Why does the United States allow the Federal Reserve, a private institution, to control the currency?

1. The rights of the US federal government are limited.

As we all know, the United States is a federal government, but many people may not have too many concepts about the federal government, so let's first get to know the federal government and our * * * and state-owned areas. In our understanding, a country should be centralized. The central government has diplomatic, military, financial and legislative rights, and has absolute leadership over local governments, which exercise their functions and powers under the leadership of the central government. Local government officials are also appointed and appointed by the central government, and local government officials are responsible to the central government. But the federal government is not like this at all. Although it has military power and diplomatic power, it also has some financial power, but this financial power is to maintain the normal operation of the federal government, excluding the financial power of local governments. Other rights of the federal government are strictly restricted. For example, the legislative power is not in the hands of the federal government, and the appointment and removal of personnel in the judicial system is not within the jurisdiction of the federal government. It is useless for the president to see which judge is not pleasing to the eye. You have no right to revoke his rights as a judge. The decree issued by Trump when he first took office, local governments have their own independent fiscal revenue and legislative power, and the appointment of local government officials is not decided by the federal government. Even local governments have their own "central government". Therefore, in a federal country, the federal government exercises limited management power over local governments. Although the President of the United States has a very important position in the world, his rights are strictly limited within his own country. We can regard the federal government as the commander-in-chief of the three armed forces who exercises diplomatic rights on behalf of many local governments internationally.

The rights of the American federal government are strictly restricted, and the rights such as the right to issue money are also isolated from the rights of the federal government.

2. The origin of the Federal Reserve

After understanding the rights of the federal government, is it not so difficult for everyone to understand the status of the Federal Reserve? In fact, the United States Congress has been controversial about the establishment of a federal bank. Congress believes that the establishment of federal banks has expanded the rights of the federal government and correspondingly damaged the rights of local governments. So there has been no federal bank in America for a long time. Of course, the Federal Reserve is not the first federal bank. Before the Federal Reserve, alexander hamilton, the first US Treasury Secretary, proposed to Congress the establishment of a national bank after the American War of Independence. Mainly responsible for helping American States issue bonds to gradually repay the debts accumulated during the War of Independence. In addition, the bank can also help to keep the deposits of the Ministry of Finance and handle the financial revenues and expenditures of other federal governments, so it successfully established such a bank in Philadelphia in 179 1, but Congress only approved the first bank to operate for 20 years. However, because 70% of the shares of the First Bank belong to foreigners, many Americans worry that the First Bank is a tool for European financial families to control the United States. Therefore, after 18 1 1 year, the 20-year operation period of the First Bank expired, and the Congress failed to approve its continued existence, and the First Bank was forced to close down.

18 12 years, Britain and the United States resumed war conflicts. Due to the lack of an effective central banking system and a unified national financial market, state banks in the United States are in chaos. In order to restore banking order and deal with war debts, the United States once again considered setting up a central bank similar to the First Bank. 18 16 The US Congress voted, and President Madison signed a bill to establish the Second Bank of the United States, with a limited operating period of 20 years. Due to commercial competition, the second bank was strongly opposed by state banks after its establishment, so the license of the second bank failed to pass the examination and approval of Congress after 20 years. 1836, the second bank of the United States made the same mistake as the first bank and was forced to close down.

From the collapse of the Second Bank of the United States in 1836 to the birth of the Federal Reserve Bank in 19 13, there was no federal bank in the United States, and all local government banks operated independently. Due to various reasons, many financial crises broke out during this period. 1873, 1884, 1890, 1893, 1907, there have been large-scale bank failures caused by the financial crisis, especially 1893. 1097 When the financial crisis broke out, Morgan, the founder of JPMorgan Chase, a famous American financial company, realized the seriousness of the problem and called a meeting of the presidents of several most important financial companies, asking everyone to come up with funds to help banks facing a run. Morgan himself took the lead and took out funds to help the financial market tide over the crisis. To a certain extent, Morgan's role at that time was similar to that of the Federal Reserve, and it saved the financial market in 2008, which also made the United States see the importance of federal financial institutions. Therefore, after the financial crisis of 1907, U.S. Senator Nelson Aldrich organized a committee to investigate the causes and lessons of the financial crisis, and then he drafted a proposal called the aldridge Plan, arguing that when a financial crisis similar to 1907 occurs again in the future, the central bank can provide loans to those who have already been run. Later, based on the aldridge Plan, in 19 13, the US Congress finally reached an agreement and passed the Federal Reserve Act, which was signed by President Wilson and officially announced the establishment of the Federal Reserve.

