Saturday, June 30, 2007

The Federal Reserve Bank is Not a Government Agency

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"If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them (around the banks), will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered." - Thomas Jefferson

"Give me control of a nation's money and I care not who makes her laws." - Meyer Rothschild
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Money, Banking, and the Federal Reserve
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The Federal Reserve System and Black SwansBy Marilyn M. Barnewall
August 4, 2009
NewsWithViews.com
http://www.newswithviews.com/Barnewall/marilyn112.htm
Putting the illegal Federal Reserve System in charge of bank regulation is like hiring John Dillinger to drive a Wells Fargo truck filled with money away from the bank. Actually, the Dillinger alternative probably holds a higher ratio of potential success for American taxpayers.First, why is the Federal Reserve System (it is not a bank) illegal?
A real central bank is just that: a central bank owned and operated by the government. It is not a private corporation.
Next, a quick read of the Tenth Amendment says “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people." Since the Constitution does not give Congress the right to create a private corporation – a non-government entity – called the Federal Reserve and give it the responsibility for managing our currency (a responsibility given by the Constitution to Congress and the Treasury), the only legal way a true central bank can be created is by the States, respectively, or by the people. The argument with the Tenth Amendment defense against the Fed is that the Congress legally represents “the people” and, thus, Congress did have the right to create the Fed. That may deal with the “or by the people” portion of the Tenth Amendment. It does not deal with the “created by the States” part. And, if the Fed functioned under the controls and auspices of the nation’s government as other central banks do, they might have a point. But, it does not… so those opposed still win the argument.Perhaps the best argument against President Obama’s proposed expansion of the Fed’s responsibilities so it also regulates savings and loans, loan companies – anything that moves and makes or uses money – is performance.
When it was established in 1913, the Federal Reserve assumed responsibility for a currency worth 100 pennies to the dollar. Today, that same dollar is worth four pennies. How does this achievement qualify an organization to be given more responsibilities so it can perform them poorly, too? Most people also agree that the Federal Reserve System (not bank – it is not a bank) is, along with past and present Treasury Secretaries, heavily at fault for the current worldwide financial crisis. Surely we, the people, don’t need to expand the Fed’s power base so it can create even more crises.Many people believe the reason President John F. Kennedy was assassinated was his creation of Executive Order No. 11110. I first researched that order in 1997. It was Kennedy’s attempt to strip the Fed of its greatest power: the ability to charge the U.S. government interest for loaning it money – or, more accurately, for creating money out of thin air and charging interest for letting the American people use this puff of magic. His EO was structured to return to the Treasury Department the power to issue currency with no involvement by the Federal Reserve System.
Under EO 11110, Treasury was given the power “to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury.” Thus, for every ounce of silver in Treasury’s vault, new money could be brought into circulation. The EO was signed on June 4, 1963, and, as anyone my age can remember, President John F. Kennedy was killed later that year, on November 22nd. During the time Executive Order 11110 gave the U.S. Treasury this power, close to $4.3 billion in U.S. notes were brought into circulation.This was an extremely important Executive Order – and not just for the precedent it set. It lit a candle that showed America how to abolish the Federal Reserve while not destroying the value of the currency in existence yet putting forth a second form of currency that could stop dependence on the first. Executive Order 11110 made it possible for the nation to create its own currency – backed by silver.The primary problem with a gold- and/or silver-backed currency is that the Fed has printed so much money there is too little gold and silver to provide sufficient coins or paper currency in the volume required. There are, however, alternatives. Just as the International Monetary Fund (IMF) is talking about replacing the U.S. dollar as the international currency of trade with a “basket of selected currencies,” the U.S. dollar can be redesigned so its value rests on a combination of gold, silver, and productivity. In general, a good economic rule of thumb is currency growth that is symbiotic to the gross domestic product. If American productivity grows by three percent more than last year, the money supply is also allowed to grow by three percent.
No additional silver certificates were issued after JFK’s assassination but the Order was never directly reversed. In 1987, Executive Order 12608, written by President Ronald Reagan, once again amended the original Order, Number 10289. To investigate the viability of the changes made by John Kennedy, you have to start with EO 10209. That’s the Order John Kennedy amended.
Here is the key paragraph from Executive Order 11110 – what JFK added to 10289:
“(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 denomination of such silver certificates, and to coin standard silver dollars and subsidiary silver currency for their redemption.”
The question must be asked: If this Executive Order has not been revoked, why has no president since Kennedy utilized it? Was the assassination of JFK a warning to future presidents? A lot of people think so. The debt to the Federal Reserve System’s creation of money and the social control thereof threatens the entire oligarchy system. It is what produced the elites who now shamelessly perform whatever fraud they can to steal even more from the people. Money provides the means for war… and America’s money is created by a privately-owned corporation that calls itself a central bank: the Federal Reserve. If that doesn’t scare you, nothing will.
Lacking politicians with the will to even audit the Federal Reserve, how do we get out of this mess? I think Nassim Taleb, author of Black Swan (the best-selling non-fiction book of 2007) made ten good “Black Swan” suggestions in a recent Financial Times article.
For those who are unaware, Taleb defines a Black Swan (the financial services definition) as unexpected, rare events. Black Swans represent highly improbable events and have three characteristics: Unpredictability, massive impact; and, after the event is known, people’s explanation of what happened make it appear less random… more predictable than it actually was.
Here is how Taleb defines “Ten Principles for a Black Swan-proof World”
1. “Don’t give the recovery to the same idiots who created the mess.”
2. “Nothing should ever be too big to fail. People who were driving a school bus blindfolded (and crashed it), should never be given a new bus.”
3. “Stop socialization of losses and privatization of gains.” Taleb warns: We've "managed to combine the worst of capitalism and socialism. In France in the 1980s, the socialists took over the banks. In the U.S. in the 2000s, the banks took over the government."
4. “Incentive bonuses are increasing America's financial risks. No incentives without disincentives: capitalism is about rewards and punishments, not just rewards."
5. “High-leveraged debt increases the danger of a massive meltdown. Highly leveraged debt combined with bailouts and stimulus spending causes ‘wild and dangerous gyrations and leaves no room for error.’”
6. “No more derivatives... nobody understands these WMDs.” Taleb warns: "Do not give children sticks of dynamite, even if they come with a warning. ... Derivatives need to be banned because nobody understands them and few are rational enough to know it.” (Note: I’ve said the same thing since 1994! He’s absolutely right!)
7. “Restoring confidence' is for Ponzis, politicians and economists… governments cannot stop the rumors." People who talk about ‘restoring confidence’ are usually hiding something.
8. “Do not give an addict more drugs if he has withdrawal pains. Using leverage to cure the problems of too much leverage is not homeopathy, it is denial. The debt crisis is not a temporary problem, it is a structural one. We need rehab."
9. “Never count on Wall Street advice or management for retirement.” As you can imagine, Taleb is not popular with the guys and gals at Goldman Sachs for this one!
10. “Let entrepreneurs, not bankers, take risks and run America.” Entrepreneurs understand how to manage risk. They do not expect profits without risk and they do not expect others to cover their losses (taxpayers) while they reap profits (investment bankers).
I believe Mr. Taleb and I agree that the path to America’s economic recovery does not lie in the arms of the Federal Reserve System or Dr. Ben Bernanke. Will someone please explain this to President Obama’s economic advisors? Maybe to Obama?
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Fed's Inspector General Elizabeth Coleman Missing Trillions of Taxpayers' Dollars
Fred Burks for PEERS and the WantToKnow.info Team

