What's the Big Deal About the Fed?
The Federal Reserve, informally know as the "Fed," is the U.S.'s central baking system. Woodrow Wilson created the Fed in 1913 as a measure to help balance and buttress the American monetary system. It was opposed by many legislators of the time, and has since been the target of conspiracy theorists who believe that it purposefully causes recessions and triggers inflation to ultimately keep Americans in fiscal slavery. Fortunately, these are just myths—the Fed is not a private organization, like most people think, and is actually ran by a Board of Governors appointed by the President.
The shareholder banks that make up the Fed actually have no voting power in any of its decisions—bureaucrats appointed by the government make those decisions. So contrary to what many people think? The Fed doesn't own the government, and the video below discusses just why that's the case by highlighting what's really up with the Federal Reserve.
After 100+ years of Congressional fisticuffs over whether or not to create a Central Bank, the Federal Reserve was created in 1913 by President Woodrow Wilson to help stabilize the American monetary system. Not everyone was a fan: Congressman Charles Lindbergh called it "the worst legislative crime of the ages".
So What's the Big Deal?
Since it's inception, the Fed has been the subject of conspiracy theories alleging it creates inflation, recessions, and even the Great Depression through manipulation of the money supply.
The typical argument against the Fed is that it's a private corporation partially run by the same banks it's supposed to regulate. This basic misconception leads anti-Fed debaters to conclude that the Fed is completely private. It's not. "The Fed, like most central banks in the world, is considered 'independent' only in that it handles its day-to-day operations without oversight by the Federal Government. But its chairman and board of governors are appointed by the president and it's subject to Congressional legislation and the Treasury Department."
Since the Fed was created by Congressional charter, they are not organized like a normal corporation. Shareholder banks have no voting power, and all decisions are by government-appointed bureaucrats.
Finally, the biggest myth is that the Fed "owns" the government. The claim is that the Fed lends money to the government at interest, thereby stealing "the people's" money and selling us into debt slavery. The only problem? The interest on debt held by the Fed actually goes to two places: One, the Fed pays itself out of this interest to cover its own operating costs, and two, the rest of the interest is rebated to the treasury. So, no, the Fed does not own the government.