Controversy continues to rage about Central Bank ownership. Most major Central Banks, except for the FED, are publicly owned. However: this is not really important. Control is what matters and Central Banks are the Money Power’s centralized controllers, private or publicly owned.
The shocking realization that the Federal Reserve Bank is privately owned by its member banks is one of the defining moments in any Truthseeker’s path. Eustace Mullins, coached by the indefatigable Ezra Pound, wrote ‘the Secrets of the Federal Reserve’, listing the banks owning the system. Ed Griffin then infamously plagiarized this book with his ‘the Creature of Jekyll Island’, to push the John Birch/Libertarian poison of the Gold Standard as a solution. We’re still dealing with this today, as seen in the ‘End the Fed’ movement.
The FED itself is now starting to move against its critics, claiming they ARE a Government institution, although partly independent. As Central Banks should be, which is today’s conventional wisdom in the Mainstream.
Here’s some text from the link, from the FED itself:
“The 12 regional Federal Reserve Banks, which were established by the Congress as the operating arms of the nation’s central banking system, are organized similarly to private corporations–possibly leading to some confusion about “ownership.” For example, the Reserve Banks issue shares of stock to member banks. However, owning Reserve Bank stock is quite different from owning stock in a private company. The 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, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year.”
So while the FED tries to downplay private ownership, it does not deny it. Its stock cannot be traded, but this is not a limitation, it’s a sure way of keeping outsiders out. After all, it’s a club, and we’re not in it.
Furthermore, a dividend of 6% per year is not bad. It depends on the value of the stock, of course.
On the other hand, after paying its shareholders, the Federal Reserve returns what remains to the US Government, so it’s not entirely fair to say that the FED is printing money and then has the State pay interest on it. It paid the State 89 billion over 2012.
Nowadays the situation is even further confused by the fact that people like Tom Woods from the Hate the State crowd openly call Central Banks ‘statist’ operations, messing up the ever so fair ‘free market’ operations of the banks. They will say funny stuff, for instance claiming or implying that Central Banks are responsible for ‘money printing’, their dreaded enemy of ‘inflation’. However, it is the private banks that do by far the most of the money creation. They are the ones lending, after all, and they lend freshly created ‘credit’.
It becomes even more complicated when we realize that all European Central Banks are completely publicly owned. They are corporations with 100% Government ownership. They do operate as ‘independent’ entities, though. Before the ECB they set interest rates and managed the volume without Government interference. Nowadays this is done by the ECB, which in turn is owned outright by the national Central Banks.
Before the second World War, all European Central Banks were owned privately. But the massive upheaval caused by the Great Depression and the powerful monetary reform movements that shook the Money Power had raised awareness about private ownership of the financial systems of the West and nationalizing the Central Banks was a handy way of diverting this attention. After the war all major European Central Banks became publicly owned.
It is therefore simply wrong to state that Rothschild owns all Central Banks!
This is important, because getting straightforward facts like these wrong is clearly damaging the credibility of conspiracy theorists.
Control vs. Ownership
Central Banks were created by the Banks for the simple reason that Fractional Reserve Banking is incredibly unstable. There is an eternal incentive for the banksters to loan out more than they can cover with fractional reserves, leading to all sorts of destabilizing busts. This was hurting the Money Power’s control over the money supplies of the World and Central Banks were created as ‘lenders of the last resort’: in case of a panic a Central Bank could keep busted banks afloat, maintaining sufficient confidence in the system.
Furthermore, they were useful tools for Sovereign borrowing. The basic contract between Sovereigns and the Central Banks was, that the Central Bank would always provide the State with all the money it would ever need, in return for guaranteed interest payments through taxation.
Also important was the monopoly on national currency that is closely associated with Central Banking. In earlier days, both in Europe and the US, free banking and local Sovereign money created a diverse monetary environment, more difficult to control for the Money Power. By ‘legal tender’ laws their units became the sole accepted way of paying taxes, giving the banking units a massive advantage in the market place. These were the early steps in further and further monetary centralization in ever fewer units, with World Currency as its final goal.
And finally Central Banks have the opportunity to ‘regulate’ banks. This is a simple trick: make regulation incredibly complex and expensive, and it becomes impossible for the vast majority of market players to comply. It’s the same deal as the Pharma maffia has with the FDA: new drugs are so incredibly expensive to test that it is impossible for low cost natural cures to go through the process, as they will never provide the return necessary to cover the cost. Exit competition and another excuse to keep prices artificially high for the cartel.
Public vs. Private is just another dialectic. It matters not whether money is managed privately or publicly. What matters is whether we have stable and cheap (interest-free) money. If a private interest-free Mutual Credit facility can provide it, grand. If Government can do it, fine. A mixture of both is probably the way forward.
Central Banks are a mixture of both: they have public and private aspects. But the bottom line is that Central Banks do the bidding of the Money Power’s banking cartel. They keep competition out of the market. They prop up busted banks, maintaining some kind of ‘stability’. They oversee private usurious credit creation and maintain the banks’ ability to rake in trillions per year in interest. They allow the banks to create the boom/bust cycle.
High time for a new paradigm.
Several people have brought to my attention that it is simply wrong to state that all major CB’s except the Fed are private: the situation is far more mixed. Some European CB’s are (partly) privately owned and also a major CB like BoJ is publicly traded (and thus privately owned).
However, the basic proposition of the article, that it is wrong to say that Rothschild owns all CB’s and that it’s about control more than it is about ownership, still stands.
Nonetheless, this is an annoying slip, partly explained by the fact by my geographic location: the Dutch CB and the Bundesbank for instance are completely publicly owned.