What is the Federal Reserve Bank (FED) and why do we have it?

Also see Federal Reserve 2  and    Federal Reserve 3  and Federal Reserve 4

by Greg Hobbs
An eye opening view of how the money really works in America today.

The FED is a central bank. Central banks are supposed to implement a country's fiscal policies. They monitor commercial banks to ensure that they maintain sufficient assets, like cash, so as to remain solvent and stable. Central banks also do business, such as currency exchanges and gold transactions, with other central banks.

In theory, a central bank should be good for a country, and they might be if it wasn't for the fact that they are not owned or controlled by the government of the country they are serving. Private central banks, including our FED, operate not in the interest of the public good but for profit.

There have been three central banks in our nation's history. The first two, while deceptive and fraudulent, pale in comparison to the scope and size of the fraud being perpetrated by our current FED. What they all have in common is an insidious practice known as "fractional banking."

Fractional banking or fractional lending is the ability to create money from nothing, lend it to the government or someone else and charge interest to boot. The practice evolved before banks existed.

Goldsmiths rented out space in their vaults to individuals and merchants for storage of their gold or silver. The goldsmiths gave these "depositors" a certificate that showed the amount of gold stored. These certificates were then used to conduct business.

In time the goldsmiths noticed that the gold in their vaults was rarely withdrawn. Small amounts would move in and out but the large majority never moved. Sensing a profit opportunity, the goldsmiths issued double receipts for the gold, in effect creating money (certificates) from nothing and then lending those certificates (creating debt) to depositors and charging them interest as well.

Since the certificates represented more gold than actually existed, the certificates were "fractionally" backed by gold. Eventually some of these vault operations were transformed into banks and the practice of fractional banking continued.

Keep that fractional banking concept in mind as we examine our first central bank, the First Bank of the United States (BUS). It was created, after bitter dissent in the Congress, in 1791 and chartered for 20 years. A scam not unlike the current FED, the BUS used its control of the currency to defraud the public and establish a legal form of usury.

This bank practiced fractional lending at a 10:1 rate, ten dollars of loans for each dollar they had on deposit. This misuse and abuse of their public charter continued for the entire 20 years of their existence. Public outrage over these abuses was such that the charter was not renewed and the bank ceased to exist in 1811.

The war of 1812 left the country in economic chaos, seen by bankers as another opportunity for easy profits. They influenced Congress to charter the second central bank, the Second Bank of the United States (SBUS), in 1816. The SBUS was more expansive than the BUS. The SBUS sold franchises and literally doubled the number of banks in a short period of time.

The country began to boom and move westward, which required money. Using fractional lending at the 10:1 rate, the central bank and their franchisees created the debt/money for the expansion. Things boomed for a while, then the banks decided to shut off the debt/money, citing the need to control inflation. This action on the part of the SBUS caused bankruptcies and foreclosures. The banks then took control of the assets that were used as security against the loans.

Closely examine how the SBUS engineered this cycle of prosperity and depression. The central bank caused inflation by creating debt/money for loans and credit and making these funds readily available. The economy boomed. Then they used the inflation which they created as an excuse to shut off the loans/credit/money.

The resulting shortage of cash caused the economy to falter or slow dramatically and large numbers of business and personal bankruptcies resulted. The central bank then seized the assets used as security for the loans. The wealth created by the borrowers during the boom was then transferred to the central bank during the bust. And you always wondered how the big guys ended up with all the marbles.

Now, who do you think is responsible for all of the ups and downs in our economy over the last 85 years? Think about the depression of the late '20s and all through the '30s. The FED could have pumped lots of debt/money into the market to stimulate the economy and get the country back on track, but did they? No; in fact, they restricted the money supply quite severely. We all know the results that occurred from that action, don't we?

Why would the FED do this? During that period asset values and stocks were at rock bottom prices. Who do you think was buying everything at 10 cents on the dollar? I believe that it is referred to as consolidating the wealth. How many times have they already done this in the last 85 years?

Do you think they will do it again? Just as an aside at this point, look at today's economy. Things are booming. Why? Because the FED has been very liberal with its debt/credit/money. The market is hyper inflated. Who creates inflation? The FED. How does the FED deal with inflation? They restrict the debt/credit/money. What happens when they do that? The market collapses.

Several months back, after certain central banks said they would be selling large quantities of gold, the price of gold fell to a 25-year low of about $260 per ounce. The central banks then bought gold. After buying at the bottom, a group of 15 central banks announced that they would be restricting the amount of gold released into the market for the next five years. The price of gold went up $75.00 per ounce in just a few days. How many hundreds of billions of dollars did the central banks make with those two press releases?

Gold is generally considered to be a hedge against more severe economic conditions. Do you think that the private banking families that own the FED are buying or selling equities at this time? (Remember: buy low, sell high.) How much more money do you think these FED owners will make when they restrict the money supply at the top of this current cycle?

Alan Greenspan has said publicly on several occasions that he thinks the market is overvalued, or words to that effect. Just a hint that he will raise interest rates (restrict the money supply), and equitymarkets have a negative reaction. Governments and politicians do not rule central banks, central banks rule governments and politicians.

President Andrew Jackson won the presidency in 1828 with the promise to end the national debt and eliminate the SBUS. During his second term President Jackson withdrew all government funds from the bank and on January 8, 1835, paid off the national debt. He is the only president in history to have this distinction. The charter of the SBUS expired in 1836.

Without a central bank to manipulate the supply of money, the United States experienced unprecedented growth for 60 or 70 years, and the resulting wealth was too much for bankers to endure. They had to get back into the game. So, in 1910 Senator Nelson Aldrich, then Chairman of the National Monetary Commission, in collusion with representatives of the European central banks, devised a plan to pressure and deceive Congress into enacting legislation that would covertly establish a private central bank.

This bank would assume control over the American economy by controlling the issuance of its money. After a huge public relations campaign, engineered by the foreign central banks, the Federal Reserve Act of 1913 was slipped through Congress during the Christmas recess, with many members of the Congress absent. President Woodrow Wilson, pressured by his political and financial backers, signed it on December 23, 1913.

The act created the Federal Reserve System, a name carefully selected and designed to deceive. "Federal" would lead one to believe that this is a government organization. "Reserve" would lead one to believe that the currency is being backed by gold and silver. "System" was used in lieu of the word "bank" so that one would not conclude that a new central bank had been created.

In reality, the act created a private, for profit, central banking corporation owned by a cartel of private banks. Who owns the FED? The Rothschilds of London and Berlin; Lazard Brothers of Paris; Israel Moses Seif of Italy; Kuhn, Loeb and Warburg of Germany; and theLehman Brothers, Goldman, Sachs and the Rockefeller families of New York.

Did you know that the FED is the only for-profit corporation in America that is exempt from both federal and state taxes? The FED takes in about one trillion dollars per year tax free! The banking families listed above get all that money.

Almost everyone thinks that the money they pay in taxes goes to the US Treasury to pay for the expenses of the government. Do you want to know where your tax dollars really go? If you look at the back of any check made payable to the IRS you will see that it has been endorsed as "Pay Any F.R.B. Branch or Gen. Depository for Credit U.S. Treas.

This is in Payment of U.S. Oblig." Yes, that's right, every dime you pay in income taxes is given to those private banking families, commonly known as the FED, tax free.