June 2009
http://www.wanttoknow.info/banking_finance/elizabeth_coleman_fed_missing_trillions
Dear friends,
Elizabeth Coleman is the inspector general of the Federal Reserve of the United States, commonly referred to as the Fed. This is the little-understood institution which prints and regulates all U.S. money. As inspector general, the Federal Reserve website states Elizabeth Coleman is "responsible for preventing and detecting waste, fraud, and abuse." Yet in eye-opening, videotaped Congressional testimony, Fed Inspector General Coleman acknowledged that she can't account for many trillions – yes trillions – of dollars of taxpayers' money.
Do you know how much one trillion dollars is? It's over $3,000 for every man, woman, and child in the U.S. If you only count taxpayers, it's equivalent to $7,000 for every taxpayer. Yet Coleman acknowledges the Fed is not missing just $1 trillion, but many trillions of taxpayers' dollars. In the video clip she says she knows nothing about nine trillion dollars ($9,000,000,000,000) that is claimed to be unaccounted for. That's $63,000 for each taxpayer. It's also three times the amount of the entire annual federal budget of the United States missing in action! These numbers are simply staggering, yet they are getting amazingly little media coverage.
There are many other problems with the Federal Reserve, which by the way, is not really federal nor a true reserve. Members of the Fed's board of governors are appointed by the president, yet during their 14-year terms the U.S. president and Congress have no power over them. Even more revealing is the fact the the Fed is actually owned by the largest banks in the U.S. Take a look and see you if can find who owns the Fed on their website. They avoid talking about this. Nor does the Fed have a full reserve as most people would expect. You can verify and learn lots more about these and other unusual aspects of the Fed by clicking here.
If you care about the many thousands of missing dollars you personally have paid in taxes, you must watch the astonishing five-minute video clip and read the accompanying commentary I've posted at the link below. This is incredibly important information. And please let your friends and colleagues know about this. By informing caring citizens about what's going on behind the scenes with banking and with our tax dollars, we can create a powerful wave of concern which will force major change for the better in our world. Thank you for caring.
http://tinyurl.com/moalzr - Article & five-minute clip of Fed Inspector General Elizabeth Coleman's testimony
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Audit the Federal Reserve
By Marilyn M. Barnewall
June 10, 2009
NewsWithViews.com
http://www.newswithviews.com/Barnewall/marilyn107.htm
Many have heard of Congressman Ron Paul’s proposed Bill requiring an audit of the Federal Reserve. It is finally getting some traction.
Congressman Paul’s Bill (HR 1207) was submitted to Committee on 26 February 2009. HR 1207 is short – even the reading-challenged Members of the House should have no problem knowing what this legislation contains:
A BillTo amend title 31, United States Code, to reform the manner in which the Board of Governors of the Federal Reserve System is audited by the Comptroller General of the United States and the manner in which such audits are reported, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
Section 1. Short TitleThis Act may be cited as the `Federal Reserve Transparency Act of 2009'.
SEC. 2. AUDIT REFORM AND TRANSPARENCY FOR THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM.
(a) In General- Subsection (b) of section 714 of title 31, United States Code, is amended by striking all after `shall audit an agency' and inserting a period.
(b) Audit- Section 714 of title 31, United States Code, is amended by adding at the end the following new subsection:
(e) Audit and Report of the Federal Reserve System-
`(1) IN GENERAL- The audit of the Board of Governors of the Federal Reserve System and the Federal reserve banks under subsection (b) shall be completed before the end of 2010.
`(2) REPORT-
`(A) REQUIRED- A report on the audit referred to in paragraph (1) shall be submitted by the Comptroller General to the Congress before the end of the 90-day period beginning on the date on which such audit is completed and made available to the Speaker of the House, the majority and minority leaders of the House of Representatives, the majority and minority leaders of the Senate, the Chairman and Ranking Member of the committee and each subcommittee of jurisdiction in the House of Representatives and the Senate, and any other Member of Congress who requests it.
`(B) CONTENTS- The report under subparagraph (A) shall include a detailed description of the findings and conclusion of the Comptroller General with respect to the audit that is the subject of the report, together with such recommendations for legislative or administrative action as the Comptroller General may determine to be appropriate.'.
HR 1207 has been submitted to House Committee on Financial Services chaired by Congressman Barney Frank. It has 179 House (not Committee) supporters. Part Two of this article lists the legislators who support HR 1207, lists the members of the Committee, and gives readers the White House switchboard number. Now is the time to call and politely insist that this legislation make it out of Committee and be brought to the floor of the House for a vote. We, the people, deserve to know which legislators support the ongoing secrecy of the Federal Reserve. Such people need to be voted out of office because they support the lack of transparency that has caused the current financial ills of America.
Most Americans believe the Federal Reserve is part of the federal government. It is not.
If you ask who creates our money, most answer “the government” or “the treasury.” Neither is true. Today that responsibility falls to Ben Bernanke, Chairman of the Board of Governors of the Federal Reserve System.
America’s founding fathers were very specific about the creation of money. Article I, Section 8 of our Constitution charges the Congress with “the power to coin money and regulate the value thereof.” Many argue it violates the Constitution to turn these powers over to a non-governmental, privately-owned, highly-profitable, outside third party like the Federal Reserve – structured very much like any world cartel – OPEC is a good example. Though it is defined by some as “a government entity with private components,” its structure and lack of transparency make it appear more like OPEC than any government agency.
The Federal Reserve is a cartel of bankers and investment bankers who coordinate the production, pricing and marketing of money in the United States. This particular cartel also utilizes the police power of the federal government to enforce its agreements.
Thomas Jefferson once said that a private central bank (like the Federal Reserve) which issues the public currency was “a greater menace to the liberties of the people than a standing army.”
Member banks own the Federal Reserve System. Private investors own member banks.
The birth of the Federal Reserve began one windy November night in 1910 at a New Jersey train depot. Rhode Island Senator Nelson Aldrich, the political spokesman at the time for big business interests, hosted a “hunting” party. His private railway car was hooked to a train that, after a few transfers to other trains, would get people close to Jekyll Island. They were then transported by yacht to the island.
Senator Aldrich’s party consisted of:
1- Abraham Piatt Andrew, Assistant Secretary of the United States Treasury 2- Frank A. Vanderlip, president of National City Bank of New York (now Citibank, then representing William Rockefeller and Kuhn, Loeb & Co, international investment bankers) 3- Henry P. Davison of J.P. Morgan Company 4- Charles D. Norton, president of J.P. Morgan’s Bankers Trust Company5- Paul M. Warburg, a partner in Kuhn, Loeb & Company, was also part of the group. Warburg represented the Rothschild banking dynasty in England and France. Mr. Warburg was the brother of Max Warburg who headed a banking consortium in Germany and the Netherlands.
The Rothschild-controlled banking system of Europe wanted America to have a central bank and we got one.
The Jekyll Island plan was pretty simple. They wanted a central bank that allowed them to control the money supply in the U.S. An entity had to be created that looked like a duck, walked like a duck, but was not called a duck -- or, a central bank. Further, the entity had to look like it was controlled by Congress even though it wasn’t.
Is this significant? Does it matter? In 1913, $1,000 could buy what it took $10,000 to buy in 1994.
For that, you can thank the Federal Reserve!
The Federal Reserve has three primary components.
The Board of Governors determines the system’s monetary policy. The Board consists of seven members, appointed by the President and confirmed by the Senate. Each term is for 14-years and each is staggered so no single President can dominate Federal Reserve policy. A case can, however, be made that because of George H.W. Bush’s presidency from 1988-1992, and George W. Bush’s presidency from 2000-2008, the Bush family had an inordinate amount of influence in the current structure of the Federal Reserve.
Regional Reserve Banks hold cash reserves of the system, supply currency to member banks, clear checks, and act as fiscal agents for the government. Member banks elect directors of the regional Reserve Banks. Larger banks -- Bank of America, Citibank and Chase Manhattan, for example -- hold more shares than smaller banks (you don’t suppose that’s why they are “too big to fail,” do you?). However, they have only one vote in the selection of Regional Reserve Bank directors.
The Federal Open-Market Committee implements monetary policy set by the national Board. It controls most of its own policy. It manipulates our money supply and interest rates by purchasing or selling government securities. It may do this via the purchase or sale of foreign currencies and securities of other governments. Money is created and interest rates go down when the Fed purchases. When the Fed sells government securities, the money supply is reduced and interest rates go up.
The Committee is made up of the national Board of Governors plus five of the twelve regional Presidents. Twenty-four bond dealers handle all sales of government securities – and they collect dealer’s commissions on each transaction.
Fed monetary policy decisions are made at secret meetings. We, the public, get a brief report a few weeks after decisions are made. Transcripts of deliberations are destroyed ... a policy which began when, in 1970, the Freedom of Information Act was passed. Theoretically, the CIA cannot get away with the kind of secrecy this non-government Board can!
The federal government does not own any stock in the Federal Reserve System. The Fed is privately owned. In essence, owning stock in the Federal Reserve doesn’t imply ownership. It just shows how much operating capital each bank has in the system.
The U.S., except for a brief period of time, operated without a central bank from the time the nation was founded under the Constitution in 1789, until 1913. Unless my math is off, that’s 124 years. We have operated under a central bank (Federal Reserve) for only 78 years.
The Congress could abolish the Federal Reserve System by a single majority vote. If the vote is vetoed by the Executive Branch, a two-thirds majority vote is required to override the veto. If the System is abolished, all bank-clearing functions can easily be transferred to the Treasury. The power to “coin money and regulate the value thereof” would once again fall under the oversight of the Congress, where our Constitution says it should be.
Since no agency, government or otherwise, has more impact on our financial lives than the Federal Reserve, it is a topic with which all Americans should be familiar. Very few are.
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Daily Bell ArchiveIssue 234 • Sunday, March 22, 2009
Special Guest Interview: G. Edward Griffin discusses the Federal Reserve, Bernanke's bailouts, Obama's stimulus plans and much more...G. Edward Griffin/Reality ZoneIntroduction: The editors of the Daily Bell have been avid readers of Mr. Griffin's tremendous literary contributions on free markets and personal liberty. Mr. Griffin is an American film producer, author and political lecturer.
The focus of today's interview is the relevance, perhaps even more so today than when it was first published, of G. Edward Griffin's business bestseller, The Creature from Jekyll Island.
First released in 1994, The Creature from Jekyll Island is a no-holds-barred look into the inner workings of the Federal Reserve banking system, or cartel if you will. Mr. Griffin peels back the layers of obstruction to rational analysis and leads the reader on a wonderfully researched, although disturbing, journey from the very beginning, when the Fed was still in the planning stages, up to the present, where it is now struggling to survive.
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Daily Bell: We'd like to begin by thanking you for taking the time out of your very busy schedule to grant Appenzeller Business Press and readers of TheDailyBell.com this exclusive interview.
G. Edward Griffin: Thanks for inviting me. I am honored to be invited to share my thoughts with your prestigious readership.
Daily Bell: For those of our readers unfamiliar with the fact that the US Federal Reserve is not a government agency, but a privately controlled corporation, how would you best describe this creature and how did it come into being?
G. Edward Griffin: Many people are shocked to discover that The Federal Reserve System is a cartel, no different than a banana cartel, a sugar cartel, or an oil cartel. It is a banking cartel composed of the largest and most powerful American banking institutions. This group wrote a cartel agreement in 1913 and then persuaded Congress to give it the status of law. In that way, the cartel can be sure that all the banks will conform to the agreement or be subject to criminal prosecution, a benefit that many cartels do not enjoy.
The first draft of the cartel agreement was prepared at a highly secret meeting held on Jekyll Island in November of 1910. The participants of that meeting represented the most powerful banks in the nation and also had financial roots to the largest banks of Europe as well. Those American institutions included the J.P. Morgan companies; the banking conglomerate of William Rockefeller; and Kuhn, Loeb and Company. The European connection included the Rothschild banks of England and France and the Warburg banking consortium of Germany and the Netherlands.
The irony in this is that the Federal Reserve Act was sold to the American public as a bill to control the banks when, in truth, it was drafted by the very banking interests it supposedly would control. The banking cartel decided to be its own regulator while making it appear that it was being regulated by Congress. That was the reason for the secrecy surrounding the Jekyll Island meeting. If the public had realized that the Federal Reserve Act was parented by the same industry it was supposed to control, there would have been great opposition to it, and it never would have been enacted into law.
Daily Bell: In your best selling book, The Creature from Jekyll Island, you refer to fractional reserve banking as the Mandrake Mechanism. It really isn't much of a trick and certainly not a very funny one considering it's a trick used to redistribute the wealth and savings of the majority to a few - leaving a path of destruction in its wake. How does this rather sick trick work?
G. Edward Griffin: I named this after a comic book character from the 1940s called Mandrake the Magician. Mandrake could wave his large, black cape and make anything appear out of thin air and, with another wave, make it disappear again. He was quite a guy and, when I finally came to understand how the Federal Reserve System creates money out of nothing and causes the money supply to shrink as well, I knew that it was The Mandrake Mechanism.
