saladdin

USA is not a democracy but republic country. and
Federal reserve is Privately held company by 12 or so largest world banks.

Do not take my word for it, do your own independent search on yahoo or google for few sites (various pros and cons) yourself.

However, the Federal Reserve is subject to oversight by Congress, which periodically reviews its activities and can alter its responsibilities by statute. Also, the Federal Reserve must work within the framework of the overall objectives of economic and financial policy established by the government. Therefore, the Federal Reserve can be more accurately described as “independent within the government.”

The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year.

http://www.federalreserve.gov/generalinfo/faq/faqfrs.htm

saladdin

Another fun term is “strawman” where you claim that I said the Federal Reserve is “truly independent.” I did not. I said it is a privately held bank. The owners of the Federal reserve are private investors.

Yes the government has some influence, but the government doesn’t own or control it. Go read some of Bernake’s congressional testimony. It goes like this. “Congress: Can you tell us X about what you’re doing? Bernake: No, we don’t have to tell you, and we’re not going to.”

There are plenty of other private or public corporations with government regulation (utility compaines for example), but we don’t consider them a part of the government, either.

saladdin