Like many of you, I had some difficulty with the concept of creating money from nothing. You may have heard the term "monetizing the debt," which is kind of the same thing. As an example, if the US Government wants to borrow $1 million ó the government does borrow every dollar it spends ó they go to the FED to borrow the money. The FED calls the Treasury and says print 10,000 Federal Reserve Notes (FRN) in units of one hundred dollars. The Treasury charges the FED 2.3 cents for each note, for a total of $230 for the 10,000 FRNs. The FED then lends the $1 million to the government at face value plus interest.

To add insult to injury, the government has to create a bond for $1 million as security for the loan. And the rich get richer. The above was just an example, because in reality the FED does not even print the money; it's just a computer entry in their accounting system.

To put this on a more personal level, let's use another example. Today's banks are members of the Federal Reserve Banking System. This membership makes it legal for them to create money from nothing and lend it to you. Today's banks, like the goldsmiths of old, realize that only a small fraction of the money deposited in their banks is ever actually withdrawn in the form of cash. Only about 4 percent of all the money that exists is in the form of currency. The rest of it is simply a computer entry.

Let's say you're approved to borrow $10,000 to do some home improvements. You know that the bank didn't actually take $10,000 from its pile of cash and put it into your pile? They simply went to their computer and input an entry of $10,000 into your account. They created, from thin air, a debt which you have to secure with an asset and repay with interest. The bank is allowed to create and lend as much debt as they want as long as they do not exceed the 10:1 ratio imposed by the FED.

It sort of puts a new slant on how you view your friendly bank, doesn't it? How about those loan committees that scrutinize you with a microscope before approving the loan they created from thin air. What a hoot! They make it complex for a reason. They don't want you to understand what they are doing. People fear what they do not understand. You are easier to delude and control when you are ignorant and afraid.

Now to put the frosting on this cake. When was the income tax created? If you guessed 1913, the same year that the FED was created, you get a gold star. Coincidence? What are the odds? If you are going to use the FED to create debt, who is going to repay that debt? The income tax was created to complete the illusion that real money had been lent and therefore real money had to be repaid. And you thought Houdini was good.

So, what can be done? My father taught me that you should always stand up for what is right, even if you have to stand up alone. If "We the People" don't take some action now, there may come a time when "We the People" are no more. You should write a letter or send an email to each of your elected representatives. Many of our elected representatives do not understand the FED. Once informed they will not be able to plead ignorance and remain silent.

Article 1, Section 8 of the US Constitution specifically says that Congress is the only body that can "coin money and regulate the value thereof." The US Constitution has never been amended to allow anyone other than Congress to coin and regulate currency.

Ask your representative, in light of that information, how it is possible for the Federal Reserve Act of 1913, and the Federal Reserve Bank that it created, to be constitutional. Ask them why this private banking cartel is allowed to reap trillions of dollars in profits without paying taxes. Insist on an answer.

Thomas Jefferson said, "If the America people ever allow private banks to control the issuance of their currencies, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their prosperity until their children will wake up homeless on the continent their fathers conquered."

Jefferson saw it coming 150 years ago. The question is, "Can you now see what is in store for us if we allow the FED to continue controlling our country?"

For a further in depth look at this problem read a copy of "The Return to Jekyll Island".

Also see Federal Reserve 2

http://www.worldnewsstand.net/today/articles/fedprivatelyowned.htm 

The Federal Reserve is PRIVATELY OWNED

by Thomas D. Schauf (c 1992)

Dear American:

Pursuant to your request, I will attempt to clear up questions you have

about the Federal Reserve Bank (FED). I spent much time researching

the FED and these are the shocking and revealing conclusions.

THE FEDERAL RESERVE BANK IS A PRIVATE COMPANY.

Article 1, Section 8 of the Constitution states that Congress shall have

the power to coin (create) money and regulate the value thereof.

Today however, the FED, which is a privately owned company,

controls and profits by printing money through the Treasury, and

regulating its value.

The FED began with approximately 300 people or banks that became

owners (stockholders purchasing stock at $100 per share - the stock is

not publicly traded) in the Federal Reserve Banking System. They

make up an international banking cartel of wealth beyond comparison

(Reference 1, 14). The FED banking system collects billions of dollars

(Reference 8, 17) in interest annually and distributes the profits to its

shareholders. The Congress illegally gave the FED the right to print

money (through the Treasury) at no interest to the FED. The FED

creates money from nothing, and loans it back to us through banks,

and charges interest on our currency. The FED also buys Government

debt with money printed on a printing press and charges U.S.

taxpayers interest. Many Congressmen and Presidents say this is

fraud (Reference 1,2,3,5,17).

Who actually owns the Federal Reserve Central Banks? The

ownership of the 12 Central banks, a very well kept secret, has been

revealed:

Rothschild Bank of London

Warburg Bank of Hamburg

Rothschild Bank of Berlin

Lehman Brothers of New York

Lazard Brothers of Paris

Kuhn Loeb Bank of New York

Israel Moses Seif Banks of Italy

Goldman, Sachs of New York

Warburg Bank of Amsterdam

Chase Manhattan Bank of New York

(Reference 14, P. 13, Reference 12, P. 152)

These bankers are connected to London Banking Houses which

ultimately control the FED. When England lost the Revolutionary War

with America (our forefathers were fighting their own government),

they planned to control us by controlling our banking system, the

printing of our money, and our debt (Reference 4, 22).

The individuals listed below owned banks which in turn owned shares

in the FED. The banks listed below have significant control over the

New York FED District, which controls the other 11 FED Districts.

These banks also are partly foreign owned and control the New York

FED District Bank. (Reference 22)

First National Bank of New York

James Stillman National City Bank, New York

Mary W. Harnman

National Bank of Commerce, New York

A.D. Jiullard

Hanover National Bank, New York

Jacob Schiff

Chase National Bank, New York

Thomas F. Ryan

Paul Warburg

William Rockefeller

Levi P. Morton

M.T. Pyne

George F. Baker

Percy Pyne

Mrs. G.F. St. George

J.W. Sterling

Katherine St. George

H.P. Davidson

J.P. Morgan (Equitable Life/Mutual Life)

Edith Brevour T. Baker

(Reference 4 for above, Reference 22 has details, P. 92, 93, 96, 179)

How did it happen? After previous attempts to push the Federal

Reserve Act through Congress, a group of bankers funded and staffed

Woodrow Wilson's campaign for President. He had committed to sign

this act. In 1913, a Senator, Nelson Aldrich, maternal grandfather to

the Rockefellers, pushed the Federal Reserve Act through Congress

just before Christmas when much of Congress was on vacation

(Reference 3, 4, 5). When elected, Wilson passed the FED. Later,

Wilson remorsefully replied (referring to the FED), "I have

unwittingly ruined my country" (Reference 17, P. 31).

Now the banks financially back sympathetic candidates. Not

surprisingly, most of these candidates are elected (Reference 1, P.

208-210, Reference 12, P. 235, Reference 14, P. 36). The bankers

employ members of the Congress on weekends (nickname T&T club -

out Thursday...-in Tuesday) with lucrative salaries (Reference 1, P.

209). Additionally, the FED started buying up the media in the 1930's

and now owns or significantly influences most of it Reference 3, 10,

11, P. 145).

Presidents Lincoln, Jackson, and Kennedy tried to stop this family of

bankers by printing U.S. dollars without charging the taxpayers interest

(Reference 4). Today, if the government runs a deficit, the FED prints

dollars through the U.S. Treasury, buys the debt, and the dollars are

circulated into the economy. In 1992, taxpayers paid the FED banking

system $286 billion in interest on debt the FED purchased by printing

money virtually cost free (Reference 12, P. 265). Forty percent of our

personal federal income taxes goes to pay this interest. The FED's

books are not open to the public. Congress has yet to audit it.

