The 12 Most Infamous Economic Conspiracy Theories

The digital rag Business Insider (run by Henry Blodget, the unabashed Wall Street Internet booster) goes for more SEO-friendly conspiracy bashing:

The economy has sparked a wide variety of truly bizarre conspiracy theories. Despite the fact that they have no basis in truth, people continue to believe them with almost religious zeal.

The internet has given them a wider forum and audience, and has proved to be fertile ground for these ideas to spread.

These are the myths, conspiracy theories, and flat out falsehoods that just won’t die.

The Federal Reserve is a private corporation run for the profit of its shareholder banks.

Origin: This one’s been kicking around almost since the creation of the Federal Reserve in 1913. It’s the subject of a three hour documentary called “The Money Masters”.
The reality: Nationally chartered banks do hold stock in their regional Federal Reserve Banks, and receive a small portion (6 percent of their stock) of the profits of their regional banks, which is presumably the origin of this theory.

  • That stock confers no control over the Regional bank’s activities.
  • Last year $1.6 billion in profit went to member banks. The remaining $46 billion was remanded to the Treasury department.

Further, monetary policy is conducted by two entirely different branches of the Federal Reserve System. The Board Of Governors oversees the Regional banks and monetary policy, and is made up of 7 members nominated by the President and confirmed by the Senate. They conduct monetary policy in the interest of the public by their Congressional mandate.

The closest influence the private shareholders have on the conduct of monetary policy is through their nomination of 6 of the 9 members of regional bank boards. Those boards nominate bank presidents, who must be confirmed by the Board of Governors. 5 regional presidents serve on the Federal Reserve Open Market Committee, which oversees the principal tool of monetary policy, in service of the Federal Reserve’s Congressional mandate, not regional shareholders…

[continues at Business Insider]

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  • kowalityjesus

    I am not convinced.  This article claims that the US actually went to war in Iraq to find Weapons of Mass Destruction.  This is low-level disinformation, and I am disappointed to see it posted alongside so many other meritorious posts and links.

  • http://buzzcoastin.posterous.com BuzzCoastin

    the US economic conspiracy is actually a confederation of dunces
    but
    this article is quite simply as disinfo as one can get
    written by a group of wall street insiders
    to explain that it’s stupid to think bamksters are conspiring to steal money

  • Mike Henry

    The natural state of our economy is prosperity. The only force capable

    of undermining our economy is a government that believes it has the

    right to micro-manage and manipulate it.

    Thanks,
    Economic Warfare

  • sam23sirius

    C’mon. We all know the Federal Reserve is like Grape nuts. Not federal, no reserve, no grapes, no nuts.

  • howiebledsoe

    Bankers, consipring to steal my money??? Ha! I’ll believe that when I see it.  OK, off the the opticians.

  • paprtowl

    thomas jefferson :” a central bank is”

  • maxde

    Why was this posted here? I was happy to read it cause i am very suspicious of Banks and the Financial industry, and wanted to have my mind put at ease. Very disappointed :( They even appealed to anti semitism!

    • http://twitter.com/mopsydizzle mopsyd

      Apparently questioning a financial institution is antisemitic. Isn’t it antisemitic to assume that all banking operations are done by jews? Or does that stereotype only work when you are criticizing an institution instead of defending it?

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