At first, the mechanism can appear to be very complicated - and, in fact, one has to be a diligent student to follow the twists and turns, the banking terminology, and the accounting concepts; but, when one stands back and observes the operation as a whole, the mechanism is simple. The problem most people have with understanding it is that they try to make sense out of it. They try to understand how it is fair and how everyone is benefitted by it. The fact is that it does not make sense insofar as fairness is concerned, and the administrators are benefitted far more than the participants. In fact, at the end of the game, the participants (meaning the general public) actually are plundered by it while the administrators are greatly enriched.
Here is how it works: The first step happens when the government needs to borrow more money than the public is willing to lend at the interest rate offered. At that point, the government turns to its partner, The Federal Reserve System, and goes through the motions of borrowing the shortfall. I say "goes through the motions" because the Fed has no money to loan. The government, however, gives it permission to create the money it needs out of thin air, a move that, if done by anyone else, would send them to prison for counterfeiting. The Fed can do it, however, because the government authorized it to do so when it passed the Federal Reserve Act. So the Fed creates whatever amount of money is needed and then gives it to the government, calling it a loan. In truth, the government essentially printed its own money but, instead of using printing presses, it used the banking system which entered numbers into an accounting ledger and called it checkbook money. The end result is the same except that the public doesn't understand it (a great advantage to the politicians) and the banks earn interest on so-called loans of money it never had (a great advantage to the banks).
That's just the starting point. When the government spends the money it receives from the Fed, it goes to individuals and corporations that immediately deposit it into their private banking accounts. This is where the action really becomes interesting. The banks (under the protection of the Federal Reserve Act) are allowed to create out of thin air up to ten times the amount of those deposits and then go through the appearance of lending it to their customers. Once again, I use the phrase "go through the appearance" to emphasize that most of the money they loan does not exist until borrowers request it. At that point, the money is created out of thin air and advanced to the borrower - at interest, of course. Think about that. Banks collect interest on nothing.
When the loans are paid back, the money disappears back into the vaults or ink wells, or computer chips from which it came. That's the Mandrake Mechanism.
Daily Bell: The Federal Reserve states that one of its primary objectives is to protect us from inflation. It doesn't sound like the guys running the Fed really care about doing that? In fact, it seems as if they are purposefully doing the exact opposite.
G. Edward Griffin: Remember, the Fed is a banking cartel. It was not created to serve the public or the nation or the economy or any of the other myths we are taught in school. All cartels have but one mission, and that is to serve the best interests of the members of the cartel. Period. When Greenspan or Bernanke tell Congress that the Fed is trying to fight inflation or promote employment or help industry or help homeowners, don't believe any of it. That is what they have to say to keep the gullible public asleep and content with the system. It wouldn't go over well if they were to say, "Who cares about inflation? We are bankers, and our mission is to keep the banks afloat. Our mission is to get the stupid voters to cough up enough money through taxes and inflation to reimburse us for all those bad loans we have made - and to pay our exorbitant salaries. That's our mission and, by God, don't think for an instant we're going to let anyone stand in our way."
Daily Bell: Why do you suppose more media outlets don't question such an obviously destructive monetary structure? Do you think there is a coordinated relationship between those in control of the mainstream media outlets and those in control of the Federal Reserve?
G. Edward Griffin: I think the answer is obvious just by studying performance. However, an examination of the people on the boards of directors and the companies they represent confirms that Media companies are controlled by the same financial matrix we are discussing. Any editor or reporter in a major media company knows instinctively that it would be career suicide to speak the whole truth about the Federal Reserve.
Daily Bell: So, is it safe to say that the general public is not supposed to know the truth about the Federal Reserve and the intentions of those who control it?
G. Edward Griffin: Your phrasing is significant. "The general public is not supposed to know ..." My reply is: Who is doing the supposing? Of course, I understand the implication that the financial elite say the public is not supposed to know, and I agree. If the public understood, the scam would end. But, from my point of view, and from the view of members of Freedom Force International who are working to rebuild financial security and political freedom, the public definitely is supposed to know the truth. It is on this very point that the future of mankind is hinged.
Daily Bell: Do you think the liberating power of the Internet is something the banking elite is not prepared for and that the awareness spawning around the globe about their deceitful banking practices has them scrambling for solutions?
G. Edward Griffin: There is no doubt that the ruling elite do not like the Internet's present ability to bypass the controlled media and reach the people directly. However, I do not think it is correct to say they are not prepared. They have known almost from its inception that the Internet will need to be controlled by them if they are to keep the masses dumbed down. That is why we constantly have been conditioned to accept Internet content regulation supposedly as a means of preventing terrorism, crime, child pornography, drug traffic, and just about anything else that the public dreads. The real objective is control for its own sake. They already have this censorship of the Internet in China and numerous other Asian countries. The next step in this evolution is to put the UN in ultimate control of the Internet. If we allow this type of control to be established, the Internet will no longer be a tool of enlightenment but one of suppression.
Daily Bell: Dr. Ron Paul, the popular free-market Congressman from Texas, has suggested that if the US does not make changes now, albeit painful ones, towards an honest money system that the country faces an inflationary financial crisis that makes the inflationary period of the Carter era look like a warm up act. Do you agree with that and that rampant inflation will undoubtedly revisit America's shores as a result of all of these bailouts and stimulus programs?
G. Edward Griffin: Yes I do. The collectivists who run the Fed and dominate our government do not believe in free-market solutions to any problem, least of all, those of such magnitude as money and banking. They know only one trick: inflate the money supply. So, as long as collectivists dominate our power centers, I see no way to avoid inflation. However, I must add that we need to look at more than the money issue. The freedom issue is just as important, if not more so. While inflation ramps up and while the government is pushing more and more newly created money into the system, parallel to that we are witnessing a tremendous loss of personal freedom. If the government funds a bank, eventually the government will own the bank. If the government funds a manufacturing company, eventually the government will own the company. If the government funds a homeowner's mortgage, eventually the government will own the house. If the government funds a person's food, shelter, health care, transportation, and education, eventually the government will own that person.
My biggest concern is that, in the name of purchasing financial security, people are paying with their freedom - and they're not getting security either.
Daily Bell: We've heard it argued that 40% of the world's wealth has been wiped out in the deleveraging phase of this economic collapse and that inflation is unlikely to happen as a result. How do you answer those folks?
G. Edward Griffin: We need to define terms. Fiat money (the kind without precious-metal backing) is not wealth. It can be called wealth or capital or whatever you want to call it; but, true wealth is measured in terms of tangible assets with intrinsic value, which means they have characteristics that give them value even if they were not used as money. Gold or silver as money, therefore, has the advantage of being money and wealth at the same time.
Money with only the promise and threat of governments to back them up is not wealth. This means that the 40% of the economy that has disappeared never existed as wealth in the first place. It was only fools wealth. People who had all those digits in their banking accounts thought they were wealthy when they were not. True, during the boom cycle, they could have spent those digits for houses, cars, boats, and airplanes (or gold) and could have acquired wealth in that fashion. Those things did not disappear in the last 6 months. The only things that disappeared were digits in a computer, which represented fiat money.
If you had $1 million in gold a year ago, you would have had $1 million in wealth a year ago and about the same amount today. However, if you had $1 million in fiat money a year ago, you would have had no wealth a year ago and the same amount today: zero. Only when you possess tangible assets do you have wealth. That's one of the beauties of a gold or silver-backed currency. When you hold that type of currency you actually do have wealth. Unless we are talking about assets that are subject to destruction (such as timber that can be destroyed by fire) wealth never just disappears.
Regardless of this definition, I feel that deflation will continue for a little while longer as most of the fiat bubbles are wiped out and prices return to a fair-market balance between price and value but, what will follow will be a new, even larger bubble based on the incredible amounts of fiat money now being pumped into the system. As long as collectivists are running the show, we will have inflation and will continue to build totalitarian governments everywhere.
Daily Bell: How about the pundits who tell us that General Motors, AIG, Citigroup and others are too big to fail? Do you agree with that?
G. Edward Griffin: This may begin to sound like a broken record, but as long as collectivists are in charge of governments and monetary systems, we will continue down exactly the same track we have been following. That means the corporations will be maintained at the expense of taxpayers. Are they too big to fail? Of course not. That is merely a slogan to end the debate. However, I might rephrase the statement. Corporations, with their present influence over Congressmen, are too corrupt to fail.
Daily Bell: What about the over-leveraged American home-owners who can no longer afford to make their mortgage payments? Shouldn't US taxpayers be expected to help them out? Don't people have a right to own their own home?
G. Edward Griffin: It would take more time to adequately answer that question than we have; so, at the risk of sounding too harsh and inconsiderate of my fellow humans, I must give the short answer. The proper function of government is to protect the lives, liberty, and property of its citizens. Nothing more. Acts of charity are very important but must be kept away from government. Otherwise every scheme and scam would be perpetuated through under the guise of helping some unfortunate individual or class of citizens. The class of citizens called taxpayers should not be expected to help the class of citizens called homebuyers with distressed mortgages. People do not have a right to force me or anyone else through taxation to give them a home.
If anyone finds that to be uncharitable, I urge them to examine the more complete defense of this point of view as posted to the Freedom Force web site: http://www.freedomforceinternational.org/freedom.cfm?fuseaction=creed.
Daily Bell: It seems safe to say that you do not think any of the current bailout and stimulus solutions being offered by Bernanke, Geithner or Obama have any hope of stabilizing the banking industry and that they are they simply ignoring the problem and pouring more fuel on a burning victim?
G. Edward Griffin: I like your analogy of pouring more fuel on a burning victim. That's it exactly.
Daily Bell: Would you agree that the only way to get out of this current crisis and to prevent future ones is to abolish the central banking cartel and privatize the issuance of currency? And further to that point, do you think an Honest Money system, one anchored by gold or silver, or both, would be the best way to anchor confidence in the US dollar?
G. Edward Griffin: I definitely think the banking cartel called the Federal Reserve System should be abolished, but I will take that one step further. Some critics of the Fed are calling for its abolishment as a private institution but that it be empowered to continue performing its function as an agency of the government. They want to take this power away from those big, bad bankers and give it to those nice, trustworthy politicians. That is such a foolish concept. The problem is not who creates money out of nothing but that anyone does it. The politicians and bankers have a tight partnership. It would continue exactly the same whether operated as is or under the theoretical supervision of the Treasury. Does anyone really think that any of the last ten Secretaries of the Treasury would change anything?
So, I am for the abolishment of the Fed, not a change in appearance.
Privatizing the currency is another issue. I do not advocate this nor do I oppose it. I believe what I preach, and I preach freedom-of-choice so long as government does not give competitive advantage one way or the other and so long as all players are required to honor their contracts. Under those conditions, it would be appropriate for the government to issue its own gold or silver-backed currency provided there is no legal-tender law to force citizens to accept it. If the currency is sound, people will accept it without coercion of law. If it is not sound and there is public dissatisfaction with it, privately-issued currencies would spring up and, if they were solidly backed by gold or silver, people would use them in preference to government money. If we just remove the element of coercion, the best money eventually would become the nation's money.
Daily Bell: What are your thoughts on gold backed money versus a bimetallic standard of both gold and silver. Which do you prefer and why?
G. Edward Griffin: Anyone interested in this question probably already is familiar with the history of money, particularly in the United States, where both gold and silver were simultaneously used for backing government currency. This was awkward, as one can imagine but, as long as the free-market value of gold and silver were left alone, the ratio between the two metals remained amazingly constant for long periods of time, and the system worked without hardship to anyone. Then, as the ratios between the metals began to change, the system began to break down leading to a defacto single standard.
My preference would be a single-metal standard. Should it be gold or silver? My preference would be gold, but I must add that, if the public wants silver, that would be fine with me. The important thing is that one or the other must be settled on if we ever hope to return to sound money.
