What The Federal Reserve Would Look Like If Progressives Had Their Way (they would nationalize it)

(So much for the debate about the Fed not being privately owned. And look at that… Hillary isn’t on board with the idea. This is interesting. I don’t know where Trump stands on the idea, but in short order, there may be an awful lot of his supporters looking for a candidate who will “end the fed” or “audit the fed”. The Rep. convention is July 18 – 21 and the Dem’s is a week later, July 25-28. Bernie says he’s taking it all the way to the convention, he opposes these horrible trade deals and now is getting on board with the idea of ending the fed as a privately owned institution. He’s opposed to billionaires owning the political system, just like Trump claims he is. I wonder if the Bernie people aren’t expecting to snatch up a couple million Trump supporters after the Rep. Big Wigs roll out their new candidate at the contested convention. Makes you wonder, don’t it?)

by Daniel Morans, Huffington Post

  • A new progressive proposal for reforming the Federal Reserve would turn the central bank into an entirely public institution.
  • Reform advocates argue that the Fed’s regional banks are too beholden to financial institutions.
  • The plan’s release is timed to spark discussion among presidential candidates, but only Bernie Sanders’ campaign responded positively to it.

The progressive Fed Up coalition released an ambitious Federal Reserve reform plan on Monday designed to increase discussion of Fed policy in the presidential campaign.

“The Federal Reserve Must Be a Fully Public Institution. Under current law, commercial banks are the legal owners of the twelve regional Federal Reserve Banks, and they control two-thirds of the seats on the boards of directors of each regional Fed. This must change.” Andrew Levin

The reforms, which would require the passage of new legislation, would turn the Federal Reserve into a public entity akin to other federal agencies, with the goal of dramatically increasing the accountability of the world’s most powerful financial body.

Currently, the 12 regional Federal Reserve banks are owned by private commercial banks. As a result, financial executives dominate the regional Fed banks’ boards of directors, giving them an outsized role in key decisions like the selection of the banks’ influential presidents.

Four of the current presidents are alumni of Wall Street titan Goldman Sachs.

Fed Up and other progressives argue that the present governance structure undermines the Fed’s role as a regulator of the country’s financial institutions. These critics also argue that the influence of big banks tends to make Fed officials more sensitive to concerns about inflation, even as they hear little from ordinary workers affected by nominal changes in the unemployment rate.

Andrew Levin, a Dartmouth economist and former adviser to the Fed chair, who authored the proposal, said on a call with reporters that the changes would bring the Fed’s structure into line with major central banks in other countries. He mocked the plain conflict of interest inherent in giving the financial industry so much power over an institution charged with regulating it.

It should be amazing for people in the public that banks actually own shares in the Fed. A lot of people would be shocked to hear that,” Levin said.

“It would be like if lawyers owned shares in the FBI,” he added.

[read more here]

14 Responses

  1. of course, the politicians DO NOT want accountability. Of course, Levin is against it because he’s a Globalist PUPPET (and friend of ted cruz, another globalist PUPPET)

  2. Where is the reader who always argues that the Fed isn’t privately owned? Why hasn’t he commented on this one yet?

    • I do have a life where I work, sleep and stuff.

      The article is drivel.

      This is just distraction. Look over there!!!!!

      It’s the politicians that hold the spending and taxation power.

      In modern monetary systems central banks are really just accounting arms of the government that could (and imo should) be offices within the treasury.

      The Fed can’t operate without constant communication from the Treasury and it doesn’t have the powers that you think it has.

      You’re barking up the wrong tree and that’s just how the elite want it.

      But join Alex Jones and the Fed haters if you will. You seem to be attracting the right wing fringe libertoonians lately.

      • Ah. So, even though it’s “drivel” you at least now seem to be conceding that the Fed is privately owned, but now your focus is that it’s the government that directs spending and taxation, so the Fed is just “an accounting arm of the government” and therefore “it doesn’t have the powers” that we think it does. Is that about it?

        And of course, you toss in some dismissive straw man comparisons to Alex Jones and a little name-calling for good measure (“Fed haters”, “fringe” and “libertoonians”)

        Did you know the second thing they did in Iraq after killing Saddam and taking over the country was to do away with their state-owned central bank system and replace it with one like our own? My guess is, you did know that, didn’t you? I mean after all, you seem to be resorting to troll tactics now, so I guess the conclusion I would have to draw is…

        Yeah, the Fed has a great deal of power in this country especially if you consider which privately owned institutions make it up. These banks are embedded with government on the highest level, run the Treasury department, and own our politicians all the way down to the state level and you sit here trying to tell us it’s not the Fed’s fault, but rather government that sets and makes bad policy.

