Is the FED USA's national mafia/ communist/ ponzi scheme?

The following is what some participants in HWZ forums said:

wallacetan wrote:

Orig thread: 'Interest rate' solution to inflation- a case of mere optical illusion?

peterchan75 wrote:

The Fed can control both money supply and interest rates. Becuase they are the bond buyer of last resort if there is no buyer. ...
The only thing that the Fed cannot control is inflation.

Just to clarify, the Federal Reserve (Fed) is a Private Financial Institution privately owned by U.S. member banks.
The Fed is legally prohibited from buying debt directly from the Treasury. See Federal Reserve can’t rescue debt debacle.
U.S. Gov Bonds are issued by the Treasury.
Treasury Bonds, Bills, and Notes are all issued in face values of $1,000.
Which means the bond holder can redeemed $1,000 from the U.S. Treasury at the maturity date.
... ...
The Fed purchase the bonds/debt/mortgages/assets from the open market with money created out of thin air. i.e. Fed print the money, exchange for Bonds, and the Bonds are on the Fed's balance sheet.
New money that was created out of thin air is now 'backed' by the U.S. Gov. Bond on Fed's balance sheet.

Information from 'Who owns the Federal Reserve?' is excerpted as follows:

Quote:

Who owns the Federal Reserve?The Federal Reserve System fulfills its public mission as an independent entity within government. It is not "owned" by anyone and is not a private, profit-making institution.
As the nation's central bank, the Federal Reserve derives its authority from the Congress of the United States. It is considered an independent central bank because its monetary policy decisions do not have to be approved by the President or anyone else in the executive or legislative branches of government, it does not receive funding appropriated by the Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms.
However, the Federal Reserve is subject to oversight by the Congress, which often reviews the Federal Reserve's activities and can alter its responsibilities by statute. Therefore, the Federal Reserve can be more accurately described as "independent within the government" rather than "independent of government."
The 12 regional Federal Reserve Banks, which were established by the Congress as the operating arms of the nation's central banking system, are organized similarly to private corporations--possibly leading to some confusion about "ownership." For example, the Reserve Banks issue shares of stock to member banks. However, owning Reserve Bank stock is quite different from owning stock in a private company. 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.

How is it possible for share holders of 'FED shares' to earn 6% legislated dividend per year if the FED by statute is supposed to be 'not for profit'? Are the holders of these shares in the FED private banks? If the FED is not a for-profit organisation, then where does the 6% dividend to shareholders come from- is it just the maximum amount of new USD currency that the directors of the FED can print to take home?

peterchan75 wrote:

Ron Paul wanted the Fed to open its book for audit. Bernanke didn't give a damn. ... ...

IOW, Bernanke is SENIOR to Obama since he doesn't even need to answer the question of Mr Ron Paul who is a senator in congress (Obama has to answer to congress FYI which can veto his decisions). The FED can print USD, can pay itself (a non-profit organisation) 6% dividend from it's operations of perhaps mostly just buying T-bills/ bonds with newly printed currency which "do not have to be approved by the President or anyone else in the executive or legislative branches of government"
It seems thus to me that NKF under TT Durai was perhaps much better shape than the Central Bank/ economy of the United States of America- is the FED the mafia running the USA?

[pict source: Criminal Cartel Moves Forward With Printing $500 Billion In Funny Money]

[pict source: Dear Ben, Please Print Us More Money]

[Source: Hyperinflation In Zimbabwe]
==========
At:
HWZ:
09May2012: Is the FED USA's national mafia/ communist/ ponzi scheme?
A1:
09May2012: Is the FED some kind of national mafia/ communist/ ponzi scheme?
SBY:
09May2012: Is the FED some kind of national mafia/ communist/ ponzi scheme?
SGC:
09May2012: Is the FED some kind of national mafia/ communist/ Nazi/ ponzi scheme?