[OT] Ameros will clog the tubes - was Re: Network Neutrality

Michael Torrie torriem at gmail.com
Thu Dec 4 16:21:02 MST 2008


Nicholas Leippe wrote:
> On Thursday 04 December 2008 03:31:29 pm Kyle Waters wrote:
>> The federal reserve is a government agency the works with private
>> enterprise to regulate the economy.  The top officials of the reserve
>> are presidential appointees.  There are officials that are elected by
>> private banks, but those officials report to the elected officials, who
>> then determine the economic policies, not the other way around.
> 
> This is the very popular misconception, exactly what the creators of the fraud 
> want everyone to think. The federal reserve is a *private* bank, controlled by 
> *private* interests. It is *not* a government agency. It is neither federal, 
> nor has any reserves.

Studying the history of the fed, I find your view flawed.  We cannot say
it is a government agency, nor can we say it's a private bank.  It's
really both.  A compromise between the two ideas.  The board of
directors at the top of the system are appointed by the president and
ratified by congress.  In fact they report to congress.  I am pretty
sure congress can, if they choose, pull them out.  They are there to
make sure the fed enacts the policies put forth by the president and by
congress.  The recent so-called bailout by the government very much came
about through actions of congress directing the fed how to act in
regards to taking money from the treasury (increasing the money supply)
and giving it to these failing institutions.  Now Congress did
essentially give Bernenke a blank check.  He ended up doing things
differently than he first said he would do.  That's congress's fault really.

> Try this simple test: look it up in the phone book. Does it appear in the 
> government pages, or in the business white pages? Yep. In the business pages, 
> after Federal Express...

Umm, that proves absolutely nothing, except that the local branches of
the fed have private components, which they do.  In fact the main
website for the fed is at http://federalreserve.gov but the sites for
the 12 individual regional branches are .org.

> "He who has the gold, makes the rules."
> 
> Do you really think the president has a say in who he appoints to the board? 
> They have the gold, they make the rules. Nothing has changed the truth of that 
> proverb, and nothing will. Even if he did get to appoint someone of his own 
> choosing, do you really think the other directors listen to *him*, or do you 
> think *he* listens to *them*?  I'll even take bets on this one.

Yes the president does have a say.  He really does.  they are his
nominees after all, provided congress agrees.  Congress still controls
the treasury (or is it the president... hard to know).




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