Congressman Wright Patman was Chairman of the House of

Representatives Committee on Banking and Currency for 40 years.

For 20 of those years, he introduced legislation to repeal the Federal

Reserve Banking Act of 1913.

 

Congressman Henry Gonzales, Chairman of a banking committee,

introduces legislation to repeal the Federal Reserve Banking Act of

1913 nearly every year. It's always defeated, the media remains silent,

and the public never learns the truth. The same bankers who own the

FED control the media and give huge political contributions to

sympathetic members of Congress (Reference 12, P. 155-163,

Reference 22, P. 158, 159, 166).

THE FED FEARS THE POPULATION WILL BECOME AWARE OF

THIS FRAUD AND DEMAND CHANGE

Rep. Louis T. McFadden (R. Pa.) rose from office boy to become

cashier and then President of the First National Bank in Canton Ohio.

For 12 years he served as Chairman of the Committee on Banking and

Currency, making him one of the foremost financial authorities in

America. He fought continuously for fiscal integrity and a return to

constitutional government (Reference 1). The following are portions of

Rep. McFadden's speech, quoted from the Congressional Record,

pages 12595-12603:

"THE FEDERAL RESERVE BOARD, A GOVERNMENT BOARD, HAS

CHEATED THE GOVERNMENT OF THE UNITED STATES AND THE

PEOPLE OF THE UNITED STATES OUT OF ENOUGH MONEY TO

PAY THE NATIONAL DEBT.

The depredations and the iniquities of the Federal Reserve Board and

the Federal Reserve banks acting together have cost this country

ENOUGH MONEY TO PAY THE NATIONAL DEBT SEVERAL TIMES

OVER."

About the Federal Reserve banks, Rep. McFadden said, "They are

private credit monopolies which prey upon the people of the United

States for the benefit of themselves and their foreign customers;

foreign and domestic speculators and swindlers; the rich and predatory

money lenders. This is an era of economic misery and for the reasons

that caused that misery, the Federal Reserve Board and the Federal

Reserve banks are fully liable."

On the subject of media control he state, "Half a million dollars was

spent on one part of the propaganda organized by those same

European bankers for the purpose of misleading public opinion in

regard to it."

Rep. McFadden continued, "Every effort has been made by the

Federal Reserve Board to conceal its power but the truth is the Federal

Reserve Board has USURPED THE GOVERNMENT OF THE

UNITED STATES. IT CONTROLS EVERYTHING HERE AND IT

CONTROLS ALL OUR FOREIGN RELATIONS. IT MAKES AND

BREAKS GOVERNMENTS AT WILL.

No man and no body of men is more entrenched in power than the

arrogant credit monopoly which operates the Federal Reserve Board

and the Federal Reserve banks. These evil-doers have robbed this

country of more than enough money to pay the national debt. What the

Government has permitted the Federal Reserve Board to steal from

the people should now be restored to the people."

"Our people's money to the extent of $1,200,000,000 has within the

last few months been shipped abroad to redeem Federal Reserve

Notes and to pay other gambling debts of the traitorous Federal

Reserve Board and the Federal Reserve banks. The greater part of

our monetary stock has been shipped to foreigners. Why should we

promise to pay the debts of foreigners to foreigners? Why should

American Farmers and wage earners add millions of foreigners to the

number of their dependents? Why should the Federal Reserve Board

and the Federal Reserve banks be permitted to finance our

competitors in all parts of the world?" Rep. McFadden asked.

"The Federal Reserve Act should be repealed and the Federal

Reserve banks, having violated their charters, should be liquidated

immediately.

FAITHLESS GOVERNMENT OFFICERS WHO HAVE VIOLATED

THEIR OATHS SHOULD BE IMPEACHED AND BROUGHT TO

TRIAL", Rep. McFadden concluded (Reference 1, contains an entire

chapter on Rep. McFadden's speech).

If the media is unbiased, independent and completely thorough, why

haven't they discussed the FED? Currently, half the states have at

least a grass roots movement in action to abolish the FED, but there's

no press coverage. In July, 1968, the House Banking Subcommittee

reported that Rockefeller, through Chase Manhattan Bank, controlled

5.9% of the stock in CBS. Furthermore, the bank had gained

interlocking directorates with ABC.

In 1974, Congress issued a report stating that the Chase Manhattan

Bank's stake in CBS rose to 14.1% and NBC to 4.5% (through RCA,

the parent company of NBC). The same report said that the Chase

Manhattan Bank held stock in 28 broadcasting firms. After this report,

the Chase Manhattan Bank obtained 6.7% of ABC, and today the

percentage could be much greater. It only requires 5% ownership to

significantly influence the media (Reference 14, P. 56-57). This is only

one of 300 wealthy shareholders of the FED. It is believed other FED

owners have similar holdings in the media. To control the media, FED

bankers call in their loans if the media disagrees with them

(Reference 25, P. 134-137).

Rockefeller also controls the Council on Foreign Relations (CFR), the

sole purpose of which is to aid in stimulating greater interest in foreign

affairs and in a one world government. Nearly every major newscaster

belongs to the Council on Foreign Relations. The Council on Foreign

Relations controls many major newspapers and magazines.

Additionally, major corporations owned by FED shareholders are the

source of huge advertising revenues which surely would influence the

media (Reference 14, P. 56-59). It can be no wonder why groups such

as FED-UP(tm) receive minimal, if any,

press attention. .

AMERICA DECEIVED

. In other words, by Congress allowing the constitutionally illegal FED

to continue, much of your taxes go to the shareholders of the FED and

their bankers. Note: The people who enacted the FED started the IRS,

within months of the FED's inception. The FED buys U.S. debt with

money they printed from nothing, then charges the U.S. taxpayers

interest. The government had to create income tax to pay the interest

expense to the FED's shareholders, but the income tax was never

legally passed (Reference 20 shows details, state-by-state why it was

not legally passed). The FED is illegal, per Article 1, Section 8 of the

United States Constitution. Not one state legally ratified the 16th

Amendment making income tax legal.

 

Why has Congress allowed the FED to continue? If a Congressperson

tries to abolish the FED, the banks fund the Congressperson's

opponent in the next election (Reference 17, P. 35). The new

Congressperson will obviously support the FED. When

Congresspeople retire, political campaign funds are not taxed. Get

elected and be a millionaire if you vote right. By the way,

the profit of the FED is not taxed either (Reference 1, 9). .

Consider this fact. Most of the given sources in this booklet show how

the blood line of family bankers who own the FED funded both sides of

all major wars. They created fake colonial money to destroy the

Americans during the Revolutionary War and tried to finance both

sides in the American Civil War. Abraham Lincoln refused and the

South accepted. Many publications show that these bankers financed

World War I, World War II, and the Russian Revolutionary War, which

helped Napoleon, Lenin, and Hitler come to power. They financed both

sides from money created from nothing and profited greatly. These

same bankers created a number of American depressions to change

the U.S. legislation and seize our wealth. Read the sources for

details. This is why our forefathers wrote in the Constitution that only

Congress can issue money - not private banks (Reference 18).

More wars create more debt which means more profit to the bankers

(Reference 1, 21). These bankers planned three world wars so people

would welcome United Nations intervention to govern the world in

peace, not war. (Reference 22 gives specific details on World War I

and World War II, showing exactly how the bankers were responsible

for the beginning and continuation of these wars for their profit).

