Subject:
Federal Reserve Bank The United States Federal Reserve System consists of twelve Federal Reserve Banks, each responsible for a particular district, and some with branches.
The Federal Reserve System was created by the Federal Reserve Act of 1913 which “established a new central bank designed to add both flexibility and strength to the nation’s financial system. The legislation provided for a system that included a number of regional Federal Reserve Banks and a seven-member governing board. All national banks were required to join the system and other banks could join. The Federal Reserve Banks opened for business in November 1914. Congress created Federal Reserve notes to provide the nation with an elastic supply of currency. The notes were to be issued to Federal Reserve Banks for subsequent transmittal to banking institutions in accordance with the needs of the public.
The Federal Reserve Banks issue shares of stock to member banks. However, owning Federal Reserve Bank stock is quite different from owning stock in a private company. The Federal 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 or traded or pledged as security for a loan; dividends are, by law, limited to 6 percent per year. (Wikipedia Jan 2010)
Euros versus the dollar
By John Schroy, on July 2nd, 2010 | 
The multiplicity of independent central banks is the Achilles heel of the eurosystem. A bank, controlled by the government, in a fiat money environment, that acts as the paying agent for that government, has — in effect — the capability to print money (although not necessarily banknotes).
Imagine, tomorrow the headlines in the Wall Street Journal read “$100 billion is inflationary euros issued without the knowledge of the European Central Bank”. What would be the effect of the news on the value of the euro as a reserve currency?
Deflation Economics
By John Schroy, on April 10th, 2010 | 
Deflation is said to occur when general price levels fall. The last important example of general deflation in the United States occurred during the Great Depression. Federal Reserve officials and central bankers around the world often regard deflation as a greater risk than inflation. Under the Obama administration, US central bankers are now wary of both deflation and inflation.
US tax policy
By John Schroy, on March 7th, 2010 | 
If we are to believe the old adage that, ‘people vote their pocketbooks’, why are so many of the Super-Rich ardent supporters of the Democratic Party?
Why do the liberal Super-Rich seem to act in a way that is so contrary to their selfish interests and economic well-being?
Here I show how capital flow analysis of the Federal Reserve flow of funds accounts provides an answer to this apparent conundrum.
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