Daily Bell: As an aside, the press coverage of the recent Madoff scandal was focused on the issue of Wall Street greed - most media coverage anyway. But in its essence, isn't the Madoff Ponzi scheme similar to the Federal Reserve's scheme? Don't they both rely on an increasing base of demand for their obligations in order for the house of cards to stay erect?
G. Edward Griffin: That is a common view among critics of the FED. In fact, I carried a cartoon to that effect in our weekly Internet news service called Unfiltered News. (A free subscription is available: http://www.realityzone.com/ourcrusade.html. The current edition can be viewed here: http://www.realityzone.com/current.) While it is true that the Fed constantly expands the money supply and its customer base of interest-paying customers, that is not an intrinsic characteristic. Theoretically, the system could stop expanding or actually contract to some extent and still operate as it has. The Fed could plunder the public at a constant rate without accelerating if it chose to do so. A Ponzi Scheme has no choice. It must expand or collapse. Technically, therefore, the Ponzi analogy is not entirely accurate. In practice, however, it is very accurate.
Daily Bell: Ok, so we've established that the mainstream media and the elite who control both it and the Federal Reserve are continuing down a road that's been traveled before. One, as most Germans and Austrians will tell you, doesn't end very nicely. So what can anyone do about it?
G. Edward Griffin: Nothing! OK, have I shocked you? What I mean is that, so long as collectivists continue to control our government and our monetary system, there is nothing we can do, because they hold the power to make change, which is the same power to prevent change. It is an exercise in futility to talk about what should be done when those who have the ability to do it are determined not to do it. It may be useful for those of us who are trying to mobilize public awareness to discuss and analyze the necessary components of reform, but we know well that the powers in Washington will, not only ignore our arguments, but will do everything possible to silence our voices.
The reason we formed Freedom Force International was to address this very issue. If, in addition to seeking an understanding of the problem and in addition to drafting a workable solution to the problem, we also unite to recapture control of the power centers of society (including but not limited to political parties) only then will we acquire the power to bring about reform. We have a slogan in freedom Force that sums it up: Don't fight City Hall. Become City Hall.
Daily Bell: Your suggestion that people accept personal responsibility for their future and to employ human action to protect their family's future is one we certainly endorse. Should people who own gold be concerned we may once again see a 1933 style confiscation? After all, Barack Obama is being compared to FDR?
G. Edward Griffin: That is a real possibility. The power elite will stop at nothing to perpetuate and expand their control over all of us. Our only defense is to work together, to unite, to develop a strategy, and then work like crazy to become City Hall.
Daily Bell: We are very concerned to see America moving further and further away from a freedom-loving nation to one that is rapidly looking more and more like a police state. Where does it all end?
G. Edward Griffin: One thing is certain. It will not stay as it is. It is constantly moving. Right now, the movement is in the wrong direction. We are headed directly for totalitarianism. Unless something changes, that is where we are going to be. I'll say it again, that is what motivates us in Freedom Force. This is no idle philosophical discussion. Our lives and those of our children are on the line right now.
Daily Bell: Tell us a little bit more about Freedom Force International, the non-profit organization you referenced earlier in this interview. When did you launch Freedom Force and how is it making a difference today?
G. Edward Griffin: Freedom Force International was founded on December 12, 2002. I launched the organization with the vision that, someday, our members all around the world would become leaders in their respective countries on behalf of sound money and personal freedom. We have a long way to go, of course, but we are under way. Already we have members in over sixty countries.
Our members are not mere complainers. They have a plan to do something about it. They also share a common belief in The Creed of Freedom, which is a statement of principles that guide them in their mission to build a better world.
We are determined to influence the political direction of the world by becoming influential in the power centers of our respective countries. The most obvious of those are political parties, but we also know the importance of the media and the educational system. Most power centers are comprised of large numbers of people who follow small numbers of people. It is the mission of Freedom Force members to become influential within the small groups that lead.
Another mission of Freedom Force is to provide an ideological umbrella under which many patriotic groups can unite toward a common goal. By unite, I do not mean one organization but many organizations, each with their special purpose, style, and leadership, but united under the ideological principles expressed in The Creed of Freedom. It's very important to know what you are for as well as what you are against.
Freedom Force already has become a significant movement. Anyone who really wants to make a difference on behalf of sound money and personal freedom will want to become part of this international brotherhood.
Daily Bell: Where can one go if they wish to find out more about Freedom Force International and to consider adding their voice to this growing movement of liberty minded people?
G. Edward Griffin: The web site is http://www.freedom-force.org/. There is a lot of information there, but it is not expected that anyone will read it all at one sitting, although that sometimes happens. It is structured so that the most important information appears first with sub categories available for drilling down into many areas of interest. Freedom Force is the answer.
Daily Bell: One final question, Jim Rogers, Peter Schiff and many other outspoken free-market thinkers have suggested gold could rise to $2,000 per ounce or even much higher. Do you think this is likely to happen as more and more people awaken to the truth about our current monetary system and as inflation rears its ugly head? Do you have your own prediction? G. Edward Griffin: I think $2000 per ounce is very realistic in view of the run-away money creation machine we have been discussing. However, I must remind newcomers to this topic that purchasing gold and silver should be viewed primarily as insurance, not investment. Even if the price of gold should rise to astronomical levels, the price of everything else also will be rising at about the same rate. If the price of a loaf of bread becomes twice what it is today, then the price of gold at twice what it is today will not seem to be particularly shocking. The value of holding precious metals in time of inflation is not that you will increase your purchasing power but that you will not lose purchasing power. You will hold your own while those who do not own gold or silver or other tangible assets will have their savings wiped out.
Daily Bell: Thank you so much for taking the time to share you wisdom with us. We wish you all the best in your future endeavors.
G. Edward Griffin: Thank you for the opportunity. I hope this will be of value to your readers.
This interview was conducted by Scott Smith.
Meet Scott Smith: Before his recent retirement, American-born Scott Smith spent nearly 30 years as a member of the Swiss investment banking community. He spent most of his long career at legendary investment banking giant Credit Suisse, where he was an executive working in the foreign exchange and derivatives departments.
Over the course of his career, Scott became privy to the closely guarded, somewhat regimented, wealth building and asset-protection strategies that have made the Swiss among the wealthiest people in the world - wealthier than Americans, according to the World Bank.
In addition to writing special reports, such as this Swiss Perspective, Scott is also a contributing editor to TheDailyBell.com and the editor of a membership based investment newsletter called Swiss Confidential.
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President & Congress Grovel Before the FedBy Chuck Baldwin
February 10, 2009
NewsWithViews.com
http://www.newswithviews.com/baldwin/baldwin491.htm
According to Bloomberg News (Monday, February 9, 2009), "The stimulus package the U.S. Congress is completing would raise the government's commitment to solving the financial crisis to $9.7 trillion, enough to pay off more than 90 percent of the nation's home mortgages.
"The Federal Reserve, Treasury Department and Federal Deposit Insurance Corporation have lent or spent almost $3 trillion over the past two years and pledged up to $5.7 trillion more. The Senate is to vote this week on an economic-stimulus measure of at least $780 billion. It would need to be reconciled with an $819 billion plan the House approved last month.
"Only the stimulus bill to be approved this week, the $700 billion Troubled Asset Relief Program passed four months ago and $168 billion in tax cuts and rebates enacted in 2008 have been voted on by lawmakers. The remaining $8 trillion is in lending programs and guarantees, almost all under the Fed and FDIC. Recipients' Names have Not Been Disclosed. [Emphasis added]
"'We've seen money go out the back door of this government unlike any time in the history of our country,' Senator Byron Dorgan, a North Dakota Democrat, said on the Senate floor Feb. 3. 'Nobody knows what went out of the Federal Reserve Board, to whom and for what purpose. How much from the FDIC? How much from TARP? When? Why?'"
Senator Dorgan is exactly right. No one oversees the Fed. The Fed is held accountable to absolutely nobody. But Senator Dorgan (as with everyone else in Congress) has no one to blame but himself. Ever since the Marxist, E. Mandell House, convinced President Woodrow Wilson to create the Federal Reserve in 1913, the Congress of the United States has had virtually nothing to do with the way our fiscal policies are managed. The Fed (which is not even a government agency, but rather a private corporation consisting of mostly foreign bankers) dictates America's financial policies.
The reality of just how our civil magistrates have come to grovel before the Fed was revealed in a column written recently by Cal Thomas. Mind you, Cal was not trying to castigate President Bush in his column. Just the opposite: his column was full of praise and adulation for the former President. In recounting his last interview with President George W. Bush, however, Cal unwittingly revealed the almost limitless power that the Fed wields over even the President of the United States.
Here is what Cal wrote: "Bush defends himself against a charge by a member of the Republican National Committee that he has behaved like a 'socialist' because of his massive bailout spending. He [Bush] says he still believes in less government spending, but when Henry Paulson, secretary of the U.S. Treasury, and Ben Bernanke, chairman of the Federal Reserve, tell him that if he doesn't act, the result will be worse that the Great Depression, 'you can sit there and say to yourself, "well, I'm going to stick to principle and hope for the best, or I'm going to take the actions necessary to prevent the worst."'"
In other words, when the Fed says, "Jump!" the President asks, "How high?" And, with the exception of Congressman Ron Paul of Texas (and maybe one or two others), the same is true for members of the House and Senate.
In other words, ladies and gentlemen, America is being run by a private banking cartel, the majority of whom are not even citizens of these United States.
Ever since the Fed was created in 1913, America has been subjected to recession after recession, not to mention one Great Depression. Some are even predicting that the United States is now actually entering a second Great Depression. Please understand this: the Federal Reserve has manipulated every bit of this financial crisis for the express purpose of enriching the international bankers on the backs (and bankruptcies) of the American taxpayers. And what does our illustrious Congress do? They continue to give billions and even trillions of taxpayer dollars to the very same group of gangsters who created and perpetuate this financial fraud. And, as with Congress, Presidents from both major parties likewise promote and defend this chicanery.
Yet, the U.S. Constitution, in Article. I. Section. 8. Paragraph. 5., clearly gives Congress the authority "To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures."
This constitutional requirement makes two obvious demands: 1) only the elected Congress, not some private foreign (or even domestic) banking interest, has the power to make monetary policy, 2) U.S. currency must be hard currency, i.e. gold and silver. Paper money--known as the Federal Reserve Notes--is not even legal tender under the U.S. Constitution.
In truth, the Federal Reserve Act of 1913 is itself unconstitutional. In simple terms, the Act did not amend or expunge Article. I. Section. 8. Paragraph. 5. of the Constitution; it merely ignored it. (And Congresses and Presidents have been ignoring the Constitution ever since.)
In fact, Article. I. Section. 10. Paragraph 1. of the U.S. Constitution specifically states, "No State shall . . . coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts."
Can anyone not see that the Federal Reserve is an illegitimate system? I will even go so far as to say that the Federal Reserve should be regarded as a corrupt, criminal system! If I were President, not only would I do everything in my power to oppose any and all financial bailouts to these international banksters, I would instruct the Justice Department to pursue criminal charges of fraud, corruption, manipulation, and outright thievery against the Fed. Instead of padding their fat assets in a million-dollar penthouse, they should be serving most of the rest of their lives in the Big House.
Even the man who created the Federal Reserve, President Woodrow Wilson, later admitted the gravity of his sin. Years after signing the Federal Reserve Act into law, Wilson was quoted by Senator Robert Owen, Former Chairman, Committee on Banking and Currency (who was, himself, the chief sponsor of the Federal Reserve Act in the Senate, but who later vehemently repudiated it), as saying, "A great industrial nation is controlled by its system of credit. Our system is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world--no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of small groups of dominant men."
Obviously, Wilson's (and Owen's) recantation was too little, too late. He created the monster that is eating our country alive--even up to this very moment.
In the meantime, Congressman Ron Paul has again introduced a bill in the House of Representatives to terminate the Federal Reserve. It is H.R. 833: To abolish the Board of Governors of the Federal Reserve System and the Federal reserve banks. The Bill was introduced on February 3 and, to date, has no cosponsors. That's right. No cosponsors.
Until the American people demand that their elected members of Congress live up to their duties and responsibilities under the Constitution, they will continue to have their pockets picked clean by these corrupt banksters in New York City (and London) and their contemptible facilitators in Washington, D.C. Passing Dr. Paul's bill would be a great place to start.
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End of 2007 ... check out the numbers in the next article.

