Gyroscopic Investing

Anyone else think it's weird that a non-government entity would be able to register a .gov url?  Additionally, it seems a bit misleading to call it a "Board of Governors" when for all intents and purposes they are a "Board of Directors."  Admittedly I don't have any cool conspiracy theories to share, just an observation.  Although I am pretty certain it's a deliberate decision to muddy the waters a bit.

Wonk,

What is your definition of governmental entity?

MediumTex wrote: Wonk,

What is your definition of governmental entity?

1. Audited by the GAO

2. Accountable to citizens of the United States.

They are government when they want to be and non-government when they want to be. Just depends on what policy goals they want or public heat they are looking to avoid.

An historian on the Fed described it as a 100% political animal in an interview (search econtalk). I agree. They are what they need to be when it suits them but ultimately they will do what they are told by those in power.

Even a super-secret black-ops sector of the CIA that's known about by almost nobody is a governmental entity in my book.  If the president nominates the chairman, and the entity can purchase treasuries and other assets with nonexistent money, it's definitely not a unit of the private sector.

I think the Fed has all the attributes of a governmental entity.

1. It is inefficient

2. It seeks to consolidate its power and maintain the monopoly in the areas in which it operates (i.e., price fixing of interest rates)

3. It is not subject to the oversight of an enforcement or rulemaking agency.

4. It is not constrained by costs or the need to show a profit.

5. If you choose not to do business with it (e.g. if you decided to try out another monetary system of your own creation), the coercive power of the state can be used against you.

In what ways is it NOT like a governmental entity?

It's officially considered to be, "independent within the government." 

http://www.federalreserve.gov/generalin ... qfrs.htm#5