Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: Karen Lawrence who wrote (42876)	9/9/2002 1:34:16 PM
From: maceng2	Read Replies (2) \| Respond to of 281500

Whether the USA government operates as a democracy, or is just a tool of Wall St seems like an "ON TOPIC" item to me. Interested in what FL thinks on this matter. Foreign countries perception of the USA may hinge on just such a subject. Moving on.. Communism review by China's "People Daily" Ranks of CPC Members Full of Life and Vigor Highlights: The number of the Communist Party of China (CPC) members totals 66.355 million by June, 5.938 million more than in 1997, structure of ranks tends toward rationality, and vanguard and exemplary role is brought into full play english.peopledaily.com.cn

To: Karen Lawrence who wrote (42876)	9/9/2002 2:18:20 PM
From: Win Smith	Respond to of 281500

Here is an official response of sorts. "Ownership" is sort of a funny question here. For practical purposes, I'd say it's effectively defined by the last two sentences below. The operations of the Fed are sometimes obscure and murky, but there's also a tendency to make them out as murkier than they actually are. Who owns the Federal Reserve? federalreserve.gov The Federal Reserve System is not "owned" by anyone and is not a private, profit-making institution. Instead, it is an independent entity within the government, having both public purposes and private aspects. As the nation's central bank, the Federal Reserve derives its authority from the U.S. Congress. It is considered an independent central bank because its decisions do not have to be ratified by the President or anyone else in the executive or legislative branch of government, it does not receive funding appropriated by the Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms. However, the Federal Reserve is subject to oversight by the Congress, which periodically reviews its activities and can alter its responsibilities by statute. Also, the Federal Reserve must work within the framework of the overall objectives of economic and financial policy established by the government. Therefore, the Federal Reserve can be more accurately described as "independent within the government." The twelve regional Federal Reserve Banks, which were established by the Congress as the operating arms of the nation's central banking system, are organized much like private corporations--possibly leading to some confusion about "ownership." For example, the Reserve Banks issue shares of stock to member banks. However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold or traded or pledged as security for a loan; dividends are, by law, 6 percent per year. The earnings of the Federal Reserve System come primarily from interest received on the Reserve Banks' holdings of U.S. government securities (which are used in the conduct of monetary policy) and from fees they charge depository institutions for providing services (such as processing and clearing checks). The expenses of the System are paid from these earnings. Any net earnings are paid yearly to the U.S. Treasury. For 2001, the payment was $27.14 billion.