December 28, 2007
Fed Increases Lending to BanksBy REUTERS
http://www.nytimes.com/2007/12/28/business/28bank.html?_r=2&partner=MYWAY&pagewanted=print&oref=slogin&oref=slogin
United States banks on average borrowed $4.83 billion a day directly from the Federal Reserve in the week ended Dec. 26, up from $4.62 billion a day the previous week, Fed data released Thursday showed.
Discount window borrowing totaled $4.54 billion on Wednesday, compared with $4.77 billion a week earlier, according to the Fed.
In addition, the Fed said that banks in the New York area received $16.49 billion of the $20 billion in 28-day loans awarded in its first auction from its Term Auction Facility, which was established this month to ease the global credit squeeze.
Banks in the Dallas Fed district were awarded the second-highest amount, $1.4 billion, from the auction of 28-day loans, which was held Dec. 17, the Fed said.
Banks in the St. Louis Fed district received $1 billion, the third-highest amount.
Banks in 6 of the 12 Fed districts receive no money from the auction, which settled Dec. 20.

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The Federal Reserve: Fraud of the Century: http://shop.wnd.com/store/item.asp?ITEM_ID=1889 While millions of Americans look with awe to the Federal Reserve to protect the nation's financial well being, millions more mistrust the Fed, seeing it as an unaccountable, private banking cartel siphoning off citizens' wealth and manipulating America's economy for the benefit of a hidden elite. Where does the truth lie?

