What would happen if the Federal Reserve was shut down permanently?That is a question that CNBC asked recently, but unfortunately most Americans don’t really think about the Fed much.
The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year. That is why we have all become accustomed to thinking of inflation as “normal”. And current Federal Reserve Chairman Ben Bernanke says that it is actually a good thing to have a little bit of inflation. Well, just consider the following excerpt from a recent Forbes article….
But instead of endlessly blaming both political parties, the truth is that most of the blame should be placed at the feet of the Federal Reserve. The Federal Reserve controls the money supply, the Federal Reserve sets the interest rates and the Federal Reserve hands out bailouts to the big banks that absolutely dwarf anything that Congress ever did.
The Federal Reserve has more power over the performance of the U. If the American people are ever going to learn what is really going on with our economy, then it is absolutely imperative that they get educated about the Federal Reserve.
This runs contrary to the conventional wisdom that Democrats and Republicans would have us believe, but unfortunately it is true. government wants to spend more money than it takes in (which happens constantly), it has to go ask the Federal Reserve for it. They even secretly loaned out hundreds of billions of dollars to foreign banks.
The way our system works, whenever more money is created more debt is created as well. According to the results of the limited Fed audit mentioned above, a total of .1 trillion in secret loans were made by the Federal Reserve between December 1, 2007 and July 21, 2010. The amount of “excess reserves” parked at the Fed has gone from nearly nothing to about 1.5 trillion dollars since 2008….Not only did the Federal Reserve give 16.1 trillion dollars in nearly interest-free loans to the “too big to fail” banks, the Fed also paid them over 600 million dollars to help run the emergency lending program. #5 The Federal Reserve Is Paying Banks Not To Lend Money Did you know that the Federal Reserve is actually paying banks not to make loans? Section 128 of the Emergency Economic Stabilization Act of 2008 allows the Federal Reserve to pay interest on “excess reserves” that U. Unfortunately, the Federal Reserve is not working for us. Sadly, most Americans have no idea what is going on.