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Learn how the Central Bank that Runs today’s economic system: the US federal reserve is not owned by either the US government or the US people:


Federal Reserve Act

Section 5. Stock Issues; Increase and Decrease of Capital
1. Amount of shares; increase and decrease of capital; surrender and cancellation of stock
The capital stock of each Federal reserve bank shall be divided into shares of $100 each. 
The outstanding capital stock shall be increased from time to time as member banks increase their capital 
stock and surplus or as additional banks become members, and may be decreased as member banks reduce their 
capital  stock or surplus or cease to be members. Shares of the capital stock of Federal reserve banks 
owned by member banks shall not be transferred or hypothecated. When a member bank increases its capital 
stock or surplus,it shall thereupon subscribe for an additional amount of capital stock of the Federal 
reserve bank of its district equal to 6 per centum of the said increase, one-half of said subscription to 
be paid in the manner herein before provided for original subscription, and one-half subject to call of 
the Board of Governors of the Federal Reserve System. 

today's economy DominoesA bank applying for stock in a Federal reserve bank at any time 
after the organization thereof must subscribe for an amount of the 
capital stock of the Federal reserve bank equal to 6 per centum of 
the paid-up capital stock and surplus of said applicant bank, 
paying therefor its par value plus one-half of 1 percentum a month 
from the period of the last dividend. 

When a member bank reduces its capital stock or surplus it shall 
surrender a proportionate amount of its holdings in the capital 
stock of said Federal Reserve bank. Any member bank which holds 
capital stock of aFederal Reserve bank in excess of the amount required on the basis of 6 per centum of 
its paid-up capital stock and surplus shall surrender such excess stock. When a member bank voluntarily 
liquidates it shall surrender all of its holdings of the capital stock of said Federal Reserve bank and 
be released from its stock subscription not previously called. 

In any such case the shares surrendered shall be canceled and the member bank shall receive in payment 
therefor, under regulations to be prescribed by the Board of Governors of the Federal Reserve System, a 
sum equal to its cash-paid subscriptions on the shares surrendered and one-half of 1 per centum a month 
from the period of the last dividend, not to exceed the book value thereof, less any liability of such 
member bank to the Federal Reserve bank.

[12 USC 287. As amended by act of Aug. 23, 1935 (49 Stat. 713).]
Last update: 
May 23, 2013

Learn more from one of the best economic mentors the world has to offer!

“The Federal Reserve believes it can create money out of thin air,  not realizing that money is supposed to represent real products and services.  And what people don’t realize is that when the Fed ( Federal Reserve ) does that… it’s a form of taxation, it’s a form of confiscation.  And because people don’t see it, the politicos get away with it.  But it also undermines social trust. It just is corrosive throughout society.”

– Steve Forbes