Banking/Federal Reserve System: By far, the single greatest sleight-of-hand scam ever perpetrated on the American People!! http://www.freedomdomain.com/bankfed.htm Hey, I've got an idea. I'm going to open up a bank and force everyone to use my paper currency. If I can get everyone to borrow the paper from me, all I have to do is make sure I never run out of trees and I can sit back and collect the interest from now 'til eternity. But first, i'll have to invent a scheme to get everyone to stop using Real Money, Gold and Silver. I know, being that I'm the banker and everyone already trusts me with their Gold and Silver, i'll start off by printing Gold and Silver certificates that people can carry around instead of the metals, after all, metals are heavy and people can get robbed. Next, over a long period of time, say 20 years, i'll replace the certificates with federal reserve notes (completely worthless). I'll be rich and America will be bankrupt!!

Conspiracy, Fraud, Unlawful Conversion, and Treason: http://www.freedomdomain.com/redemption/mcfadden1.html The Honorable Louis T. McFadden, due to his having served as Chairman of the Banking and Currency Committee for more than 10 years, was the best posted man on these matters in America and was in a position to speak with authority of the vast ramifications of this gigantic private credit monopoly. One of his quotes: "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, hereinafter called the Fed. The Fed has cheated the Government of these United States and the people of the United States out of enough money to pay the Nation's debt. The depredations and iniquities of the Fed has cost enough money to pay the National debt several times over."

