Home | Community | Message Board

Kratom Eye
Please support our sponsors.

General Interest >> Political Discussion

Welcome to the Shroomery Message Board! You are experiencing a small sample of what the site has to offer. Please login or register to post messages and view our exclusive members-only content. You'll gain access to additional forums, file attachments, board customizations, encrypted private messages, and much more!

Jump to first unread post. Pages: 1
old hand

Registered: 02/14/04
Posts: 4,102
Last seen: 6 years, 5 months
American currency
    #3940946 - 03/19/05 07:05 PM (11 years, 7 months ago)

There're alot of posts dealing with the history and status of money in the US. Here's what I understand, having done a little research. Please point out any mistakes I make.

Coins and bills are handled separately.

Coins are minted by the treasury. When a Federal reserve branch wants coins, they transfer money to the treasury's account in an amount equal to the coins to be delivered. Any difference between the cost of minting the coins and their value ends up as revenue for the federal government (US mint). Circulating coin revenue is around 250-300 million dollars/year.

When the federal reserve (New york) wants bills, they pay the Bureau of engraving (Dept. Treas.) for the cost of printing the bills. They are required to have resources equal to the face value of bills in circulation - ie. bills are a liability for the federal reserve, and by law must be backed by other assets. There are basically three types of resources backing the circulating bills: federal debt, gold certificates, and SDR certificates. Gold certificates are claims on US gold reserves held by the US Mint. SDR (special drawing rights) is an international currency basket for governments, composed of certain amounts of dollars, euros, yen, pounds, etc.
By far the largest single resource held by the federal reserve against circulating currency is federal debt - T-bills, certificates, and bonds.
The total value of all bills in circulation is around $750 billion.

I'm not sure what conclusions to draw from this yet, but it's not quite the same thing as previous fiat currencies. The difference is the requirement that the federal reserve have assets equal ling the total value of all bills in circulation. This prevents the arbitrary printing of money, to finance a war or what have you - which was always the downfall of fiat currencies.

Edited by phi1618 (03/19/05 07:25 PM)

Post Extras: Print Post  Remind Me! Notify Moderator
Senior ChildMolestationExpert
Registered: 06/12/03
Posts: 3,104
Loc: florida
Last seen: 7 years, 2 months
Re: American currency [Re: phi1618]
    #3941053 - 03/19/05 07:25 PM (11 years, 7 months ago)

I've posted this quote by Thomas Jefferson before but ...


I believe that banking institutions are more dangerous to our liberties than standing armies . . . If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] . . . will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered . . . The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.

It is better to be hated for what you are than to be loved for what you are not. -Andre Gide

"Generosity is nothing else than a craze to possess. All which I abandon, all which I give, I enjoy in a higher manner through the fact that I give it away. To give is to enjoy possessively the object which one gives."

Post Extras: Print Post  Remind Me! Notify Moderator
old hand

Registered: 02/14/04
Posts: 4,102
Last seen: 6 years, 5 months
Re: American currency [Re: cb9fl]
    #3941060 - 03/19/05 07:27 PM (11 years, 7 months ago)

The Federal Reserve system is fairly unique, and unlike the systems that Jefferson was familiar with. It might be a problem, and Jefferson might disapprove - but it's not what he was referring to in that quote.

If I'm being robbed, I want to know how, so I know what to do about it.

Post Extras: Print Post  Remind Me! Notify Moderator
prophet of God
 User Gallery

Registered: 09/05/04
Posts: 953
Re: American currency [Re: phi1618]
    #3941640 - 03/19/05 10:12 PM (11 years, 7 months ago)



This guy is just trying to justify his habit of trying to get as much drugs and alcohol into his body as possible, either through his own natural orifices or those created by a needle.

Edited by Great_Satan (03/19/05 10:13 PM)

Post Extras: Print Post  Remind Me! Notify Moderator
liberal pussy
Female User Gallery
Registered: 05/21/02
Posts: 5,646
Loc: innsmouth..MA
Re: American currency [Re: phi1618]
    #3941673 - 03/19/05 10:26 PM (11 years, 7 months ago)


"anchor blocks counteract the process of pontiprobation..while omalean globes regulize the pressure"...

Post Extras: Print Post  Remind Me! Notify Moderator
old hand

Registered: 02/14/04
Posts: 4,102
Last seen: 6 years, 5 months
Re: American currency [Re: Annapurna1]
    #3941772 - 03/19/05 11:11 PM (11 years, 7 months ago)

There are 12 regional Reserve Banks. These banks are "owned" by member banks - if a bank wants to participate in the Federal Reserve System, it has to buy a share of stock in the appropriate Reserve Bank. Stock in a Reserve Bank pays 6% dividend (by law), and cannot be used as security for any debt.

Any profits that a Reserve Bank makes beyond it's operating expenses are returned to the federal government - they mostly come from interest payments on the federal debt used to secure currency.

Finally, Reserve Bank stock ownership doesn't give much influence over the functioning of the Federal Reserve. The seven members of the Board of Governors of the Federal Reserve are appointed by the President and confirmed by Congress. Member banks do have significant influence, but not total control, over the selection of the Board of Directors for their regional Reserve Bank. You can read about that here: http://www.federalreserve.gov/pubs/frseries/frseri4.htm

So, the banks own the Reserve Bank stock, and whoever owns the banks owns most of the Reserve Bank stock.
But it just doesn't much matter who owns the Reserve Banks. The government appoints their governors, and their profits go to the government.

Ownership info from:

Post Extras: Print Post  Remind Me! Notify Moderator
Jump to top. Pages: 1

General Interest >> Political Discussion

Similar ThreadsPosterViewsRepliesLast post
* What happens if Saudi Arabia decouples its currency with the $ vintage_gonzo 683 5 02/11/08 10:05 PM
by iateshaggy
* Federal Reserve Questions... RonoS 1,018 16 09/19/02 09:32 AM
by Anonymous
* North American Super-State?
( 1 2 all )
Psilocybeingzz 2,845 21 06/25/07 07:02 PM
by Psilocybeingzz
* North American Union - End of the US as we know it.
( 1 2 3 all )
daussaulit 3,489 53 07/09/06 01:58 AM
by Economist
* paper money as currency?Inflation? stock HOW?? fake economy?
( 1 2 all )
kaiowas 1,968 22 08/26/03 10:37 AM
by Anonymous
* Must Read: History Of The Federal Reserve FrankieJustTrypt 1,476 17 02/15/04 08:48 AM
by Phred
* Iran and Venezuela: Petition Opec to peg oil to currency other then USD$ The_Red_Crayon 641 6 11/20/07 06:24 PM
by EntheogenicPeace
* Ron Paul on the Federal Reserve
( 1 2 all )
TheHateCamel 2,019 34 04/30/07 12:40 PM
by RosettaStoned

Extra information
You cannot start new topics / You cannot reply to topics
HTML is disabled / BBCode is enabled
Moderator: Prisoner#1, Enlil
521 topic views. 1 members, 2 guests and 4 web crawlers are browsing this forum.
[ Toggle Favorite | Print Topic | Stats ]
Search this thread:
Please support our sponsors.

Copyright 1997-2016 Mind Media. Some rights reserved.

Generated in 0.048 seconds spending 0.003 seconds on 14 queries.