3. The influence of the federal government on the Federal Reserve.

Although the Federal Reserve is a private bank and is not managed by the federal government, it is not completely not managed by the federal government. The United States has always attached importance to the division of power and the management of the Federal Reserve.

The highest decision-making body of the Federal Reserve's monetary policy includes seven members of the Federal Reserve Board of Directors and 12 chairmen of the Federal Reserve Bank, of which seven members must be nominated by the President of the United States and approved by Congress, but there are several restrictions on the executive members:

(1) Term of office 14 years, with no possibility of re-election;

(2) The President of the United States has the right to nominate, but has no right to recall. The recall of the Executive Committee must be approved by more than two thirds of the National Assembly.

(3) The nomination of the President of the United States can only nominate 1 executive members every two years, and the President can nominate at most two executive members during his four-year term to avoid the influence of the President on the Federal Reserve;

Therefore, it can be seen that many rights of the federal government and the president are strictly restricted at home. Is it understandable that the Federal Reserve is not under the management of the federal government?

According to the explanation of the book Currency War. America is controlled by a group of capitalists. These people killed everyone who dared to resist in the American government for the benefit of nothing, including so many presidents and more members of Congress. So much so that it is still like this. The president of the United States is just a puppet. Don't even think about economic matters, it certainly has nothing to do with the president. Other political affairs are all about capital control, and committees, experts and think tanks have written plans. The president can only choose one. In this way, the United States still has the face to say that it is democratic, which also shows what an American dog is. It is not the United States that allows this, but the American consortium has turned the United States into this deformed country. This reflects that the United States is just an evil dictatorship.

The Federal Reserve is not "a bank", but divides 50 states and the District of Columbia into 12 federal reserve areas, and sets up a federal reserve bank and several branches in each federal reserve area. It is a multi-central banking system composed of the Federal Reserve Board, the Advisory Committee and several commercial banks as member banks. Except for the Federal Reserve Bank, all national banks (commercial banks registered in the Office of Monetary Supervision) must be Federal Reserve Banks. At present, about one third of commercial banks are members of the Federal Reserve System.

In terms of functions and roles, the Federal Reserve is indeed the central bank of the United States, but it is indeed a private company registered in Delaware. It is completely different from the federal government agencies in the United States. Although the chairman of the Federal Reserve is appointed by the President, it is controlled with the approval of Congress.

The Federal Reserve is the abbreviation of the Federal Reserve Committee, and its function is actually the "American Central Bank". The Federal Reserve was established in 19 13 and consists of 12 US federal reserve banks. Responsible for formulating US monetary policy, including setting deposit reserve ratio, approving discount rate, and managing and supervising 12 federal banks and other member banks and holding companies. Its function is to control money and credit, and adjust the American economy by using three levers: open market business, bank loan discount rate and legal reserve ratio of financial institutions.

The Federal Reserve has independent decision-making power on monetary and financial policies and is directly responsible to Congress. Therefore, the role of the chairman of the Committee almost exceeds that of the president of the United States. For example, the current chairman of the Federal Reserve, not to mention that his financial policy plays a decisive role in the American economy, is that anything he says may cause stock market turmoil.