Debunking the Federal Reserve Conspiracy Theories by Edward Flaherty, Ph.D. Department of Economics College of Charleston, S.C. http://www.geocities.com/CapitolHill/Embassy/1154/flaherty.html Yes, the Federal Reserve banks are privately owned, but they are controlled by the publically-appointed Board of Governors. The Federal Reserve banks merely execute the monetary policy choices made by the Board. In addition, nearly all the interest the Federal Reserve collects on government bonds is rebated to the Treasury each year, so the government does not pay any net interest to the Fed. [That is one fact. Flaherty lays out more facts and then presents nine myths about the Federal Reserve Bank. He definitely presents the other side of the coin in regards to conspiracy theory. Where does the truth lie? - Ralph Deline]

The Federal Reserve Conspiracy by the Editorial Staff of the American Institute for Economic Research: http://www.cooperativeindividualism.org/aier_on_conspiracy_04.html Long-time followers of our work will know that our research suggests that today's grave monetary and economic problems are largely attributable to actions taken since the founding of the Federal Reserve System. We also have declared many times that leading private bankers have used their great influence with central bankers and politicians to obtain adoption of monetary policies and banking laws that were in the bankers' immediate interest but against the long-run public interest and that of the bankers, too.

Conspiracy theories and the Federal Reserve Bank: http://www.chaosmagnet.com/blog/archives/000215.html Well, apparently this is a pretty popular conspiracy theory, 'cause there are lots and lots of pages talking about it. Of course, most of them repeat the same under-researched "facts" verbatim. And that, gentle reader, is why I hesitate to believe these things until I check them out myself. What I've found is that the conspiracy theorists are right. And they're wrong. But there is one disturbing fact that can't be escaped. There is simply not enough currency in existance to pay off the National Debt. Period. This is because of the whole "reserve" system. I take $20 and put it in the bank, and the bank lends out $120. The borrowers deposit that $120 and the bank lends out $720. From my $20, the economy suddenly has $860 -- on paper. Similarly, we have a $4 trillion national debt (in 1992 -- I have no idea what it is now) and only $263 billion in actual paper currency. Not good. Something will have to be done. But I don't know what.

Why We Should Fear Zionism More Than Islam by Rev. Ted Pike http://www.rense.com/general77/zovislam.htm In 1913, as a result of the most concentrated lobbying efforts by international Jewish bankers and their American representative, J.P. Morgan, Congress created the Federal Reserve System. Today, the Fed is owned not by the federal government and the American people but by a consortium of primarily European Jewish banking houses, members of whom also financed the Bolshevik revolution and Hitler. They control the money system in the United States, just as they have in Europe.

The Federal Reserve
http://www.populistamerica.com/federal_reserve#1

Article I, Section 8, Clause 5, of the United States Constitution provides that Congress shall have the power to coin money and regulate the value thereof and of any foreign coins. But that is not the case. The United States government has no power to issue money, control the flow of money, or to even distribute it - that belongs to a private corporation registered in the State of Delaware - the Federal Reserve Bank.

Read these Articles about the Federal Reserve Bank:Outing the Constitutional Criminals
How the Federal Reserve Runs the US - Part 1
How the Federal Reserve Runs the US - Part 2
How the Federal Reserve Runs the US - Part 3
How the Federal Reserve Runs the US - Part 4
How the Federal Reserve Runs the US - Part 5
We're Going to Have to Break the Bank
The Fed: Jekyll Island Monster
Paper Money and Tyranny

The Federal Reserve Act: Final Warning: A History of the New World Order: http://www.the7thfire.com/new_world_order/final_warning/federal_reserve_act.htm "Lenin is to have declared that the best way to destroy the capitalist system was to debauch the currency ... By a continuing process of inflation, governments can confiscate secretly and unobserved, an important part of the wealth of their citizens ... As the inflation proceeds and the real value of the currency fluctuates wildly from month to month, all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless..."

