The shocking realization that the Federal Reserve Bank is privately owned by its member banks is one of the defining moments in any truthseeker's life. Eustace Mullins, coached by the indefatigable Ezra Pound, wrote 'The Secrets of the Federal Reserve', listing the banks owning the system. Ed Griffin then infamously plagiarized this book with his 'Creature of Jekyll Island', to push the John Birch/Libertarian Gold Standard. We're still dealing with this today, as seen in the 'End the Fed' movement.
The FED itself is now starting to move against its critics, claiming they ARE a Government institution, although partly independent. As Central Banks should be, which is today's conventional wisdom in the Mainstream.
Here's some text from the link, from the Fed itself:
"The 12 regional Federal Reserve Banks, which were established by the Congress as the operating arms of the nation's central banking system, are organized similarly to 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."So while the Fed tries to downplay private ownership, it does not deny it. Its stock cannot be traded, but this is not a limitation; it's a sure way of keeping outsiders out. After all, it's a club, and we're not in it. Furthermore, a dividend of 6% per year is not bad.
On the other hand, after paying its shareholders, the Federal Reserve returns what remains to the US Government, so it's not entirely fair to say that the Fed is printing money and then has the State pay interest on it. It refunded $89 billion in interest in 2012 after taking its 6% dividend cut. The private banks do most of the money creation by far.
EUROPE
It becomes even more complicated when we realize that all European central banks are completely publicly owned. They are corporations with 100% government ownership. They do operate as 'independent' entities, though. Before the ECB, they set interest rates and managed the volume without Government interference. Nowadays, this is done by the ECB, which in turn is owned outright by the national Central Banks.
Before the Second World War, all European Central Banks were owned privately. But the massive upheaval caused by the Great Depression and the powerful monetary reform movements that shook the Money Power had raised awareness about private ownership of the financial systems of the West and nationalizing the Central Banks was a handy way of diverting attention. After the war all major European Central Banks became publicly owned.
Therefore, it is incorrect to state that Rothschild owns all Central Banks! This is important, because getting straightforward facts like these wrong is clearly damaging the credibility of conspiracy theorists.
CONTROL VS OWNERSHIP
Central Banks were created by the banks for the simple reason that Fractional Reserve Banking is incredibly unstable. There is an incentive for the banksters to loan out more than they can cover with fractional reserves, leading to all sorts of busts. This was hurting the Money Power's control over the money supplies of the world and central banks were created as 'lenders of the last resort.' In case of a panic, a Central Bank could keep busted banks afloat, maintaining sufficient confidence in the system.
Furthermore, they were useful tools for Sovereign borrowing. The basic contract between national governments and central banks was that the central bank would always provide the state with all the money it would ever need, in return for guaranteed interest payments through taxation.
Also important was the monopoly on national currency. In earlier days, both in Europe and the US, free banking and local Sovereign money created a diverse monetary environment, more difficult for the Money Power to control. By 'legal tender' laws their units became the sole accepted way of paying taxes, giving the banking units a massive advantage in the market place. These were the early steps in further and further monetary centralization in ever fewer units, with World Currency as the final goal.
Finally Central Banks 'regulate' banks. This is a simple trick: make regulation incredibly complex and expensive, and it becomes impossible for the vast majority of market players to comply. It's the same deal as the Pharma Mafia has with the FDA: new drugs are so incredibly expensive to test that it is impossible for low cost natural cures to go through the process. Exit competition and another excuse to keep prices artificially high for the cartel.
CONCLUSION
Public vs. Private is just another dialectic. It matters not whether money is managed privately or publicly. What matters is whether we have stable and cheap (interest-free) money. If a private interest-free mutual credit facility can provide it, grand. If Government can do it, fine. A mixture of both is probably the way forward.
Central banks are a mixture of both: they have public and private aspects. But the bottom line is that central banks do the bidding of the Money Power. It originated in Babylon and spread through the world. It hides within proxies, most notably Freemasonry and the Vatican. And of course the Banking Cartel, which is a global, monolithic bloc. Through banking it also controls all major industries. This power base allows them to control every Government and every Nation on the Globe and they are looking to externalize the Hierarchy in a New World Order.
Central banks are staffed by Goldman Sachs alumni. They keep competition out of the market. They prop up busted banks, maintaining some kind of 'stability'. They oversee private usurious credit creation and maintain the banks' ability to rake in trillions per year in interest. They allow the banks to create the boom/bust cycle.
It's high time for a new paradigm.
by Anthony Migchels
http://henrymakow.com/
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