Adjusting interest rates is the main means for the Federal Reserve to macro-control the American economy. If the economy is overheated, it will raise interest rates, shrink the money supply, slow down the economic speed and reduce inflationary pressure. If the economy is depressed, it will lower interest rates, loosen monetary policy and promote economic growth. The key is to adjust the rise and fall of interest rates according to the economic situation, and it should be just right. Monetary leverage is the most effective weapon for the Fed to regulate the economy for many years. The interest rate adjustment of the Federal Reserve not only plays an important role in the American economy, but also has an important impact on the world economy.

First of all, the American economy is closely related to the world economy. Some people say that when the American economy sneezes, the world economy catches a cold. If the Fed raises interest rates and slows down the growth of the American economy, the world economy will also be affected. Because of raising interest rates and tightening monetary policy, Americans may reduce their consumption or investment, and their purchasing power will be reduced, which will directly affect the exports of all countries in the world to the United States. As an "engine of economic growth", international trade will slow down and world economic growth will be affected. On the contrary, if the United States lowers interest rates, stimulates investment and encourages everyone to spend, it will not only stimulate economic growth, but also import more goods, and the exports of other countries in the world to the United States will also increase, and the world economy will be fine. Second, the adjustment of interest rates by the Federal Reserve may also have an impact on the US dollar. In addition, affected by the adjustment of interest rates by the Federal Reserve, other countries may also adjust their own interest rates accordingly, thus affecting their own economies.

Not a private institution. The name is wrong.

The Federal Reserve is a social group composed of top financial experts who guide, supervise and make decisions for the government.

The Federal Reserve is a private central bank. The shareholder structure of the Federal Reserve is relatively secretive, and its eight major shareholders are as follows:

1 Rothschild Bank in Berlin and London

2. Lazard Brothers Bank in Paris

3. Moses Saif Bank in Israel is in Italy.

4. Lehman Brothers Bank of new york

5. Kuhn's Loed Bank in new york.

6. Chase Manhattan Bank of new york

7. new york Goldman Sachs Bank

8. Warburg Bank in Amsterdam

There are nearly 300 shareholders, many of whom are related. Among them, the Rockefeller family is the most powerful family. After the collapse of Lehman Brothers Bank, the shares were transferred to other institutions. Major shareholders are chaebol. Can their policies benefit the people? You can learn about the personal income tax in the United States and know how heavy the tax burden of Americans is. Big American companies don't pay taxes! The United States and the Democratic Party have no enterprises, so they are easily subject to these big chaebol.

First of all, the Federal Reserve is not a private institution. It is the central bank of the United States, but it is not a central bank controlled by the state in the traditional sense. Why? Let's start with American history.

In a sense, the development of the United States can be said to be promoted and established by Rockefeller, Vanderbilt, Carnegie, Astor, Ford, Morgan and other big families. CCTV has a good documentary-the legendary American business tycoon. It's really good if you are interested. Of course, banks are also part of their business empire, and many state-owned banks and investment banks have their presence. The development of American history and the change of president are inseparable from the support of the big consortia behind them, which are moving forward in mutual support and containment. But at that time, there was no current Federal Reserve, but the so-called First Bank and Second Bank that failed in American history. They were actually in the hands of chaebol and more commercial banks, and the mainland was bright, and finally Congress closed.

This is a struggle for control. It was not until the 1907 financial crisis that the chaebol and the government were affected that they realized that the central bank was needed to maintain the security and stability of the financial market. After constant arguments and consultations, the Federal Reserve was formally established in 19 13.

Why did it take a few years? Because on the one hand, the chaebol didn't want the federal government's power to be too large and threaten its own interests, and the federal government didn't want the central bank to be dominated by a few interest groups, so the two sides infiltrated each other and jointly established the current Federal Reserve. It can be said that it is an independent third-party organization controlled by Congress, but it is definitely not a private organization. It consists of seven members of the National Committee of the Federal Reserve CPPCC nominated by the President and 65,438+02 chairmen of local federal reserves.

After the financial crisis in 2008, the role of the Federal Reserve has become more and more active, and its monetary policy and economic control measures have become more and more mature, and its position has become more deeply rooted.

