Now more than ever Americans should be asking the question: who owns the Federal Reserve?
As the Federal Reserve will tell you, the Federal Reserve System was created in 1913 by the Federal Reserve Act to serve as the nation's central bank and is not owned by anyone.
Although this is true, there is far more of importance to America than this simple answer provides.
A general bias towards capital that has existed from the beginning of the Federal Reserve System has allowed the Federal Reserve Bank of New York to dominate it's operation.
At the outset of the Federal Reserve System, the New York Fed held 85% of the system's capital, a figure which has only dropped to 48% today.
The Federal Reserve Bank of New York has consistently been the largest (by assets), most active (by transaction volume) and most influential of the 12 reserve banks since the Federal Reserve System was created.
Rather than who owns the Federal Reserve System, the most relevant question seems to be who owns the privately-owned Federal Reserve Bank of New York?
Or, to put it differently, whoever owns the Federal Reserve Bank of New York pretty much controls the Federal Reserve System, and has since its formation over a century ago.
The U.S. monetary system controlled by the Federal Reserve Bank of New York is a direct descendant of the 'sterling' currency established by the Bank of England upon its formation in 1694.
Despite the economic chaos caused by the coronavirus pandemic, this monetary system has seen more wealth created in the past year than in any year since 1694, as either a percentage or in amount.
A significant amount of the wealth created belongs to China.
Indeed, the coronavirus pandemic has created more Chinese billionaires than American ones.
In fact, the global financial system that evolved alongside the Federal Reserve System makes America surprisingly dependent on China for key necessities.
China produces 97% of U.S. antibiotics and 80% of the active ingredients in U.S. pharmaceutical drugs.
China accounts for 80% of the world's supply of rare earth minerals that make high-technology products like smart phones and electric cars work.
This short book explores the formation, history and ownership of the Federal Reserve Bank of New York, and its connection to the Bank of England.
