Private Banks own direct shares in the FED. Not their NPO subsidiary's. I would love to see evidence to the contrary. Besides, the FED System remits a handsome 10-30 Billion a YEAR in profits to shareholder banks. How does that make sense if those shareholders are NPOs?
Yeah, the problem is you've got to do it synthetically...as of January 1, 2008 (a while back, I know), the conversion factor was: 1 synthetic share of the Fed = [(-5,000 /DX)+(-5,000 /ZT)+(-1,000,000 LEH)+(-1,000,000 BSC)+(-500,000 VIX ATM Calls)+(/GE-/ZQ)]+[(20,000,000 JPM)+(100,000,000 GS)+(100,000,000 GM + 100,000,000 BAC + 100,000,000 C)+(100,000 /ZN)+(20,000,000 IYR + 20,000,000 XLF)]
The article does not reflect the reality......shares ARE owned by entities (other than banks) for the various federal reserve branches. About 70% of the various fed branch shares are owned by old western european wealth entities. Bernanke is just a puppet minion who is the face for the false perception of the fed that is shown to the world. Do your own due diligence, and you will find just how dysfunctional the relathionship is between our government and the privately held fed.
The banks make profits by getting low interest money from the Fed, then using money multiplier to make loans and get interest on the loans. Where is the $10-30 Billion coming from? Though krazykarl did raise a good point about whether or not the Fed functions as a NPO. If it does, then again - where is the $10-30B number from?
Dear circadian, Thank you very much for your forumla... however I don't understand all the legs in it . But it clearly don't follow the Kiss standard ( keep it stupidly simple... ) so there isn't a more direct way to get exposition to it ?
Holding a long-term short position on the USD should work well over the next decade, that is, while we try to work off our massive deficit. Dollar rallies will occur due to oversold conditions and intermittent crises, but the buck will continue to be debased for the long term. This, of course, if only my humble opinion.
Please don't forget the Fed isn't one entity: there are a handful of orgs that make up the Fed.(and no, i don't mean the regional reserve banks)
I would love to see evidence that the Fed is a for-profit organization. Where are you getting these profit numbers from? Link please, else stop making data up. You're starting to sound like you need a tin-foil hat to keep the FM radio waves from controlling your mind... And reread my post - the shareholders are not the NPOs. "As the nation's central bank, the Federal Reserve derives its authority from the U.S. Congress. It is considered an independent central bank because its decisions do not have to be ratified by the President or anyone else in the executive or legislative branch of government, it does not receive funding appropriated by Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms. However, the Federal Reserve is subject to oversight by Congress, which periodically reviews its activities and can alter its responsibilities by statute. Also, the Federal Reserve must work within the framework of the overall objectives of economic and financial policy established by the government. Therefore, the Federal Reserve can be more accurately described as "independent within the government." The twelve regional Federal Reserve Banks, which were established by Congress as the operating arms of the nation's central banking system, are organized much like private corporations--possibly leading to some confusion about "ownership." For example, the Reserve Banks issue shares of stock to member banks. However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year. ...After paying its expenses, the Federal Reserve turns the rest of its earnings over to the U.S. Treasury. " If you have a problem with the Fed, call your damn congressperson and quit bitching.
6% a year in dividends is a FOR-PROFIT SYSTEM. DUH!! Plus appointment control over Fed Boards. And that's not audited by the GAO. Mind you, the FED owns >50% of the national debt that accrues some ~350 Billion a year in interest @ ~1-3% rates. What do you suppose the actual yield on that 6% dividend is ? You mean this post? Either way, you're wrong. You pass off conjecture and opinion as (baseless) fact. Private Commercial Banks really own direct shares in the Fed System. Those Shares really do pay out a Hard Money Dividend. And those shareholders really do get majority appointment control over each of the 12 Fed Boards. Which means they - as in Private FOR-PROFIT Banks - really control the Federal Reserve, dipshit. Presidential Appointment and Confirmation of the Chairman is really just window dressing so doe-eyed rubes (like you) can think there's a Chinese Wall between your money and the greedy Wallstreet Fucks that just raped you for 7 Trillion. Oh yea. You're a sharp one.