Regional Fed banks should be public, says Yellen's ex-advisor

[eridani]

http://www.thefiscaltimes.com/latestnews/2016/04/11/Regional-Fed-banks-should-be-public-says-Yellens-ex-advisor

A former top Federal Reserve policy advisor called Monday for the Fed's 12 regional outposts to be made government entities, rather than owned, as they have been since their inception more than a century ago, by the banks they regulate.

Banks own shares in their regional Fed bank and appoint six of the nine members of the board, including three bank executives. While the Fed's powerful Washington-based Board, including the Fed Chair, is a government entity, the regional Fed banks are not. The U.S. central bank is the world's only major central bank that is not fully public.

Dartmouth College Professor Andrew Levin also called for seven-year term limits for all Fed policymakers, and stronger outside oversight of the U.S. central bank including annual reviews of monetary policy.

Policymakers often serve a decade or more before retiring, and the details of monetary policymaking have always been a closely guarded secret, with transcripts of meetings released only after a five-year interval.

Levin, who advised Fed Chair Janet Yellen when she was Fed vice chair, released the proposals via the Fed Up Coalition, a network of community organizations and labor unions calling for change to the U.S. central bank. It is unclear how they will be received by other Fed critics who have called for even more sweeping changes, or the institution itself, which has largely resisted reform proposals.

[notadmblnd]

1. Wow. That could get somebody killed.

President John F.Kennedy,
The Federal Reserve
And Executive Order 11110



by Cedric X

From The Final Call, Vol. 15, No.6, On January 17, 1996

On June 4, 1963, a little known attempt was made to strip the Federal Reserve Bank of its power to loan money to the government at interest. On that day President John F. Kennedy signed Executive Order No. 11110 that returned to the U.S. government the power to issue currency, without going through the Federal Reserve. Mr. Kennedy's order gave the Treasury the power "to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury." This meant that for every ounce of silver in the U.S. Treasury's vault, the government could introduce new money into circulation. In all, Kennedy brought nearly $4.3 billion in U.S. notes into circulation. The ramifications of this bill are enormous.

With the stroke of a pen, Mr. Kennedy was on his way to putting the Federal Reserve Bank of New York out of business. If enough of these silver certificats were to come into circulation they would have eliminated the demand for Federal Reserve notes. This is because the silver certificates are backed by silver and the Federal Reserve notes are not backed by anything. Executive Order 11110 could have prevented the national debt from reaching its current level, because it would have given the gevernment the ability to repay its debt without going to the Federal Reserve and being charged interest in order to create the new money. Executive Order 11110 gave the U.S. the ability to create its own money backed by silver.

After Mr. Kennedy was assassinated just five months later, no more silver certificates were issued. The Final Call has learned that the Executive Order was never repealed by any U.S. President through an Executive Order and is still valid. Why then has no president utilized it? Virtually all of the nearly $6 trillion in debt has been created since 1963, and if a U.S. president had utilized Executive Order 11110 the debt would be nowhere near the current level. Perhaps the assassination of JFK was a warning to future presidents who would think to eliminate the U.S. debt by eliminating the Federal Reserve's control over the creation of money. Mr. Kennedy challenged the government of money by challenging the two most successful vehicles that have ever been used to drive up debt - war and the creation of money by a privately-owned central bank. His efforts to have all troops out of Vietnam by 1965 and Executive Order 11110 would have severely cut into the profits and control of the New York banking establishment. As America's debt reaches unbearable levels and a conflict emerges in Bosnia that will further increase America's debt, one is force to ask, will President Clinton have the courage to consider utilizing Executive Order 11110 and, if so, is he willing to pay the ultimate price for doing so?

http://www.john-f-kennedy.net/executiveorder11110.htm