The banks have publicly announced they will force us to a cashless

society by 1997. Furthermore, they plan to create a one world

government through the United Nations headed by the FED,

Trilaterals, and the Council on Foreign Relations (Reference 3). By the

definition of treason, they have committed treason! This means you

lose your rights under the Constitution and Bill of Rights. Does this

sound far fetched? . The FED announced publicly that their first

objective was to get nationalism out of the American people's heads

because patriotism to a country would not be of value in the future.

The media makes us think the U.N. has all the answers, and to "think

globally." . State Department document 7277 calls for the disarming of

America, thus turning our sovereignty over to a one-world government.

Again, the media is pushing to eliminate guns. Our forefathers

believed that the right to bear arms would prevent a takeover of our

government. History shows that before any government took over, they

disarmed the citizens. Hitler did it, and before our Revolutionary War,

King George told us to disarm - good thing we didn't!

Under the Federal Reserve Bank Act, the bankers control our

economy. The FED controls interest rates and the amount of money in

the economy. These factors determine either economic prosperity or

the lack thereof. Bankers are now pushing for a one world government

and a cashless society. Why cashless? .What a cashless society really

means is the banks can now control you. Today you fear the IRS. In a

cashless society, if you disagree with the bankers' political goals, you'll

find your money gone via computer error. (For additional information

on a cashless society, read Reference 13, P. 174; Reference 3;

Reference 14, P. 9-12; Reference 15, P. 136; Reference 25, P. 216).

If you could accurately predict future interest rates, inflation and

deflation, you would know when to buy or sell stocks and make a

bundle of money. The FED has secret meetings (per Congressional

Record) to determine future interest rates and the amount of money to

be printed. The Securities Exchange Commission (SEC) by law, stops

insiders from profiting by privileged information. Congressional records

prove that FED bankers routinely hold secret meetings to profit by

manipulating the stock market via interest rates and the amount of

money they create. FED bankers also profit greatly from economic

disasters like the Depression (Reference 22, P. 56). The bankers

create inflation, sell their stocks before the market crashes, then buy

up stocks at cheaper prices. Bankers admitted this to Congress. This

violates the law, yet Congress does not act because these

bankers are large political contributors (Reference 17, P. 96-98;

Reference 1, P. 162-163; Reference 22, P. 114-170 & P. 136).

Thomas Jefferson predicted this scenario if we ever allowed a private

bank, like the FED, to create our currency (Reference 1, P. 247).

FED Chairman Burns states "[A] Killing can be made simply by

knowing the next few months newspapers ahead of time."

Congressman Patman said "The FED officials own more than 100

million dollars (of stocks) while making decisions influencing these

stock prices..." (Reference 24, P. 123). History proves that banks profit

from bankrupting a nation (Reference 22, P. 56). .

Section 7 of the Federal Reserve Act, passed December 23, 1913,

states that much of the profit of the FED should flow into the U.S.

Treasury. In 1959, new legislation allowed the FED to transfer bonds to

commercial banks at no cost to the bank. Now the FED receives less

interest income and less profit for the U.S. Treasury because the

money is diverted to other banks through an accounting entry

(Reference 17, P. 115-130). Congress and the IRS do not have access

to the financial records of the FED. Every year Congress introduces

legislation to audit the FED, and every year it is defeated. The FED

banking system could easily be netting 100s of billions in profit each

year. Through "creative accounting" profit can easily be reclassified as

expense (Reference 14, P. 20, Reference 17, P. 239). Within the first

few years, the shareholders of the FED received their initial investment

back with no risk. All the income is tax-free, except for property tax,

according to the Federal Reserve Act. .

"We the People" have pushed the following states to pass or introduce

legislation calling for an end to the FED: Arizona, Washington,

Arkansas, Idaho, Oregon, Indiana, and Texas. . By abolishing the

FED, we would not pay interest on Federal Reserve Notes. Until it is

abolished, the FED has a monopoly on profit on our currency and

whether our money supply will be increased or decreased, inflation or

depression. The banks are capable of controlling business by

controlling who can or cannot obtain a loan. .

WHY OUR FOREFATHERS FOUGHT THE FED

"Allow me to control the issue and the nation's money and I care not

who makes its laws!" The above quote has long been attributed to the

18th century banker Amshell Rothschild (his blood line controls the

FED). For if one unscrupulous group is allowed to print a nation's

money - it can eventually use that money to gain control of the press

AND the politicians - and thus gain control of making the nation's laws

- and finally - control of the nation itself. (Reference 4)

If you will take the time to read the reference material listed which has

been researched by Professors of Universities, Congresspeople, etc,

you will turn up information that might frighten you. For instance, in

1921 the stockholders of the Federal Reserve financed an organization

called the "Council on Foreign Relations" (CFR). Harpers magazine

called this the most powerful organization in the United States. Ninety

percent of the people in the State Department and key positions in the

Executive Branch are members of the CFR. The CFR publishes a

magazine called "Foreign Affairs." Read it if you want to know what is

going to happen in coming years. The CFR is in favor of a New World

Order (Reference 3).

Congressman Patman re-quoted Thomas Jefferson showing that our

founding fathers knew this banking principle very well. "I believe that

banking institutions are more dangerous to our liberties than standing

armies...." "Already they have raised up a money aristocracy that has

set the government at defiance. The issuing power (of money)," he

said, "should be taken from the banks and restored to the people to

whom it properly belongs." The American Revolution was a struggle to

wrest control of wealth from the Bank of England and to restore the

centers of power to the People where it "properly belongs." The

Constitution is specific about the authority of the People, through their

elected officials, to control the money, and thus, the affairs of their

government. (Reference 5, P. 32).

Ben Franklin said in his autobiography that the inability of the colonists

to get the power to issue their own money permanently out of the

hands of George III and the international bankers was [one of] the

PRIME reason[s] for the Revolutionary War. (Quoted in Reference 4)

Thomas Jefferson stated, "If the American people ever allow private

banks to control the issue of currency, first by inflation, then by

deflation, the banks and corporations that will grow up around them will

deprive the people of all property until their children will wake up

homeless on the continent their fathers conquered." (Reference 1, P.

247)

Congressman Charles A. Lindbergh of Minnesota said: "This [Federal

Reserve] Act establishes the most gigantic trust on Earth. When the

President [Wilson] signs this bill, the invisible government of the

Monetary Power will be legalized... the worst legislative crime of the

ages, perpetuated by this banking and currency bill." (Reference 5, P.

33)

Robert H. Hemphill (Credit Manager, Federal Reserve Bank in

Atlanta): "We are completely dependent on the commercial banks.

Someone has to borrow every dollar we have in circulation, cash, or

credit. If the banks create ample synthetic money we are prosperous; if

not, we starve. We are absolutely without a permanent money system.

When one gets a complete grasp of the picture, the tragic absurdity of

our hopeless position is almost incredible, but there it is. It [the banking

problem] is the most important subject intelligent persons can

investigate and reflect upon. It is so important that our present

civilization may collapse unless it becomes widely understood and the

defects are remedied very soon." (Reference 1, P. 247)

Napoleon, a sympathizer for the international bankers, turned against

them in the last years of his rule. He said: "When a government is

dependent upon bankers for money, they and not the leaders of the

government control the situation, since the hand that gives is above

the hand that takes... Money has no motherland; financiers are without

patriotism and without decency; their sole object is gain." (Reference

4)

Congresspeople have referred to Federal Reserve Notes as "FIAT"

(no-backing) money. (Reference 1, P. 128, 169)

In 1879 the Supreme Court declared that the U.S. Government can

legally issue United States Notes, debt and interest-free, just as

Lincoln and Kennedy attempted. (Reference 1, P. 233)

A bank that attempted to repossess property on the basis of default

faced Judge Mahoney in a jury trial. Jerome Daly was found innocent.

