No, they are not private companies.
They are owned by the State. Profits accrue to the State.
Really, so if we own the central bank why to we worry about the interest we pay on loans to ourself? We are just paying it back to ourselfs.
Really, so if we own the central bank why to we worry about the interest we pay on loans to ourself? We are just paying it back to ourselfs.
It's not really privately owned:Big and important question right there.
The Federal Reserve is privately owned and some see it as unconsitutional. Presidential candidate Ron Paul explains it well in this video:
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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 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 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 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, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year.
The more you borrow, the riskier you become, the higher the amount you have to pay in interest, the more of your government income you spend on interest, the less you have for services and infrastructure, the lower the government income becomes, the less debt you can service, the more you need to borrow to pay the interest on the debt you already have, the higher the interest rate you are charged, the more you have to rollover each year, the higher you tax, the more tax evasion, the greater the cronyism, the more you borrow to line the pockets, the higher the interest you pay, the more you become.... Africa.yoganmahew,
your right I was thinking that the our central bank lends our government money, thus owning some of the our national debt.
The government sell bonds to the open market, this raises capital, then we pay interest back to the buyers. Is there a limit to the amount of bonds the government can sell?
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