11_Panama_ wrote:It's a bad thing Otto because first of all... it's not a Govt' agency.. it's private (meaning owned by a person(s)). Secondly, they print our money and "lend it" to us.. with interest. There's more, but I can't think of them right now (occupied with the Packers game). GO PACKERS!!!
Pan, you are probably confusing it with something else. The federal reserve is not private and is accountable to congress. However, they are probably one of the best managed institutions from the U.S government since the Chairman of the Federal Reserve does not need approval from the President to make decisions regarding interest rates or some kinds of financial regulation (shielded from bad political stuff). Of course, there are some idiots that become chairmen and make terrible decisions, but overall they are very respected economists.
besides, they don't lend the money to people, it's the other way around. The interest rates are there because that means people like you and me, or banks can lend money to the government and get some profit. That's what Bonds are. When you buy a government Bond you are lending money to them, and in exchange you get more money after a few years. And it's very useful... for example, I don't see how the U.S would have been able to win World War II without selling bonds. The fed does lend to banks sometimes... but that's a more complicated feature of the central bank for certain situations.
http://www.federalreserve.gov/faqs/about_14986.htmTheir job:
control monetary policy... in other words, stop excessive inflation or excessive deflation. That's why they sometimes have to "print money", which is not bad all the time, as most people believe.
but anyway, I just wanted to clarify this... Duel, I know the topic is benghazi, so sorry if I went out of topic
I like economics, so if anyone wants to ask me about this stuff, i'll always be available to explain how this stuff works.
EDIT: btw, private banks do have some involvement in the 12
Regional Federal Reserve banks... but these are only there to provide certain services for regional banks. Besides, private banks also need to be involved in the operations of the Federal Reserve to make sure that as an institution of the government it won't destroy the operation of banks or the economy either. It is a way of making the Fed accountable to some extent.
How is that for memory? Dip [poo]. 