The bank could not foreclose on the property because it created the

loan money from thin air, as many banks do. Use this as a precedent

the next time any bank tries to foreclose on your house. (Reference

17, P. 82, 83 for court records)

The FED violates Security & Exchange Commission (SEC) rules.

(Reference 17, P. 96-98)

California 9th Circuit Court declared FED banks are private, not

government. (Reference 17, P. 273)

Mr. Marriner Eccles, who was Chairman of the board of Governors of

the Federal Reserve System longer than any other man, testified

before the Joint Economic Committee in August 1962. When

Chairman Rep. Wright Patman asked whether it was not a fact that the

Federal Reserve System has more power than either the Congress or

the President, Eccles replied: "In the field of money and credit, yes."

(Reference 1, P. 206)

Dr. Hans F. Sennholz, Chairman of the Department of Economics at

Grove City (PA) College stated: "The Federal Reserve System

facilitates the government's own inflationary financing in "periods of

emergency." It makes easy the inflationary financing of budget deficits

and the inflationary refunding of government loans. It stabilizes the

government bond market through inflationary methods and

manipulates this market to the advantage of the government. It does

all this by wrecking the purchasing power of the dollar; by subtly

stealing from the people of this country what it thus provides for the

government, through a process exactly on par with the coin

clipping of ancient kings but much less visible." (Reference 1, P. 250,

251)

Source: Banking Act of 1935, Hearings before a Subcommittee of the

Banking and Currency Committee, U.S. Senate, 74th Congress, 1st

Session, on S.1715, May 1935, pp 871-2. "The Federal Reserve

System is in the wrong hands. No Constitutional republic can function

when the government's money powers are in the hands of the financial

oligarchy such as New York financiers.

.By controlling Congress, the FED has been able to control the

nominating conventions of both political parties. In this way, it has been

able to hand-pick the presidential nominees so that no matter which

party wins, their nominee for President is under definite obligations to

the FED... (Reference 1, P. 210; Reference 22)

In 1975, the Rockefeller Foundation Report discussed the

"Interdependence" of the countries of the world on each other. It stated

we are one world and America shall become a nation-state under one

government. They also say we must reach a zero state population

growth. The Rockefeller Foundation stated that they have in excess of

747 million dollars to achieve this with. (Reference 3)

Congressman John R. Rarick states that the Council on Foreign

Relations CFR) is dedicated to a one world government. The media

remains conspicuously quiet. The CFR wants to convert the U.S. from

a sovereign, constitutional republic into a servile member state of a

one world dictatorship. On February 17, 1950, CFR member James

Warburg (banker, and architect of the Federal Reserve System) stated

before a Senate Foreign Relations Committee, "We shall have one

world government whether or not you like it, by conquest or consent."

Again, the media remained silent. In the April 1974 issue of the CFR

journal, "Foreign Affairs", page 558, Richard Gardener states that the

new world order "will be built... but an end run around national

sovereignty, eroding it piece by piece, will accomplish much more than

the old fashioned frontal assault." Congressman McDonald, Heinz and

Tower stated that this is a conspiracy. Again, the media remained

silent. (Reference 14, P. 17, 18, 32, 33). .

In a letter to Thomas Jefferson, John Adams wrote: "All the

perplexities, confusions, and distresses in America arise, not from

defects in the Constitution or confederation, not from want of honor or

virtue, as much as from downright ignorance of the nature of coin,

credit, and circulation".

 

British bankers have stated "Those that create and issue money and

credit direct the policies of government and hold in their hands the

destiny of the people". (Reference 1, P. 200-214) Adams, Jefferson,

and Lincoln believed that banker capitalism was more dangerous to

our liberties than standing armies. In a republic, banks would lend

money but could not create or manufacture it. (Reference 1, P. 215)

Later, Jefferson used stronger language and denounced the institution

as "one of the most deadly hostilities against the principles and form of

our Constitution." Some have said that Jefferson did not favor a strong

central bank. What he did not favor was the delivery of our monetary

system into private hands to be run for private profit. (Reference 1, P.

230) President James A. Garfield said: "Whoever controls the money

in any country is absolute master of industry [legislation] and

commerce". (Reference 1, P. 247, Reference 4) .

By controlling our own money, Thomas Jefferson expected that the

government would incur no debt, as had occurred in the European

system. (Reference 1, P. 243) European banks are like the FED.

THE FACTS:

* England lost the Revolutionary War.

* England nearly destroyed the Colonies by creating fake Colonial

money and hyper-inflation. * Rothschilds who control the Bank of

England (Like our FED) said that by controlling the issue of money

(printing it) you can control the government. * The authors of the

Constitution understood private banks" control over governments. The

Constitution gives only Congress the right to print money.

 

* From the beginning of the United States to present there have been

two ways to issue new currency:

The first way is to have the government print the money, debt and

interest-free, and circulate it through the economy for use as a medium

of exchange. There is no tax levied to pay interest on the currency in

circulation because it is debt and interest-free. This is the system

Lincoln used with his "greenbacks", a system Kennedy desired, and

Jefferson demanded.

The second method is: The Citizens allow the bank to print $500 billion

in currency (cash). The bank pays for printing costs, ink, and paper.

The Citizens do not charge the bank any interest for use of the $500

billion in printed currency. The bank uses the $500 billion cash to buy a

$500 billion government bond which pays the bankers interest. The

bank keeps some of the bonds and sells, for a fee (10%), some of the

bonds to the public. The bank can buy back the bonds from the public

simply by printing more money. The bankers can create inflation and

depressions by manipulating the amount of currency in circulation. The

FED operates exactly like this today. It also prints money (through the

U.S. Treasury) and uses this printed money to buy loans from other

banks. This money has created our inflation. We give the bank cash

interest-free, then they charge us interest on our own currency.

.

 

ANDREW JACKSON - A GREAT PRESIDENT!

When the 1816 charter expired in 1836, Andrew Jackson vetoed its

renewal. It was then that he made two famous statements: "The Bank

is trying to kill me - but I will kill it!" Later he said "If the American

people only understood the rank injustice of our money and banking

system - there would be a revolution before morning..." (Reference 4)

ABRAHAM LINCOLN - ANOTHER GREAT PRESIDENT!

President Lincoln needed money to finance the Civil War, and the

international bankers offered him loans at 24-36% interest. Lincoln

balked at their demands because he didn't want to plunge the nation

into such a huge debt. Lincoln approached Congress about passing a

law to authorize the printing of U.S. Treasury Notes. Lincoln said "We

gave the people of this Republic the greatest blessing they ever had -

their own paper money to pay their debts..." Lincoln printed over 400

million "Greenbacks" (debt and interest-free) and paid the soldiers,

U.S. government employees, and bought war supplies. The

international bankers didn't like it and wanted Lincoln to borrow the

money from them so that the American people would owe

tremendous interest on the loan. Lincoln's solution made this seem

ridiculous. (Reference 1, P. 46, 47; Reference 4)

Shortly after Lincoln's death, the government revoked the Greenback

law which ended Lincoln's debt-free, interest-free money. A new

national banking act was enacted and all money became interest

bearing again. (Reference 4)

The late Thomas A Edison explained the matter of issuing currency

this way:

"If our nation can issue a dollar bond (interest bearing) it can issue a

dollar bill (interest-free). The element that makes the bond good

makes a bill good also. The difference between the bond and the bill is

that the bond lets money brokers collect twice the amount of the bond

and an additional 20 percent, whereas the currency pays nobody but

those who contribute directly in some useful way. It is absurd to say

that our country can issue $30 million in bonds and not $30 million in

currency. Both are promises to pay: But one promise fattens the

usurers (interest collectors) and the other helps the people."

