FalcoFog - 3/28/2020 11:20



It is popular belief that the fed is private, this view is held by some at the fed only because it is so often repeated, but it is not true in any way shape or form.

The Fed is a government agency beyond any doubt or dispute.

Look right on their website : "Some observers mistakenly consider the Federal Reserve to be a private entity because the Reserve Banks are organized similarly to private corporations."

https://www.federalreserve.gov/faqs/about_14986.htm

Here is the history of why some may think the fed is private but it isn't and history clearly says this. Here is the quick and dirty.

From 1913 to the 1935 rebuilding of the fed, the fed may have been subject to the banks but in 1935 the Fed was completely abolished and rebuilt from the ground up as a part of the treasury dept. FDR ran monetary policy out of the white house from 1935 till he died, certainly not a private outfit at that point.

Then in 1951 inflation was getting high and all of Trumans guys said Mr. Prez we need to raise rates to get this under control. Truman said something like,"That is what Stalin wants us to do!". So Truman didn't want to be the politician to raise rates so they came up with the idea of spinning the Fed off from the Treasury dpt. and the administration into an "independent government agency" so the President would not be seen as the one raising rates.

This was called the 1951 Treasury Fed Accord.

Since then there have been some adjustments to how Fed operates but it is mostly the same structure. Yes the Fed was formed in 1913 but it was destroyed and rebuilt in 1935. Think of the Fed today as the second try at the FED and not the creature from jekyll island.