1994-05-02 - The American money capture

Header Data

From: hughes@ah.com (Eric Hughes)
To: cypherpunks@toad.com
Message Hash: 7fdc274dc5c215081a94fd6e29966354d3214815d53ab3bbe8e835c0e90d1df1
Message ID: <9405022049.AA27273@ah.com>
Reply To: <9405021903.AA26802@snark.imsi.com>
UTC Datetime: 1994-05-02 20:52:18 UTC
Raw Date: Mon, 2 May 94 13:52:18 PDT

Raw message

From: hughes@ah.com (Eric Hughes)
Date: Mon, 2 May 94 13:52:18 PDT
To: cypherpunks@toad.com
Subject: The American money capture
In-Reply-To: <9405021903.AA26802@snark.imsi.com>
Message-ID: <9405022049.AA27273@ah.com>
MIME-Version: 1.0
Content-Type: text/plain

>The Fed is pretty easy to understand. Although its set up to be
>quasi-independant, it more or less the government body that regulates
>the banking industry and controls the money supply.

I have the opportunity of a group meeting with some of the SF Fed
operations staff a couple of weeks ago.  Their words:

	"The Fed is in the government but not of the government"

Other tidbits:

-- The new Fed funds transfer system will continue to use DES, and
will not be using Clipper.

-- The Fed wants to get rid of paper checks.  The check subsidy from
the float is enormous.  The purpose of the Expedited Funds Transfer
Act (mandated two day clearing of checks over $2500, among other
things) was to start squeezing the float out of the checking system.