(Reference 1, P. 46)

The FED is owned largely by foreign banks that control our economy

and Congress through the power of money and the media which they

bought with profits generated with profits generated by artificial debt. .

Lincoln printed debt and interest-free Greenbacks (cash) to finance an

entire war. . Lincoln proved it. John F. Kennedy - a President with

vision! On June 4, 1964, President Kennedy issued Executive Order

11110. This Executive Order called for the issuance of new currency -

the United States Note. At the time, $4,292,893 of this currency was

put into circulation. This new currency was to be distributed through

the U.S. Treasury and not the Federal Reserve System. Furthermore,

it was to be issued debt and interest-free. Upon Kennedy's

assassination, this currency was withdrawn from circulation, never to

be issued again. The media remained silent on how Kennedy would

have eliminated the debt and interest payments, and therefore

eliminated the FED. .U.S. history proves that issuing debt and interest-

free currency allows our economy to prosper, as long as Congress

controls the amount of money created. .

REFERENCES:

(1) "The Federal Reserve Bank", by H.S. Kenan, published by The

Noontide Press

(2) National Committee to Repeal the Federal Reserve Act, P.O. Box

156, Westmont, IL 60559

(3) "The New World Order,Saving America", P.O. Box 1205,

Middleburg, FL 32050-1205

(4) "Bulletin", February 1989 & November 1991 issues, P.O. Box 986,

Ft. Collins, CO 80522 (Newsletter; $3 each)

(5) "The Most Secret Science", Betsy Ross Press, P.O. Box 986, Ft.

Collins, CO 80522 (Book) States attempt to abolish the FED. $12.00

(6) "Insider Report", P.O. Box 84903, Phoenix, AZ 85071

(7) "Phoenix Journal Express", P.O. Box 986, Tehachap, CA 93581

(8) $16 trillion in government and private debt, much of which the FED

printed and collected interest on (Reference 3)

(9) Northpoint Tactical Team, P.O. Box 129, Topton, NC 28781

(10) Christian Defense League, Box 449, Arabi, LA 70023

(11) "Bulletin", June 1992 issue, P.O. Box 986, Ft. Collins, CO 80522

(Newsletter; $3 each)

(12) "Savings and Loan Unethical Bailout" by Rev. Casimir F. Gierut

(13) "Dark Secrets of the New Age" by Texe Marrs

(14) "En Route to Global Occupation" by Gary H. Kah

(15) "One World" by John Amkerberg & John Weldon

(16) "The Spotlight", Liberty Lobby, 300 Independence Ave. S.E.,

Washington, D.C. 20003 (Newspaper)

(17) "Repeal the Federal Reserve Banks" by Rev. Casimir Frank

Gierut

(18) The Constitution of the United States

(19) "Walls in Our Minds" by M.J. Red Beckman, Common Sense

Press, P.O. Box 1544, Billings, MT 59103. A must read book - $2.50

(20) "The Law That Never Was" Volume I, Bill Benson & M.J. Red

Beckman,

P.O. Box 1544, Billings, MT 59103 or write to Bill Benson, P.O.

Box 550, South Holland, IL 60473. Proof that the 16th Amendment

(income tax) was never properly ratified.

(21) "New World Order: The Ancient Plan of Secret Societies" by

William T. Still

(22) "The Secrets of the Federal Reserve" by Mullins

(23) "The Social Security & Pension Conspiracy" by Metz

(24) "The History of the Federal Reserve. How to Replace It or How to

Reform It" by Metz - for references 23 & 24 write to Howard Metz,

P.O. Box 341, Malverne, LI 11565

(25) "The New World Order" by Pat Robertson. On page 131 he states

that we must abolish the FED.

(26) "Operation Vampire Killer 2000", highly recommended book.

$6.00 ($8.00 for 2) from ACLA, P.O. Box 8712, Phoenix, AZ 85066

This is a must read book with quotes from well known people. This

book proves conspiracy. Your local police needs to read this book so

they will protect you - not become United Nations Agents against you.

This book will stop the New World Order plan to take over the U.S.A.

"America Betrayed", Center For Action, 652 N. Glenview, Mesa, AZ

85213

For references 1, 12, and 17, contact The National Committee to

Repeal the Federal Reserve Act (Reference 2)

No more mystery as to who kil*led JFK and why.  
This EXCELLENT article explains it perfectly.    Now if we could just get Junior to implement JFK's still-valid Executive Order 11110.....

 [Note:  Don't forget that the Titanic was sunk by a bomb in April 1912 with the 3 strongest (wealthy, influential) opponents to the creation of the Fed on board/dead.  The Fed and their strong-arm IRS bullies took over our country in 1913.  The top secret 1910 planning meeting for all this is revealed in The Creature from Jekyll Island, a must-read for every patriot.  I'm sure you can find it at the library.  Please share this email with everyone!]

JFK vs. The Federal Reserve

by Anthony Wayne – Lawgiver.org  

On June 4, 1963, a virtually unknown Presidential  decree, Executive Order 11110, was signed with the authority to basically  strip the Federal Reserve Bank of its power to loan money to the United  States Federal Government at interest. With the stroke of a pen, President  Kennedy declared that the privately owned Federal Reserve Bank would soon  be out of business.

The Christian Law Fellowship has exhaustively  researched this matter through the Federal Register and Library of  Congress. We can now safely conclude that this Executive Order has never  been repealed, amended, or superceded by any subsequent Executive Order.  In simple terms, it is still valid.

When President John Fitzgerald  Kennedy - the author of Profiles in Courage - signed this Order, it  returned to the federal government, specifically the Treasury Department,  the Constitutional power to create and issue currency - money - without  going through the privately owned Federal Reserve Bank. President  Kennedy's Executive Order 11110 [the full text is displayed further below]  gave the Treasury Department the explicit authority: 'to issue silver  certificates against any silver bullion, silver, or standard silver  dollars in the Treasury.' This means that for every ounce of silver in the  U.S. Treasury's vault, the government could introduce new money into  circulation based on the silver bullion physically held there. As a  result, more than $4 billion in United States Notes were brought into  circulation in $2 and $5 denominations. $10 and $20 United States Notes  were never circulated but were being printed by the Treasury Department  when Kennedy was assassinated. It appears obvious that President Kennedy  knew the Federal Reserve Notes being used as the purported legal currency  were contrary to the Constitution of the united States of America. 

United States Notes were issued as an interest-free and debt-free  currency backed by silver reserves in the U.S. Treasury. We compared a  'Federal Reserve Note' issued from the private central bank of the United  States (the Federal Reserve Bank a/k/a Federal Reserve System), with a  'United States Note' from the U.S. Treasury issued by President Kennedy's  Executive Order. They almost look alike, except one says 'Federal Reserve  Note' on the top while the other says 'United States Note'. Also, the  Federal Reserve Note has a green seal and serial number while the United  States Note has a red seal and serial number.

President Kennedy  was assassinated on November 22, 1963 and the United States Notes he had  issued were immediately taken out of circulation. Federal Reserve Notes  continued to serve as the legal currency of the nation. According to the  United States Secret Service, 99% of all U.S. paper 'currency' circulating  in 1999 are Federal Reserve Notes.