        Talk about barking up the wrong tree.

        The moment you used the word “fringe” the gig was up, just so you know.

        • I’m not conceding that the Fed is privately owned. It isn’t.

          That ‘stock’ that is always assumed to be akin to shares, is part of the member banks’ lodged capital requirements.

          Of course the banks have far too much influence. And yes the Fed is dominated by neoclassically minded and trained elitists.

          But influence over the Fed’s actions are far from the main game.
          It’s the politicians that set spending and taxation rates i.e. fiscal policy.

          And that is the main game. That’s how the dollars go into and out of the real economy.

          Monetary policy is about interest rates and liquidity of the banking system. It has limited effect on the physical world that we eat, work and sleep in.

          It’s not the Fed cutting social spending, it’s congress. It’s not the Fed cutting taxes on the high rollers.

          I’m not saying what you think I’m saying. The monetary system doesn’t work the way you think it does. It’s congress.

          So we are ‘arguing’ at cross purposes.

  3. Calling jag37777, pick up the white courtesy phone please.

    • You’re probably still labouring under the illusion that the state’s “debt” (the state being the Federal Government) is a liability of the private sector.

      Quite the reverse.

      It isn’t. Until you get that, you won’t have a clue about any of this stuff.

      But hey, hang with the ‘anarcho-capitalists’ all you want. I’m sure they’ll give a good deal on gold.

      • So who’s liability is it and by “quite the reverse” do you mean to imply that the big bad state is holding them back and the only thing keeping us afloat is Big Business?

        • It is the liability of the state and the asset of the private domestic and the foreign sectors.

          And no I’m not in any way, shape or form implying that. Far from it.

          The state is holding back on social spending with the ideological cover of ‘balancing the budget’ and thus not adding to ‘the debt’.

          And people fall for those arguments.

          But it is all a big lie. A hoax being played on populations everywhere.

          It’s all about shrinking the state and the big players monopolising services and infrastructure that should be provided by the state.

          Don’t make the mistake of thinking that I am pro-Fed or pro-big business. Because I am most certainly not.

          I’m probably well to the left of anyone you’ve met.

          • you think you are well to the left of me?

            • well of course he’s to the left of you! you’re not accepting that ben bernanke is telling the gospel truth? you don’t believe the fed is part of the government? evidently you’re clearly misinformed re the exponential growth of our debt & the steady devaluation of our dollar — that has nothing to do with the citizens’ debt, btw, lol. and clearly you don’t understand that mssrs rothschild, rockerfeller, morgan & co started the federal reserve system out of their great patriotic feelings for the usa. what are you, some kind of communist?

              “jag” isn’t even addressing the same issues; of course it’s congress who has control of spending — but the central banks who are owed debt for dollars are happy to do so, because they are the recipients of debt + interest (hence the ballooning debt & devaluation of the dollar). the fact that these politicians are owned & controlled by the moneyed interests is also different issue — the fact that the people don’t want any unneeded debt — whether through money based on debt (like our dollar) or interest-free debt created through “honest money” (money based on something other than faith) means nothing — people still want viable roads & schools, etc.

              “jag” should try to find a position with “team hillary”.

  4. That boy’s got his wires crossed, Mr.Tesla. Don’t give him too much of your alternative currency.

    Is Levin’s Fed Up a limited hangout, though? Time will tell. It seems a little bud lite to me…and I don’t drink.

    Still, what a laugh to see the Fed go into expedited secret meetings…unless all this coffee talk about public banking around Purim time has them on the warpath to one world order before the trap set on 9/11 is sprung by dragonflies and Ellen Brown. Time is slipping away and soon, barring heroic genetic cloning by Chinese slaves, the Rottenchilds will turn belly up no matter what they do or try to do. Stanley Fischer is actually not the ruler of the world, he is near the end of his line. That is the truth Gilgamesh eventually had to face. The Gods gave him youth as a consolation prize, but it was stolen at a rest stop. My guess is this is the first of many frissons to come for the Fed’s tribal assholes. The emperor has been found out. When the tide turns all will see who has been swimming naked.

    Maybe the cashless idea and the bailins were a bridge too far? Or was it 9/11?

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