The Ultimate Power of FED
We all know that the Federal Reserve (Fed) is a privately owned company which is also acts as the central banking system of the United States, and it plays a critical role in managing the country's money supply.
The Fed has two main responsibilities: to maintain price stability and to promote maximum employment. One of the key tools it uses to achieve these goals is controlling the money supply. In this article, we will explore how the Fed prints money and reduces the excessive money supply.
Printing Money (producing black money)
The Fed can increase the money supply by buying government securities, such as Treasury bonds, from banks. When the Fed buys these securities, it pays for them with newly created money, which is credited to the bank's accounts at the Fed. This process is known as open market operations and is the primary way the Fed increases the money supply.
Reducing Excessive Money Supply (whitening black money)
When the money supply grows too rapidly, the Fed can take steps to reduce it. The Fed does this to control inflation, which is a sustained increase in the general price level of goods and services. High inflation can have negative effects on the economy, such as reducing purchasing power, hurting the value of savings, and distorting price signals.
To reduce the excessive money supply, the Fed can sell government securities back to banks, reducing the number of reserves in the banking system. The Fed can also raise the reserve requirement, which is the percentage of deposits that banks must hold as reserves. When the reserve requirement is increased, banks have less money to lend, which reduces the money supply.
Another tool the Fed uses to reduce the money supply is the discount rate, which is the interest rate at which banks can borrow money from the Fed. If the discount rate is raised, it makes borrowing more expensive for banks, which reduces their ability to lend money and slows down economic growth.
The Federal Reserve plays a crucial role in managing the money supply. By using tools such as open market operations, the reserve requirement, and the discount rate, the Fed can control the growth of the money supply, balancing the goals of price stability and maximum employment. Interestingly people who control money have the ability to determine anything in our life.
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@shahriar33
Good work.
I like to point out good inflation and bad inflation. Good is adding to the money supply to meet the extra cash needed to match growth. Bad is adding money to pay for over spending.
I also don't like the fact that the US government is not transparent with their financial statements. They voted not too long ago to let the military budget be dark. They say for "national security" reasons. I don't trust them.
Also I like the document you found last November:
The Federal Reserve Cartel: The Eight Families By Dean Henderson Global Research, October 09, 2022
This carefully researched article was first published by
Global Research on June 1, 2011. The Four Horsemen of Banking (Bank of America, JP Morgan Chase, Citigroup and Wells Fargo) own the Four Horsemen of Oil (Exxon Mobil, Royal Dutch/Shell, BP and Chevron Texaco); in tandem with Deutsche Bank, BNP, Barclays and other European old money behemoths. But their monopoly over the global economy does not end at the edge of the oil patch. According to company 10K filings to the SEC, the Four Horsemen of Banking are among the top ten stock holders of virtually every Fortune 500 corporation. So who then are the stockholders in these money center banks?
This information is guarded much more closely. The queries to bank regulatory agencies regarding stock ownership in the top 25 US bank holding companies were given Freedom of Information Act status, before being denied on “national security” grounds. This is rather
ironic, since many of the bank’s stockholders reside in Europe.
Thanks .
I often wonder why I never hear from you about my version of the coming Monetary Correction...
A gradual increase of about 2% inflation is required to expand a healthy economy but more than that is considered bad, one of the worst cases can be when the government doesn't become transparent and abuses power to hold its position, print money internally and resulting devastating market collapse, rising inflation, rising living costs, which is an ultimate burden to the general people.
Thank you, friend!
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