Because of the decentralization of power. The United States is a country that attaches great importance to decentralization and checks and balances, so we must abandon some inherent concepts when studying this issue. Not all countries are highly centralized.

At the beginning of the founding of the United States, the federal government was a loose organization, and most of the rights were in the hands of state governments. With the development, the rights of the federal government are increasing, but things that limit the rights of the federal government have never stopped. In fact, many rights are not in the hands of the federal government. For example, each state has its own legislative power and its own chief executive, and even has its own central government and bank. The chief executive of each state is not appointed by the federal government, so naturally he has no right to recall him. This is why state officials ignore the president.

The same is true of the right to issue money. Originally, the state governments did not agree to set up a federal bank, so they had to set up a federal reserve bank under the pressure of the financial crisis, which is what we call the Federal Reserve, responsible for formulating monetary policy, issuing money and financial stability. How can such a powerful institution be handed over to the federal government? This is not in the interest of the States.

Although the federal president is awesome in the world, at home, the rights of the president are strictly restricted, and the rights of the federal government are also restricted. The federal government does more things that state governments cannot do independently, such as military affairs, diplomacy, foreign trade, and immigration management. In the United States, the state government still has great power.

Therefore, it is normal that the US federal government has no right to issue money. The state pays money to see you, and the right to issue money is given to you again. If you don't have enough money, print money, and the poor can't live?

Therefore, although the dollar has also depreciated, we have to admit that the dollar is still the most stable currency in the world, which has to be said that the US currency issuance policy has played a role.

First of all, the Federal Reserve cannot be said to be a private institution.

The organizational system of the Federal Reserve is very special. Its headquarters is a part of the government, its branches are non-profit organizations, and major commercial banks in various regions are members of the branches.

Second, the purpose of this design is to prevent the Fed from making all decisions only from the perspective of the federal government, and monetary policy does not consider the interests of commercial banks.

Everyone knows that the United States is a country with separation of powers, right? The legislative power is controlled by the parliament, the judicial power is controlled by the court and the executive power is controlled by the government. The three institutions and powers restrict each other and do not interfere with each other. The independence of authority is very important.

The right to formulate monetary policy is also an independent power. American political philosophy emphasizes the trade-off between the government and the private sector. Excessive government power may damage people's power. Therefore, those institutions that hold important power should be independent of the administrative power of the government.

Third, it is precisely because of this idea that since the birth of the Federal Reserve, it has been ignoring changes and striving for the right to live independently. At first, it was completely part of the government, and all monetary policies were ultimately decided by the president. Later, it had nothing to do with the government at all, and the chairman of the Federal Reserve could ignore the president's opinion.

After a long period of development, this situation gradually formed. In other words, the headquarters is actually very close to the government, which mainly represents the interests and viewpoints of the government, while the branches mainly take the interests of bankers as the starting point, and the two sides check and balance each other, which leads to the Fed's policies taking into account the interests of all parties at the same time.

This is why many people say that the Federal Reserve is actually controlled by a large group of Jewish bankers. This statement can't be completely wrong, and of course it can't be completely correct. Unlike other central banks, the Federal Reserve is not entirely a product of the government, but it is not entirely a representative of the interests of private banks.

The Federal Reserve is neither federal nor reserved. The federal government issued bonds, and the federal government mortgaged the bonds to the Federal Reserve, so the dollar was born. The federal government has to pay huge interest on its debts to the Federal Reserve, so the tax revenue of the American people has entered the Fed's pocket for no reason.

The U.S. government never explained why it didn't issue dollars directly, but insisted on issuing bonds first, and then mortgaged the bonds to the Federal Reserve to obtain dollars, and there was no ready-made answer in economics textbooks.

I think what is written in the book Currency War is that the federal government also wants to nationalize the right to issue money, but the president who tried to do so was eventually killed or surrendered by the financial consortium, which eventually led to the present situation. The whole United States, including the government, worked for the financial consortium.