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Illegal to Own Gold? Executive Order 6102 required everyone to turn over all their gold ownership except for up to $100 in Gold Coins. The bill was signed April 5, 1933. Citizens were to deliver gold by May 1, 1933 The intention was to increase to value of Gold. Value was changed from $20.67 to $35. Gerald Ford appealed the order which went into effect December 31, 1974 •Who owns the Federal Reserve? •The Federal Reserve System is not "owned" by anyone and is not a private, profit-making institution. Instead, it is an independent entity within the government, having both public purposes and private aspects. •The twelve regional Federal Reserve Banks, which were established by Congress as the operating arms of the nation's central banking system, are organized much like 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. •Source: http://www.federalreserve.gov/generalinfo/faq/faqfrs.htm The Federal Reserve According to Mullins the larges 8 banks who own Federal Reserve Stock are: Citibank, Chase Manhattan, Morgan Guaranty Trust, Chemical Bank, Manufacturers Hanover Trust, Bankers Trust Company, National Bank of North America, and the Bank of New York His claim is that many of these banks have large ownership from foreign countries, many Europe, large portion in British Columbia. He also claims that the New York Reserve Bank has foreign interest and it is the New York Reserve Bank that controls the Federal Reserve Can we conform what Mullins said? Source Mullins, Eustace. 1983. Secrets of the Federal Reserve. Staunton, Va.: Bankers Research Institute. The Federal Reserve New York Federal Reserve Bank is only 1 of 12 Federal Reserve Banks Federal Reserve not actually controlled by New York Fed, but controlled by the Board of Governors (the Board) and the Federal Open Market Committee (FOMC) There is a claim that foreigners own portion of the stock of the Federal Reserve There is a law that allows a limited amount of stock to be sold to the public. No more than $25,000 is allowed to be sold to any person or organization The Federal Reserve Public stock is only to be sold if member banks do not raise a minimum of $4 million of initial capital for each reserve bank. This has never happened!! Stock has only been sold to banks who are a member of the Federal Reserve System. Claim: Since those 8 banks own the largest share of the New York Federal Reserve, they control the Federal Reserve. The New York Federal Reserve Bank has 1000 members. Votes are not based on percentage of shares. SEC requires that if any organization owns more than 5% of shares of a publicly traded firm to made public Because of this, it is evedint that no foreign organization owns more than 5%. Who Gets the Federal Reserve Profits? In 1995, Federal Reserve had net income of $23.9 billion. $23.4 billion was transferred to Treasury. (97.9%) Federal Reserve banks kept $283 million. Remaining $231million was paid to stockholders as dividends. Reference: http://www.usagold.com/federalreserve.html Gold vs. Silver August 8, 1786 – The dollar approved as an approved monetary system Coinage Act of 1792 – established the dollar as the basic unit of account for the United States. Discovery of large silver deposits in late 19th century brought the value of silver down. Conflict in Congress as to whether they should switch from Silver to Gold Standard ○ Benefit to keeping silver standard, farmers could pay off debt quickly ○ Benefit to switching to gold standard, align with European markets better. Nixon Shock The gold standard was officially adopted through a series of legislations from 1873 to 1900. 1971 Dollar was removed from the gold standard. 1972 US dollar was reset the gold value of 38 dollars per troy ounce Silver Standard Silver certificates were printed representing money from 1878 to 1964. Since early 20s they were available in $1, $5, and $10 notes. Money Statistics Average debt for 22-29 Year old: $16,120. Average debt per household rages $8,000 to $14,000 84% of students have a credit Card On Average Consumers have 13 credit obligations Plan for the Future There is never a good time to start planning for your financial future. DO IT NOW!!! Managing money is essential Managing money is part of building a foundation for your future Spending Money 1. Keep track of everything you spend 2. Subtract Total from monthly income If you get a negative number, you need to make some changes Need or Want? Wants vs. Can I afford? Putting things into perspective Average Price for Coffee $1.50 3 cups per day = $4.50/per day = $1642.50/year Breakfast = $5, Lunch = $8, Dinner =$10 Eating = $23/day, $690/month $8395 Food and coffee = $10,037.50 We spend $400/month for family of 4. This includes diapers, eating out regularly and convenient foods. Budget Guidelines 20% for debt payments 30% for rent 10% for savings Looking for a Bank Look for charges and fees Interest rates and cash back Ability to having low balance on checking account without extra fees. Checks, Credit Cards, Debt Cards Etc ATM Access (don’t use ATM more then once per week) Check into option of Credit Union General Suggestions Direct Deposit Auto deduct/online bill pay You have to know where your priorities are Priorities lead to prosperity. Digging our of debt Credit Cards are dangerous One college student spent $4000, ended up with $30,000 debt from fees 66% of college students have credit cards If debt is necessary for school, look into student loans Credit Card Smarts Lowest Interest Rate (look past introductory rate) No Annual Fees No Hidden Fees or Charges READ THE FINE PRINT New credit card tricks Student Loans and Tuition Subsidized – Government pay interest Unsubsidized – interest accrues Pell grand and other grants available Average tuition for 4 year school: $25,000 Average student loan payment: $252 Average total interest paid: $8,343 Student Loan Payment Options Deferment: Time period in which payments are not required Forbearance: Temporarily stop loan payments because of financial hardships Income Sensitive Payments Average Student Loan Debt 1990: $6800 2007: $22,000 2015: $32,000 Credit Score Most important grade you will see Credit Report: Your credit relation history Make Payments on time Pay bill in full each month Check credit report annually https://www.annualcreditreport.com/cra/inde x.jsp Three Credit Bureaus. ○ Experian, TransUnion, Equifax Ways to Save CD’s Good rates Jan 2009 ○ 6 months : 3.24% ○ 1 Year: 3.7% ○ 5 Year: 4.24% Recommended Emergency Fund: 3-6 months living expense Money Market Account Saving for Retirement IRA vs. Roth IRA IRA ○ Tax Deferred (pay taxes when you take it out) Roth IRA ○ Pay taxes first, then growth is tax free 401k Same concept as IRA, but employer sponsored Employer Matched Compound Interest 5% Interest Rate $50 Per Month 30 Years: $41,856 20 Years: $20,831 10 Years: $7,924 $100 per Month 30 Years: $83,712 20 Years: $41,663 10 Years: $15,848 $200 per Month 30 Years: $167,425 20 Years: $83,326 10 Years: $31,696 Compound Interest 5% Interest Rate 10 % Interest Rate $50 Per Month •$50 Per Month 30 Years: $41,856 •30 Years: 108,566 20 Years: $20,831 •20 Years: $37,801 10 Years: $7,924 •10 Years: $10,518 $100 per Month •$100 per Month 30 Years: $83,712 •30 Years: $217,132 20 Years: $41,663 •20 Years: $75,603 10 Years: $15,848 •10 Years: $21,037 $200 per Month •$200 per Month 30 Years: •30 Years: $434,264 $167,425 •20 Years: $151,206 20 Years: $83,326 •10 Years: $42,074 10 Years: $31,696 Getting Insured Health Insurance Average uninsured hospital visit $3300 1 in 3 adults don’t have it (20 million people have no health insurance) Life Insurance Renters Insurance Self Employment Taxes (set aside 30%) Cost of Operation Careful records for IRS Penalties for not paying taxes as you go Health insurance and other costs Set aside 15% for health insurance & business insurance Set aside 10% for retirement Great Website of Reference http://www.pbs.org/wned/
"The Federal Reserve"