***]The question I was trying to clarify is, Who has the major control over the increase in the money supply -- the private banking sector or the government through its monetary policy? It seems to me that the government here has the major say, but who knows how much the financiers with the ´will to power´ can influence actions of men in government and in the Directorates? [***
The answer is the private banking sector. The government has no say whatsoever. They don't hide it. See http://www.reservebank.co.za/ "Since its establishment, the Bank has always been privately owned and today has some 650 shareholders." "The Bank has a Board of fourteen directors. Among them are the governor and three deputy governors, who are appointed by the Government for five-year terms. Three other directors are appointed by the Government for a period of three years. The remaining seven directors, of whom one represents agriculture, two industry and four commerce or finance, are elected by shareholders for a period of three years." Yes, it would appear theoretically that government appoints half the directors so that in principle government could take control of the bank's policy by amending the bank's charter so that it could appoint the majority of directors. But then it would come down to whether the government appoints directors from the banking industry, who are indoctrinated with the anti-inflation ideology of banking, or otherwise, or so it seems to me. "When the Government's expenditure exceeds its income from various sources such as taxation, its deficit before borrowing must be funded. This funding is obtained by selling Government bonds to domestic institutions such as pension funds." "Through its activities in these markets known as open market operations, the Reserve Bank can exert either upward or downward pressure on the general level of interest rates." Note that the Reserve Bank does not directly fund government spending. Through 'open market' operations it attempts to control interest rates in order to achieve economic stability--not "full employment," a rising standard of living, the funding of government infrastructure projects, or anything else. "The Bank is active in the domestic money and capital markets. Its activities are aimed at influencing the availability of money in the economy to achieve the monetary policy goal of low inflation." etc. Particularly, in South Africa, the government has no say. Since 1994 the Reserve Bank has become one of the most conservative central banks in the world in terms of stated policy: "South Africa's approach to overall economic management changed significantly when the new government assumed office in 1994 and embarked upon a concerted effort to achieve macroeconomic stability. In the past there had been many attempts to achieve sustained growth and higher levels of employment by stimulating demand in the economy through expansionary monetary and fiscal policies..." I see no significant structural differences between the United States Federal Reserve and the South African Reserve Bank. ____________________________________________________________ University of Phoenix Online. Free Information - Online Classes http://r.hotbot.com/r/lmt_uopo/http://servedby.advertising.com/click/site=563632/mnum=125825 This offer applies to U.S. Residents Only --^---------------------------------------------------------------- This email was sent to: [EMAIL PROTECTED] EASY UNSUBSCRIBE click here: http://topica.com/u/?a84IaC.bcVIgP.YXJjaGl2 Or send an email to: [EMAIL PROTECTED] TOPICA - Start your own email discussion group. FREE! http://www.topica.com/partner/tag02/create/index2.html --^----------------------------------------------------------------
