Fed caused the high inflation of the ... print too much money. ...
    (soc.retirement)
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