The printing press is running at full speed in the United States. And since money is supposed to be a public good, it is interesting to know who owns the Federal Reserve… What we find by scratching a little contrasts sharply with Bitcoin whose decentralized and democratic elegance of its protocol opposes opaque and private interestsés of a few bankers …
The New York branch of the Federal Reserve has loaned more than 6000 billion to Wall Street banks since the so-called “ Repo “, In 2019. This is very short term loans to prevent American banks from stopping lending in them, which would lead to a credit crunch and a 2008-like recession. We still do not know exactly why the Fed had to intervene in the market for ” repo “But you don’t have to be a clairvoyant to understand that banks are addicted to liquidity …
Repo loans are repaid quickly but the FED is also injecting trillions through other channels including the ” Quantitative Easing “. These billions remain forever in the banks as the US Central Bank redeems the (long-term) debt of the United States with fresh money. The Fed Balance Sheet recently made a good 3 trillion from 4 trillion to 7 trillion since the start of the year and the “Covid crisis”.
So much money that ends up in the pockets of the 1% and in particular the billionaires like Jeff Bezos, Elon Musk or Bill Gates… A striking contrast with all the small companies which close en masse because of the Covid psychosis and this confinement which we know today was of no use except to give a new excuse to the white-collar mafia to print trillions. Billions that will be loaned to accomplice multinationals whose mission is to take the place of small businesses that have collapsed … #Amazon
So who is behind the New York FED?
As you can see from the following graph (which is somewhat dated), the NY FED is by far the largest of the 12 regional FEDs that make up the Federal Reserve (FED). Its balance sheet is larger than the combined balance sheet of all other branches (The Boston, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Mineapolis, Kansas, Dallas and San Francisco FEDs). See the difference between the Balance Sheet of the FED of San Francisco, whose area of influence would represent the fifth largest economic power in the world if it were a country.
The President of the NY Fed, John williams, earns nearly $ 500,000 per year, more than the President of the United States.
The NY Fed is special in the sense that its president sits permanently within the FOMC, the decision-making body of the Federal Reserve. Conversely, the presidents of the other EDFs sit there on a pre-established rotation. The NY Fed is also the sole EDF in charge of the sale of US debt securities to private banks and the only one who owns the gold other nations in its coffers.
Now that this little presentation is over, let’s get to the heart of the matter. Who are the owners of 12 regional EDFs which presides over the monetary policy of the United States. These unelected loan sharks who decide how quickly to print money ?
JP Morgan, Goldman Sachs, Citigroup….
The shareholders of the NY FED are the banks headquartered in its jurisdiction. The international Wall Street banks that are the JP Morgan, Ctitigroup, Goldman Sachs, Morgan Stanley and Bank of New York Mellon. These five banks represent 2/3 of the balance sheets of the 8 American systemic banks. The other three being Bank of America (shareholder of the FED of Richmond), Wells Fargo (shareholder of the FED of San Francisco) and State Street (shareholder of the FED of Boston).
It is therefore the private banks that elect the president of the FED in their jurisdiction. These presidents then meet about once a month at Washington within the Federal Reserve to vote the country’s monetary policy. The latter is considered a federal agency ” independent “. Little difference therefore with the regional FEDs which, as we have said, are held by equally independent private banks.
And to be precise, let us note that each regional EDF has a council of 9 people. 6 people chosen by private banks and 3 people chosen by the Federal Reserve. Bankers choose the president of their FED from among these 3.
What about Bitcoin?
Bitcoin does not rest on a swamp of Russian banking dolls whose opacity obscures the real decision-makers of US monetary policy.
It is a democratic currency because these are the minors who decide his destiny. And anyone can mine Bitcoin.
”One CPU, one vote. “
It may be that a group of people decides one day to change the protocol of Bitcoin. For example to increase the number of Bitcoins from 21 million to 100 million … But for that it will be necessary to convince at least 51% of minors.
This is theoretically possible … But the consensus will be in any case more democratic that on the side of the FED of NY and its five banks controlling the majority of the votes… This is called in the jargon of proof of Stake…
But Bitcoin is based on the idea of a currency that is available in strictly limited supply, and changing the paradigm would immediately cause its value to collapse in favor of gold. That’s why you shouldn’t put all your eggs in one basket …
Child of Satoshi, the alchemist who turned a cryptographic algorithm into gold.
I’m talking about monetary geopolitics, not shitcoins.