[spqrr]

As far as I understand the federal reserve is not technically part of the government but a private institution. It has shareholders not unlike a public company and those shareholders are the big banks like JPM. I'm not sure if those are the same as the so called primary dealers or if there is just an overlap. You are correct that the actual printing of physical cash is done by the government on behalf of the fed, I think by the treasury.

[pdonis]

> As far as I understand the federal reserve is not technically part of the government but a private institution.

It's established by Federal law; its Chairman is appointed by the President. It walks like a duck and quacks like a duck; it's a duck.

[throw0101d]

> It's established by Federal law; its Chairman is appointed by the President.

It's amusing that you think that the Fed is an instrument of the government, but other conspiracy theorists think it is an instrument of private banks:

> Griffin then turns his attention to the secret meeting that took place on Jekyll Island in 1910. He reveals how a small group of powerful bankers, including representatives from J.P. Morgan, Rockefeller, and other influential figures, devised a plan to create a central banking system that would serve their own interests. They realized that they needed to present the Federal Reserve as a government entity to gain public support, despite the fact that it was, in essence, a private institution.

* https://medium.com/@casuallifellc/the-creature-from-jekyll-i...

* https://en.wikipedia.org/wiki/G._Edward_Griffin

[pdonis]

> other conspiracy theorists

The Federal Reserve Act of 1913 is not a "conspiracy theory", it's a fact. The events leading up to it are not a matter of serious dispute as far as I know. Of course the government and the Fed will give you a very different interpretation of those events, but their interpretation doesn't stand up to actual scrutiny.

> it is an instrument of private banks

It is both; it is part of the government (for the reasons I have already given), and it transfers wealth to private banks and financial institutions from everyone else by printing money. The private banks were tired of the government coming to them for a bailout every time there was a financial panic (the Panic of 1907 being the most recent one at the time), so they convinced Congress that creating a central bank would stop the panics. (It didn't, of course, but they convinced Congress that it would.) With the Federal Reserve in place, banks and financial institutions, as I've said, got wealth transferred to them whenever the Fed printed money, and also the burden of recovery from financial panics was transferred from the banks to the taxpayers (a recent example of course being the bailouts of 2008).