The 12 regional Federal Reserve Banks are legally owned by member commercial banks. The largest shareholders of the New York Federal Reserve Bank (which handles the bulk of the system's market operations) are the largest banks in America:>JPMorgan Chase>Citigroup>Bank of America>Wells FargoBecause these banks are publicly traded on the stock market, they are owned by whoever buys their shares. If you pull the financial filings for JPMorgan Chase, Bank of America, and Citigroup, you will find the exact same institutional entities holding the largest blocks of voting shares:>The Vanguard Group (Owns ~9% to 10% of these banks)>BlackRock (Owns ~7% to 8% of these banks)>State Street Corporation (Owns ~4% to 5% of these banks)>Berkshire Hathaway (Warren Buffett's conglomerate, which famously holds large stakes in Bank of America)They do not legally own those bank stocks with their own money; they buy them using pools of capital provided by clients.If the debt is ultimately funded by the public's savings, why does it feel like a trap rather than a benefit to "The People"? Because the loop acts as a hidden mechanism that shifts wealth upward.When Congress spends money it doesn't have, and the Fed creates new currency to back it up, a process called the Cantillon Effect occurs. The government, Wall Street mega-banks, and primary dealers get to spend the newly created money first, before prices rise. By the time that money filters down to ordinary human beings, consumer prices have inflated.The nonsense situation is real: The public's retirement savings are used to buy the government's debt, while the printing of that very debt dilutes the purchasing power of the public's wages. The people holding the steering wheel are not the shareholders; they are the central bankers adjusting the dials of the economy and the politicians writing the checks.
TL;DR:>The National Debt is owed BY The People.>The National Debt is owed TO The People.Yes,really.
bumpnice thread
ponzi is proud
>>541767858That gay demon mammon
>>541767858Bondholders own tbe debtFuture taxpayers owe the debt
>>541767858The cantillion effect when viewed in terms of fiat currency... how is new money made? Via debt. How is new money made in gold backed monetary systems? Well you have to pull gold out of the ground.The gold mines that open up and who own them get the most immediate purchasing power. Just like how in fiat when someone takes out a loan they get the most immediate purchasing power (receive the thing they've taken a loan out for.)
>>541767858>>541767888checked, yes this is part of how the central bank system works (from the perspective of the United States, its Treasury and federal government / Congress's spending<--legislative branch controls purse strings), and how the large generations of 'money' are provided to primary dealers and their immediate cronies/underlings.This is not the entire explanation of post-1970s Financialization of the global economy, however. Nor does it explain Interest Payments of the United States government on all of the debt note fiat currency """"printed"""" into existence
>>541767858The banks owe themselves money.Somehow it gets written off as belonging to the US.Easy math to figure out.
At what point does money become redefined?How many zeroes are going to be added to the Trump Buck™ when it takes effect?
>>541767858No, banks are obligated to buy t-bills, bonds, treasuries for every dollar held within a bank account, which comes out as liability for the banks.To free up their balance sheets, so the banks can buy assets and create credits the fed buys maturing liabilities and rolls them over for higher interest to foreign and domestic bond holders. This goes well until large Treasury holders like Japan and China are forced to cash in, withdrawing liquidity from the markets. Which is why rates are going up atm.
>lol
>and lmao
