On what ground is the semi-independent status of the Federal Reserve necessary by those who save from harm it?
Answers:
Because the structure and status of the Federal Reserve is CLEARLY defined BY LAW. U.S. Code, Title 12, Chapter 3 covers the structure and governance of the Federal Reserve system. http://www.statute.cornell.edu/uscode/html/u...
Also, because society who protect the Federal Reserve system in truth know how it works and how it is structured. We don't bed our culture on conspiracy theories or some quote taken out of context.
The Federal Reserve System is controlled by a Board of Governors, also prearranged as the Federal Reserve Board. The Board of Governors, located contained by Washington, D.C., provides the supervision for the System.
The Board of Governors is the national component of the Federal Reserve System. The board consists of the seven governors, appointed by the president and confirmed by the Senate. Governors serve 14-year, staggered language to ensure stability and continuity over time. The chairman and vice-chairman are appointed to four-year jargon and may be reappointed subject to occupancy limitations.
A meet people of 12 Federal Reserve Banks and 25 branches spawn up the Federal Reserve System underneath the common oversight of the Board of Governors. Reserve Banks are the operating arms of the medium guard.
Each of the 12 Reserve Banks serves its region of the country, and adjectives but one hold other office in their Districts to aid provide services to depository institutions and the public. The Banks are name after the locations of their headquarters-Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco.
The Reserve Banks serve bank, the U.S. Treasury, and, indirectly, the public. A Reserve Bank is repeatedly call a "sponsor's hill," storing currency and coin, and processing checks and electronic payments. Reserve Banks also supervise commercial bank within their regions. As the mound for the U.S. system, Reserve Banks button the Treasury's payments, put on the market parliament securities and assist beside the Treasury's bread paperwork and investment events. Reserve Banks conduct research on regional, national, and international financial issues. Research plays a critical role within bringing broad financial perspective to the national policymaking arena, and supports Reserve Bank presidents who adjectives attend meeting of the Federal Open Market Committee (FOMC).
Each Reserve Bank's board of directors oversees the paperwork and deeds of the District edge. Reflecting the diverse interests of respectively District, these directors contribute local business experience, community involvement, and supervision. The board impart a private-sector perspective to the Reserve Bank. Each board appoints the president and first vice president of the Reserve Bank, subject to the approval of the Board of Governors.
All contributor bank hold stock surrounded by Reserve Banks and receive dividends. Unlike stockholders contained by a public company, bank cannot provide or trade their Fed stock. Reserve Banks interact directly beside bank contained by their Districts through examinations and financial services and bring key regional perspective that relief the entire Federal Reserve System do its chore more effectively. Additionally, by statute, private individuals, non-banking corporations, and foreign corporations cannot own more than a tiny amount of Federal Reserve stock and these small owners hold no influence contained by the operation of the bank.
Approximately 38 percent of the 8,039 commercial bank surrounded by the United States are member of the Federal Reserve System. National bank must be member; state-chartered bank may interweave if they come upon convinced requirements. The extremity bank are stockholders of the Reserve Bank within their District and as such, are required to hold 3 percent of their wherewithal as stock surrounded by their Reserve Banks.
As far as reserves, the Federal Reserve Board of Governors sets requirements for the amounts that partaker bank and depository institutions must set aside in the form of reserves. Reserve requirements feat as a control on the expansion of money and credit and may be raise or lowered inwardly precincts specified by imperative (lowering reserve requirements allows more guard lend and money growth; raise requirements, smaller quantity lend and money growth).
Another interesting certainty: The Federal Reserve owns outright $11 billion surrounded by gold ingots reserves as evidenced by the Fed's go together sheet. http://www.federalreserve.gov/releases/h...
Another interesting reality #2: The Federal Reserve is required by statute to rebate interest collected on U.S. Government debt to the U.S. Treasury.
Another interesting certainty #3: The Federal Reserve one and only holds give or take a few 8% of the total U.S. debt. Another 44% is held by...
[Drumroll please]
THE U.S. GOVERNMENT! Yes, the affairs of state lend money to itself. Only just about 47 to 48% of the total U.S. debt is held by private individuals, corporations and foreign government.
http://www.fms.treas.gov/bulletin/index.
http://www.treasurydirect.gov/np/bpdlogi...