how the federal reserve works

the audio may be a little off, especially if you’re using headphones this is a basic video of how the federal reserve works; it’s a bit dated (1999) and the …


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  1. the treasury auctions bonds on the open market

    that's not a loan

    and like i said before, the fed only makes loans to member banks and in emergencies, to other central banks

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  2. When the government is short of funds, the Treasury issues bonds When the Fed wants to create money it steps in and buys bonds from these dealers with newly issued dollars acquired by the Fed on a computer screen. These maneuvers are called "open market operations". The bonds then become the "reserves" that the banking establishment uses to back its loans., the same reserves are lent many times over, generating interest for the banks with each loan.

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  3. If the American people ever allow private banks to control the issue of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered." —Thomas Jefferson (1816)

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  4. your brain is what's baked

    the federal reserve gives all its net-profits to the government

    google: Federal Reserve Sends Record $88.4 Billion Profit To Treasury In 2012

    March 15, 2013 (Reuters) – The Federal Reserve sent a record $88.4 billion in profits to the U.S. Treasury last year, audited results showed on Friday, a big payday for the government thanks to the central bank's massive bond purchases.

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  5. The fed makes money from thin air and not baked up by anything of value. This ulta "gang" bank is not run by the government, it is run by banking elites (a few very rich people). They lend money to banks to get you you're loan for that new sports car or house and then charge you interest on it. You are paying interest for NOTHING. you are giving baking elite members free money. This is why our economy is so whack right now because of americans that do not know the truth behind the government.

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  6. Notice what they say at 3:22 !!!! "The FED Operates independently WITHIN the government, BUT NOT INDEPENDENT OF IT." Meaning they operate within the strict guidance and orders of the government. They do not have any soul authority to make policies, only to enact and carryout the policies and orders of the government, handed down from the US Treasury and Congress.

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  7. Each individual FED branch office is audited 4 times a year by the US Treasury, 2-4 times a year by internal peer review, 1-3 times a year by outside 3rd party and 1-2 times a year by GAO.

    So in all each individual branch office can have no less then 6 and as many as 10 audits a year. I speak from experience as I have been on many of those audits and I do not work for the FED nor the Government.

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  8. That's not an audit. That's a self report. A true audit, the audit that people are calling for, is for an INDEPENDENT (non-government) organization to evaluate and investigate the operations and responsibility of the federal reserve.

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  9. you' don't know what you're talking about

    2012 GDP in $billion:

    1) United States – 15,609.697

    2) China – 12,387.048

    3) India – 4,824.551

    source: IMF

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  10. all you did was talk bullshit

    technology comes from research and investment

    without a financial system to pay for those, this country wouldn't be what it is

    the point is that the federal reserve helped make our country the most successful producer in the world

    and notice how we haven't had a depression in more than 70 years, thank the fed for that, too

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  11. the foundation of production is technology. the more advanced it becomes the more you can produce (and the quicker). But there’s more to it than that. The economy also plays a part; when the level of demand rises the level of production does the same. And lastly the trade between countries dictates a portion of production as well. I’ve answered the question… now…what is your point?

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  12. if you can't answer this question, it's you that's has no fidelity to logic or reason

    why do you think the usa produces more goods and services than any other country?

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  13. There is no hope in trying to convince someone who has no allegience to logic or reason. It boggles my mind seeing someone relentlessly defending an institution that is obviously corrupt. You can't simply dismiss any concept that doesn't adhere to your own narrow minded beliefs. If you honestly think there isn't an issue with today's monetery system you're just another delusional human being. We need innovative, forward thinking minds to progress from here.. not oblivious/rude people like you

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  14. dajjal ruled all country trough banking system that all country used today,they used that moneytary banking system (dajjal/anti? christ get fund for free) to divide,funding war,poverty,slave,debt,stress each human in all country.

    in golden age (Imam Mahdi & Prophet Isa A.S) No more price tag,to travel,to work & to pray,all money system will be erased !!,free energy will be produced & used world wide, same like the world that vision & dream by Jacque Fresco? & Rachel Meadow from Venus Project.

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  15. take finance 101 and you get lessons on the basic principles of finance

    the 'time value of money' is the central concept in finance theory

    look it up and give it some thought

    to see some graphic evidence of how our financial system became so successful

    google: Annual inflation rates in the United States from 1666 to 2004

    look how much less chaos there was in the latter half of the 20th century

    slow, even inflation benefits the most citizens, it's monetary management, something to plan on

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  16. i can can say for sure that you're wrong on many levels

    the federal reserve doesn't print any money or mint any coins, none

    only the government does that through the treasury dept

    also, only congress can incur debt for the federal government

    the federal reserve doesn't lend money to congress

    if you think the dollar has lost 97% of its value and is only worth ¢3 now, i'll make you a deal and give you ¢25 for every dollar you have

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  17. What I find most troubling is the debt issue, where every dollar created is through loans and debt. If the government can issue bonds, why can't it just print dollars and not need the fed? Sure there could be inflation, but the fed can cause inflation also. Hasn't the dollar lost 97% of its value since the fed started?

    I've seen debt wreck lives, and I can't imagine this ending well for the U.S. Hopefully I'm wrong.

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