Kennedy knew that if the silver-backed United States Notes were widely circulated, they would have  eliminated the demand for Federal Reserve Notes. This is a very simple  matter of economics. The USN was backed by silver and the FRN was not backed by anything of intrinsic value. Executive Order 11110 should have  prevented the national debt from reaching its current level (virtually all  of the nearly $9 trillion in federal debt has been created since 1963) if  LBJ or any subsequent President were to enforce it. It would have almost  immediately given the U.S. Government the ability to repay its debt  without going to the private Federal Reserve Banks and being charged  interest to create new 'money'. Executive Order 11110 gave the U.S.A. the  ability to, once again, create its own money backed by silver and realm  value worth something.

Again, according to our own research, just  five months after Kennedy was assassinated, no more of the Series 1958  'Silver Certificates' were issued either, and they were subsequently  removed from circulation. Perhaps the assassination of JFK was a warning  to all future presidents not to interfere with the private Federal  Reserve's control over the creation of money. It seems very apparent that  President Kennedy challenged the 'powers that exist behind U.S. and world  finance'. With true patriotic courage, JFK boldly faced the two most  successful vehicles that have ever been used to drive up debt:

1)  war (Viet Nam); and,

2) the creation of money by a privately owned  central bank. His efforts to have all U.S. troops out of Vietnam by 1965  combined with Executive Order 11110 would have destroyed the profits and  control of the private Federal Reserve Bank.

------------------------------------------------

Executive  Order 11110

AMENDMENT OF EXECUTIVE ORDER NO. 10289 AS AMENDED,  RELATING TO THE PERFORMANCE OF CERTAIN FUNCTIONS AFFECTING THE DEPARTMENT  OF THE TREASURY. By virtue of the authority vested in me by section 301 of  title 3 of the United States Code, it is ordered as follows: 

SECTION 1. Executive Order No. 10289 of September 19, 1951, as  amended, is hereby further amended - (a) By adding at the end of paragraph  1 thereof the following subparagraph (j): '(j) The authority vested in the  President by paragraph (b) of section 43 of the Act of May 12, 1933, as  amended (31 U.S.C. 821 (b)), to issue silver certificates against any  silver bullion, silver, or standard silver dollars in the Treasury not  then held for redemption of any outstanding silver certificates, to  prescribe the denominations of such silver certificates, and to coin  standard silver dollars and subsidiary silver currency for their  redemption,' and (b) By revoking subparagraphs (b) and (c) of paragraph 2  thereof. SECTION 2. The amendment made by this Order shall not affect any  act done, or any right accruing or accrued or any suit or proceeding had  or commenced in any civil or criminal cause prior to the date of this  Order but all such liabilities shall continue and may be enforced as if  said amendments had not been made.

JOHN F. KENNEDY
THE WHITE  HOUSE,
June 4, 1963

------------------------------------------------

Once  again, Executive Order 11110 is still valid. According to Title 3, United  States Code, Section 301 dated January 26, 1998:

Executive Order  (EO) 10289 dated Sept. 17, 1951, 16 F.R. 9499, was as amended by:
EO  10583, dated December 18, 1954, 19 F.R. 8725;
EO 10882 dated July 18,  1960, 25 F.R. 6869;
EO 11110 dated June 4, 1963, 28 F.R. 5605;
EO  11825 dated December 31, 1974, 40 F.R. 1003;
EO 12608 dated September  9, 1987, 52 F.R. 34617 The 1974 and 1987 amendments, added after Kennedy's  1963 amendment, did not change or alter any part of Kennedy's EO 11110. A  search of Clinton's 1998 and 1999 EO's and Presidential Directives has  also shown no reference to any alterations, suspensions, or changes to EO  11110.

The Federal Reserve Bank, a.k.a Federal Reserve System, is  a Private Corporation. Black's Law Dictionary defines the 'Federal Reserve  System' as: 'Network of twelve central banks to which most national banks  belong and to which state chartered banks may belong. Membership rules  require investment of stock and minimum reserves.' Privately-owned banks  own the stock of the FED. This was explained in more detail in the case of  Lewis v. United States, Federal Reporter, 2nd Series, Vol. 680, Pages  1239, 1241 (1982), where the court said: 'Each Federal Reserve Bank is a  separate corporation owned by commercial banks in its region. The  stock-holding commercial banks elect two thirds of each Bank's nine member  board of directors.'

The Federal Reserve Banks are locally  controlled by their member banks. Once again, according to Black's Law  Dictionary, we find that these privately owned banks actually issue money: 

'Federal Reserve Act Law which created Federal Reserve banks which  act as agents in maintaining money reserves, issuing money in the form of  bank notes, lending money to banks, and supervising banks. Administered by  Federal Reserve Board (q.v.)'.

The privately owned Federal Reserve  (FED) banks actually issue (create) the 'money' we use. In 1964, the House  Committee on Banking and Currency, Subcommittee on Domestic Finance, at  the second session of the 88th Congress, put out a study entitled Money  Facts which contains a good description of what the FED is: 'The Federal  Reserve is a total money-making machine. It can issue money or checks. And  it never has a problem of making its checks good because it can obtain the  $5 and $10 bills necessary to cover its check simply by asking the  Treasury Department's Bureau of Engraving to print them.'

Any one  person or any closely knit group who has a lot of money has a lot of  power. Now imagine a group of people who have the power to create money.  Imagine the power these people would have. This is exactly what the  privately owned FED is!

No man did more to expose the power of the  FED than Louis T. McFadden, who was the Chairman of the House Banking  Committee back in the 1930s. In describing the FED, he remarked in the  Congressional Record, House pages 1295 and 1296 on June 10, 1932: 

'Mr. Chairman, we have in this country one of the most corrupt  institutions the world has ever known. I refer to the Federal Reserve  Board and the Federal reserve banks. The Federal Reserve Board, a  Government Board, has cheated the Government of the United States and he  people of the United States out of enough money to pay the national debt.  The depredations and the iniquities of the Federal Reserve Board and the  Federal reserve banks acting together have cost this country enough money  to pay the national debt several times over. This evil institution has  impoverished and ruined the people of the United States; has bankrupted  itself, and has practically bankrupted our Government. It has done this  through the maladministration of that law by which the Federal Reserve  Board, and through the corrupt practices of the moneyed vultures who  control it.'

Some people think the Federal Reserve Banks are  United States Government institutions. They are not Government  institutions, departments, or agencies. They are private credit monopolies  which prey upon the people of the United States for the benefit of  themselves and their foreign customers. Those 12 private credit monopolies  were deceitfully placed upon this country by bankers who came here from  Europe and who repaid us for our hospitality by undermining our American  institutions.

The FED basically works like this: The government  granted its power to create money to the FED banks. They create money,  then loan it back to the government charging interest. The government  levies income taxes to pay the interest on the debt. On this point, it's  interesting to note that the Federal Reserve Act and the sixteenth  amendment, which gave congress the power to collect income taxes, were  both passed in 1913. The incredible power of the FED over the economy is  universally admitted. Some people, especially in the banking and academic  communities, even support it. On the other hand, there are those, such as  President John Fitzgerald Kennedy, that have spoken out against it. His  efforts were spoken about in Jim Marrs' 1990 book Crossfire:' 

Another overlooked aspect of Kennedy's attempt to reform American  society involves money. Kennedy apparently reasoned that by returning to  the constitution, which states that only Congress shall coin and regulate  money, the soaring national debt could be reduced by not paying interest  to the bankers of the Federal Reserve System, who print paper money then  loan it to the government at interest. He moved in this area on June 4,  1963, by signing Executive Order 11110 which called for the issuance of  $4,292,893,815 in United States Notes through the U.S. Treasury rather  than the traditional Federal Reserve System. That same day, Kennedy signed  a bill changing the backing of one and two dollar bills from silver to  gold, adding strength to the weakened U.S. currency.

