Excellent video M - some highlights
Meet The Federal Reserve
Coming from Jerry Nelson, corporate communications of the Federal Reserve in Chicago,
I think we can put to rest a few facts that some have disputed…
What is the purpose of the Chicago FED in the whole Reserve System?
1. We’re the bank for the Federal Government
2. We’re also the wholesale bank or central bank for all the depository institutions. This is where they get their coins/currency. And we process about half of the paper checks being processed which happily are diminishing rapidly. We’re down in the last 5 years by half of the paper check volume.
Our three main functions
1. Financial support services for these depository institutions
2. Supervision and Regulation
3. Monetary policy. To establish some continuous sustainable economic growth and of course minimize unemployment.
People have said that the Federal Reserve a private bank or a private corporation. Is that, in fact, true?
1. It is.
2. The board of governors IS government.
3. Each one of the 12 banks is a separate closely held private corporation.
4. We’re literally owned by the banks in our district.
5. Our other clientele and depositories, credit unions, savings and loans, can’t be stake holders just banks
6. Since we are private corporations, we pay property tax and everything else. We are also a not for profit. So all the revenue we realize over our expenses is remitted weekly to the general revenue fund of treasury so congress can spend it in all directions.
How much money does the Federal Reserve print every day? Is the money just created out of a stroke of a pen? How does the process work?
1. We can/can’t create fiat money. (that was at the 12 minute mark and I’m not positive if he said can or can’t after listening intently several times) Our checkbook doesn’t have a ledger. So you write out the check and it’s just transmogrified right out of thin air. It’s a nice checkbook to have.
2. It costs us, the cost of production over at treasury, a $100 dollar bill costs 7 cents.
Miscellaneous
Gold
1. In 1933 we had 20,000 metric tons of gold.
2. When the FED sold our gold reserves to the treasury, they paid us with 30,000 $100,000 bills.
3. They were gold certificates, not released, and were later all destroyed.
(this was at the 18 minute mark… and I don’t understand this part… Who is the FED he refers to? The Federal Reserve? Why did they have the gold to start with? It all sounded very contradictory.
Any last words for the public?
"I’ve probably said too many already."
"The only true law is that which leads to freedom," Jonathan said. "There is no other."
