Still, the federal reserve dollar is the world reserve currency. If that goes down the tubes, substantial pain is in store.
14th Amendment to the Constitution of the United States:
Section 4. The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned. But neither the United States nor any State shall assume or pay any debt or obligation incurred in aid of insurrection or rebellion against the United States, or any claim for the loss or emancipation of any slave; but all such debts, obligations and claims shall be held illegal and void.
Section 5. The Congress shall have power to enforce, by appropriate legislation, the provisions of this article.
Like it or not any financial debt authorized by Congress is constitutional.
The Federal Reserve IS NOT a privste banking institution.
It belong lock stock and barrel, to, the United States Government.
What you know about the Fed would be lost in a child's thimble and what you don't know about it fills vast libraries.
With one exception, all members of the Federal Reserve Board, which operates the entire structure, are appointed by the President with the Advice and Consent of the Senate of the United States. The one exception is the President of the Federal Reserve Bank who is a member of that Board by law. And the Federal Reserve Board operates with the oversight by the US Coingress, The Secretary of the Treasury of the US, and the Controller of the Currency.
The Full Service banks which"own" the 12 regional banks are not owners but forced members of that regional bank. To conduct business as a full service bank in this country, a bank must be a member of the Federal reserve System. As a member they are required to keep on deposit with that bank a specified percentage of their Capital IN return, they are given "shares" in that bank. But all they own is the money they are forced to deposit. They have no right to anything else. If Congress should decide to abolish the Fed. all a member bank would get is those forced deposits. Everything else reverts to the US Treasury.
Their membership gives them a vote in the selection of the Board of the regional bank. That board operates, through the people they hire, the daily operations of that regional bank subject to the overall operating policies and Procedures laid down by the Federal Reserve Board.
If the Board of that Regional bank wishes, they May, but are NOT REQUIRED to pay the member banks a "dividend" not to exceed 6% in any year out of the profits it earns from its operations. The member banks may not sue or take any actions to force the Board to pay them a dividend.
The regional bank may retain any of its profits that it requires to provide the Capital it needs to support its operations. ALL REMAING PROFITS MUST BE PIAD TO THE US TREASURY each year, not as a tax, but as belongiong to the Federal Government when it was earned as owner of that bank.
A bank cannot buy any more "shares" in its regional bank. It cannot sell its shares to any other entity. "Shares" are purchased by depositing the amount required to fulfill the stipulated Reserve Requirement at a price fixed by the Regional Bank. The only way it can sell its shares is to cease doing business as a member bank (i.e. literally going out of business) and selling its "shares" back to the Regional bank for a sum equal to the amount it was required to deposit. It cannot use its "shares" as collateral for any loan nor Hypothecate them in any way.
In short, it is ownership in name only with no legal incidense of ownership attaching to them.
The Federal Reserve does not borrow money on behalf of the US. It can buy or sell Government Bonds and other obligation only on the open market. That is, it cannot buy any Government obligations direct from the US Treasury. It can monetize the Federal Debt but it cannot create a Federal Debt.
The Constitution gives Congress Complete control of US Currency. Like most all of its authorities, it can authorize anyone or any thing to exercise those authorities on its behalf since they are not structured or staffed to do so themselves.
There are valid arguments to be made for not having a Federal Reserve System. Nothing you stated has any validity. Valid criticism can be levied against how it is carrying out its responsibilities under the law. Such as the idiocy of The Federal Reserve Board raising interest rates in 1929. An act, which along with the Smoot-Hawley Tariff Act of 1930, were major factors in the causing the Great Depression. One could validly criticize the Current actions of the Fed in creating so much currency and monetizing the US Debt as it has which may likely cause severe inflation.
But that has nothing to do with your claims which have no basis in fact or reality.
As Paul points out, the Federal Reserve is not a private institution which renders your entire point incorrect.
Whatever the Fed is, it's been ruining the US economy for decades. For many years interest rates were too high; now they're too low. This country is a mess. I remember years ago seeing the demolition of factories up in Chicago. Our cities are shells. Way to go Fed. Thanks for raping this country for Wall Street and London.
The Cyprus thing is far more scary to me than a few MRAPs scattered around the nation.
Actually, what is scary is that on several occasions, Obama has manipulated crowds into calling for him to become a dictator and no one has called him on this.
For those who doubt me, you've seen it, where he tells supporters that he isn't a dictator, he can't just do things and the crowds actually egg him on. Because no one ever called him on this is the reason why he is now doing things that are not supposed to be done without Congresses' permission. The sequester has just given him cover to do more of them and to smoke screen his actions.
I am reminded that after the Israelites left Egypt they actually had a Democracy. God was the leader and every person was given the freedom to do as they pleased. The 10 Commandments were their constitution and laws. Still they called for a King.
Obama has screwed things up bad, but through the help of the press not reporting it and examining his actions, he has managed to escape being held responsible. He always blames someone else. This is exactly how Mussolini and Hitler became dictators. The mess they created got bad enough that their nations was willing to accept bondage in order to clean it up. Of course, we all know what happened.
Just to bring history forward. The Progressive movement of the lat 19th and early 20th Centuries was very dictatorial. Their ideas was to force change upon society for its own good. Eugenics was birthed in this movement. Nazis and to and extent the Japanese adopted the notion that their nations were superior and in order to progress they needed to purify it even more.
Rev. Wright's church preached a form of Liberation Theology called, Black Liberation Theology. The core belief is that blacks are superior to whites and that whites are an inferior race. This of course is a turning inside out of the Progressive movement, which had believed the opposite. The Progressives are not doctrinaire, but rather are dictatorial. They will adopt any belief so long as they get to control things.
At the real heart of the present movement is that they need to make things right, correct so called injustices and such. What they are really saying is that they want to get even for a wrong or perceived wrong committed against them and to do so by harming the people or the people they believe committed this transgression. This vengeance is really based on envy and greed. This brings us to the basis for Progressive Liberalism, is envy and greed.
It isn't greedy to want to earn more and to keep what you've earned. After all, either God gave you that money or it is the fruits of the gifts God gave you. It is greed when someone says that another person earns enough or too much and that government needs to make things equal and take or tax those earnings from them. Liberalism is the breaking of the 10th Commandment, "Thou shalt not covet thy neighbor's property." In a free society, my money IS my property.
Progressive Liberals sow sloth in the minds of people with the notion that they are entitled to something. This then becomes the empitusto tax, as in the US, or take, as in Europe, people's property, their money, from them. Since they are not entitled to that money and must conspire with government to take it from us, they are breaking the 6th Commandment, "Thou shalt not steal."
When Progressive Liberals sit in judgment over someone who may have earned more than them, they place themselves in God's stead and break the 1st Commandment, "Thou shalt not have other gods before me." Progressivism, Socialism, Communism, Liberalism, what ever you call it, is based upon sin.
Our parish priest just finished a book and suggested reading it called, "They fired the first shot." The author describes how Liberalism destroyes virtue.