Is the Federal Reserve Really Federal or is it Privately Held?

Every citizen should be asking that question. After all, the Federal Reserve controls the overall rate of borrowing money. They also control the issuance of currency (not money, there is a difference) and thereby the velocity and quantity of money in circulation. That has a direct impact upon the costs of our goods and the value of our labor by the way.

If there are too many Federal Reserve notes in circulation, the result is inflation. Inflation of the currency causes prices to rise because you have too many Federal Reserve Notes chasing too few goods so to speak. We have seen this in the housing and student loan markets for example.

When the Fed made currency plentiful and the government correspondingly made loans easy, the prices of homes rose. When the Fed made currency plentiful to the government and the government shifted that money into the educational market the cost of education rose significantly. Both are the result of easy Fed money. So, it is important to know how this Fed thingy works.

Watch the Video below for a clear overview of our Federal Reserve banking system

 So back to the original question. Is the Federal Reserve really Federal? Well let’s see what they have to say about it from their website:


So what does the above statement demonstrate? Well, first of all, after our they have paid all of their expenses with the interest paid to them from our taxes, then they provide their stockholders an annual dividend of 6 %.

Stockholders? Does a Federal government entity have stockholders? The short answer is NO!

Stockholders are associated with privately held Corporations, not government entities. So for them to even claim to be a quasi government entity is actually stretching the truth or in common parlance, a lie. They are a privately held Corporation listed in the white pages of the phone book (not the Blue government pages) along with all of the other privately held Corporations.

Additionally, there is also this little unheralded fact about the Federal Reserve.


They don’t pay any taxes!

So how would you like to have a business that issues money from nothing, gets paid an annual 6% income regardless of the economic circumstances, (According to Bankrate, most 1 year CD’s are 1% or less these days. ) has all of their expenses paid, regardless of economic circumstances, by the public and doesn’t have to pay any taxes?

Sounds almost like a scam doesn’t it?

Uh, don’t look now but in spite of the nice suits and professional appearance- it is!

To find out more about the Fed:


Leave a Reply