Kennedy's  comptroller of the currency, James J. Saxon, had been at odds with the  powerful Federal Reserve Board for some time, encouraging broader  investment and lending powers for banks that were not part of the Federal  Reserve system. Saxon also had decided that non-Reserve banks could  underwrite state and local general obligation bonds, again weakening the  dominant Federal Reserve banks.'

In a comment made to a Columbia  University class on Nov. 12, 1963, ten days before his assassination,  President John Fitzgerald Kennedy allegedly said:

'The high office  of the President has been used to foment a plot to destroy the American's  freedom and before I leave office, I must inform the citizen of this  plight.'

In this matter, John Fitzgerald Kennedy appears to be the  subject of his own book... a true Profile of Courage.

Federal Reserve 4

25 Fast Facts About The Federal Reserve 

Aug 28,2014

 

Great-Seal-Photo-by-Ipankonin-300x300As we hit the 100th year anniversary of the creation of the Federal Reserve, it is absolutely imperative that we get the American people to understand that the Fed is at the very heart of our economic problems.  It is a system of money that was created by the bankers and that operates for the benefit of the bankers.  The American people like to think that we have a “democratic system”, but there is nothing “democratic” about the Federal Reserve.  Unelected, unaccountable central planners from a private central bank run our financial system and manage our economy.  There is a reason why financial markets respond with a yawn when Barack Obama says something about the economy, but they swing wildly whenever Federal Reserve Chairman Ben Bernanke opens his mouth.  The Federal Reserve has far more power over the U.S. economy than anyone else does by a huge margin.  The Fed is the biggest Ponzi scheme in the history of the world, and if the American people truly understood how it really works, they would be screaming for it to be abolished immediately.  The following are 25 fast facts about the Federal Reserve that everyone should know…

#1 The greatest period of economic growth in U.S. history was when there was no central bank.

#2 The United States never had a persistent, ongoing problem with inflation until the Federal Reserve was created.  In the century before the Federal Reserve was created, the average annual rate of inflation was about half a percent.  In the century since the Federal Reserve was created, the average annual rate of inflation has been about 3.5 percent, and it would be even higher than that if the inflation numbers were not being so grossly manipulated.

#3 Even using the official numbers, the value of the U.S. dollar has declined by more than 95 percent since the Federal Reserve was created nearly 100 years ago.

#4 The secret November 1910 gathering at Jekyll Island, Georgia during which the plan for the Federal Reserve was hatched was attended by U.S. Senator Nelson W. Aldrich, Assistant Secretary of the Treasury Department A.P. Andrews and a whole host of representatives from the upper crust of the Wall Street banking establishment.

#5 In 1913, Congress was promised that if the Federal Reserve Act was passed that it would eliminate the business cycle.

#6 The following comes directly from the Fed’s official mission statement: “To provide the nation with a safer, more flexible, and more stable monetary and financial system. Over the years, its role in banking and the economy has expanded.”

#7 It was not an accident that a permanent income tax was also introduced the same year when the Federal Reserve system was established.  The whole idea was to transfer wealth from our pockets to the federal government and from the federal government to the bankers.

#8 Within 20 years of the creation of the Federal Reserve, the U.S. economy was plunged into the Great Depression.

#9 If you can believe it, there have been 10 different economic recessions since 1950.  The Federal Reserve created the “dotcom bubble”, the Federal Reserve created the “housing bubble” and now it has created the largest bond bubble in the history of the planet.

#10 According to an official government report, the Federal Reserve made 16.1 trillion dollars in secret loans to the big banks during the last financial crisis.  The following is a list of loan recipients that was taken directly from page 131 of the report…

Citigroup - $2.513 trillion
Morgan Stanley - $2.041 trillion
Merrill Lynch - $1.949 trillion
Bank of America - $1.344 trillion
Barclays PLC - $868 billion
Bear Sterns - $853 billion
Goldman Sachs - $814 billion
Royal Bank of Scotland - $541 billion
JP Morgan Chase - $391 billion
Deutsche Bank - $354 billion
UBS - $287 billion
Credit Suisse - $262 billion
Lehman Brothers - $183 billion
Bank of Scotland - $181 billion
BNP Paribas - $175 billion
Wells Fargo - $159 billion
Dexia - $159 billion
Wachovia - $142 billion
Dresdner Bank - $135 billion
Societe Generale - $124 billion
“All Other Borrowers” - $2.639 trillion

#11 The Federal Reserve also paid those big banks $659.4 million in fees to help “administer” those secret loans.

#12 The Federal Reserve has created approximately 2.75 trillion dollars out of thin air and injected it into the financialsystem over the past five years.  This has allowed the stock market to soar to unprecedented heights, but it has also caused our financial system to become extremely unstable.

#13 We were told that the purpose of quantitative easing is to help “stimulate the economy”, but today the Federal Reserve is actually paying the big banks not to lend out 1.8 trillion dollars in “excess reserves” that they have parked at the Fed.

#14 Quantitative easing overwhelming benefits those that own stocks and other financial investments.  In other words, quantitative easing overwhelmingly favors the very wealthy.  Even Barack Obama has admitted that 95 percent of the income gains since he has been president have gone to the top one percent of income earners.

#15 The gap between the top one percent and the rest of the country is now the greatest that it has been since the 1920s.

#16 The Federal Reserve has argued vehemently in federal court that it is “not an agency” of the federal government and therefore not subject to the Freedom of Information Act.

#17 The Federal Reserve openly admits that the 12 regional Federal Reserve banks are organized “much like private corporations“.

#18 The regional Federal Reserve banks issue shares of stock to the “member banks” that own them.

#19 The Federal Reserve system greatly favors the biggest banks.  Back in 1970, the five largest U.S. banks held 17 percent of all U.S. banking industry assets.  Today, the five largest U.S. banks hold 52 percent of all U.S. banking industry assets.

#20 The Federal Reserve is supposed to “regulate” the big banks, but it has done nothing to stop a 441 trillion dollar interest rate derivatives bubble from inflating which could absolutely devastate our entire financial system.

#21 The Federal Reserve was designed to be a perpetual debt machine.  The bankers that designed it intended to trap the U.S. government in a perpetual debt spiral from which it could never possibly escape.  Since the Federal Reserve was established nearly 100 years ago, the U.S. national debt has gotten more than 5000 times larger.

#22 The U.S. government will spend more than 400 billion dollars just on interest on the national debt this year.

#23 If the average rate of interest on U.S. government debt rises to just 6 percent (and it has been much higher than that in the past), we will be paying out more than a trillion dollars a year just in interest on the national debt.

#24 According to Article I, Section 8 of the U.S. Constitution, the U.S. Congress is the one that is supposed to have the authority to “coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures”.  So exactly why is the Federal Reserve doing it?

#25 There are plenty of possible alternative financial systems, but at this point all 187 nations that belong to the IMF have a central bank.  Are we supposed to believe that this is just some sort of a bizarre coincidence?

Source:  http://worldtruth.tv/25-fast-facts-about-the-federal-reserve-please-share-with-everyone-you-know/

 

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