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On 4 June 1963, President Kennedy signed Executive Order, No. 11110 that would virtually strip the privately owned Federal Reserve of its power and return the authority to issue currency, which would be backed by silver, to the Federal government. Five months later Kennedy was assassinated. Still valid today, no other president has ever applied that order.
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Congressman McFadden on the Federal Reserve Corporation Remarks in Congress, 1934 http://home.hiwaay.net/~becraft/mcfadden.html

Quotations from several speeches made on the Floor of the House of Representatives by the Honorable Louis T. McFadden of Pennsylvania. Mr. McFadden, due to his having served as Chairman of the Banking and Currency Committee for more than 10 years, was the best posted man on these matters in America and was in a position to speak with authority of the vast ramifications of this gigantic private credit monopoly. As Representative of a State which was among the first to declare its freedom from foreign money tyrants it is fitting that Pennsylvania, the cradle of liberty, be again given the credit for producing a son that was not afraid to hurl defiance in the face of the money-bund. Whereas Mr. McFadden was elected to the high office on both the Democratic and Republican tickets, there can be no accusation of partisanship lodged against him. Because these speeches are set out in full in the Congressional Record, they carry weight that no amount of condemnation on the part of private individuals could hope to carry.
The Federal Reserve-A Corrupt Institution
"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, hereinafter called the Fed. The Fed has cheated the Government of these United States and the people of the United States out of enough money to pay the Nation's debt. The depredations and iniquities of the Fed has cost enough money to pay the National debt several times over.
"This evil institution has impoverished and ruined the people of these United States, has bankrupted itself, and has practically bankrupted our Government. It has done this through the defects of the law under which it operates, through the maladministration of that law by the Fed and through the corrupt practices of the moneyed vultures who control it.
"Some people who think that the Federal Reserve Banks United States Government institutions. They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lender. In that dark crew of financial pirates there are those who would cut a man's throat to get a dollar out of his pocket; there are those who send money into states to buy votes to control our legislatures; there are those who maintain International propaganda for the purpose of deceiving us into granting of new concessions which will permit them to cover up their past misdeeds and set again in motion their gigantic train of crime.
"These twelve private credit monopolies were deceitfully and disloyally foisted upon this Country by the bankers who came here from Europe and repaid us our hospitality by undermining our American institutions. Those bankers took money out of this Country to finance Japan in a war against Russia. They created a reign of terror in Russia with our money in order to help that war along. They instigated the separate peace between Germany and Russia, and thus drove a wedge between the allies in World War. They financed Trotsky's passage from New York to Russia so that he might assist in the destruction of the Russian Empire. They fomented and instigated the Russian Revolution, and placed a large fund of American dollars at Trotsky's disposal in one of their branch banks in Sweden so that through him Russian homes might be thoroughly broken up and Russian children flung far and wide from their natural protectors. They have since begun breaking up of American homes and the dispersal of American children. "Mr. Chairman, there should be no partisanship in matters concerning banking and currency affairs in this Country, and I do not speak with any.
"In 1912 the National Monetary Association, under the chairmanship of the late Senator Nelson W. Aldrich, made a report and presented a vicious bill called the National Reserve Association bill. This bill is usually spoken of as the Aldrich bill. Senator Aldrich did not write the Aldrich bill. He was the tool, if not the accomplice, of the European bankers who for nearly twenty years had been scheming to set up a central bank in this Country and who in 1912 has spent and were continuing to spend vast sums of money to accomplish their purpose.
"We were opposed to the Aldrich plan for a central bank. The men who rule the Democratic Party then promised the people that if they were returned to power there would be no central bank established here while they held the reigns of government. Thirteen months later that promise was broken, and the Wilson administration, under the tutelage of those sinister Wall Street figures who stood behind Colonel House, established here in our free Country the worm-eaten monarchical institution of the "King's Bank" to control us from the top downward, and from the cradle to the grave.
"The Federal Reserve Bank destroyed our old and characteristic way of doing business. It discriminated against our 1-name commercial paper, the finest in the world, and it set up the antiquated 2-name paper, which is the present curse of this Country and which wrecked every country which has ever given it scope; it fastened down upon the Country the very tyranny from which the framers of the Constitution sough to save us.
The Great Depression
"Meanwhile and on account of it, we ourselves are in the midst of the greatest depression we have ever known. From the Atlantic to the Pacific, our Country has been ravaged and laid waste by the evil practices of the Fed and the interests which control them. At no time in our history, has the general welfare of the people been at a lower level or the minds of the people so full of despair.
"Recently in one of our States, 60,000 dwelling houses and farms were brought under the hammer in a single day. 71,000 houses and farms in Oakland County, Michigan, were sold and their erstwhile owners dispossessed. The people who have thus been driven out are the wastage of the Fed. They are the victims of the Fed. Their children are the new slaves of the auction blocks in the revival of the institution of human slavery.
The Scheme of the Fed
"In 1913, before the Senate Banking and Currency Committee, Mr. Alexander Lassen made the following statement: "The whole scheme of the Fed with its commercial paper is an impractical, cumbersome machinery- is simply a cover to secure the privilege of issuing money, and to evade payment of as much tax upon circulation as possible and then control the issue and maintain, instead of reducing interest rates. It will prove to the advantage of the few and the detriment of the people. It will mean continued shortage of actual money and further extension of credits, for when there is a shortage of money people have to borrow to their cost.' "A few days before the Fed passed, Senator Root denounced the Fed as an outrage on our liberties. He predicted: 'Long before we wake up from our dream of prosperity through an inflated currency, our gold- which alone could have kept us from catastrophe- will have vanished and no rate of interest will tempt it to return.'
"If ever a prophecy came true, that one did.
"The Fed became law the day before Christmas Eve, in the year 1913, and shortly afterwards, the German International bankers, Kuhn, Loeb and Co. sent one of their partners here to run it.
"The Fed Note is essentially unsound. It is the worst currency and the most dangerous that this Country has ever known. When the proponents of the act saw that the Democratic doctrine would not permit them to let the proposed banks issue the new currency as bank notes, they should have stopped at that. They should not have foisted that kind of currency, namely, an asset currency, on the United States Government. They should not have made the Government [liable on the private] debts of individuals and corporations, and, least of all, on the private debts of foreigners. "As Kemerer says: 'The Fed Notes, therefore, in form, have some of the qualities of Government paper money, but in substance, are almost a pure asset currency possessing a Government guarantee against which contingency the Government has made no provision whatever.'
"Hon. L.J.Hill, a former member of the House, said, and truly: "They are obligations of the Government for which the United States received nothing and for the payment of which at any time, it assumes the responsibility: looking to the Fed to recoup itself.'
"If this United States is to redeem the Fed Notes, when the General Public finds it costs to deliver this paper to the Fed, and if the Government has made no provisions for redeeming them, the first element of unsoundness is not far to seek.
"Before the Banking and Currency Committee, when the bill was under discussion Mr. Crozier of Cincinnati said: 'The imperial power of elasticity of the public currency is wielded exclusively by the central corporations owned by the banks. This is a life and death power over all local banks and all business. It can be used to create or destroy prosperity, to ward off or cause stringencies and panics. By making money artificially scarce, interest rates throughout the Country can be arbitrarily raised and the bank tax on all business and cost of living increased for the profit of the banks owning these regional central banks, and without the slightest benefit to the people. The 12 Corporations together cover y and monopolize and use for private gain- every dollar of the public currency and all public revenue of the United States. Not a dollar can be put into circulation among the people by their Government, without the consent of and on terms fixed by these 12 private money trusts.'
"In defiance of this and all other warnings, the proponents of the Fed created the 12 private credit corporations and gave them an absolute monopoly of the currency of these United States- not of the Fed Notes alone- but of all other currency! The Fed Act providing ways and means by which the gold and general currency in the hands of the American people could be obtained by the Fed in exchange for Fed Notes- which are not money- but mere promises to pay.
"Since the evil day when this was done, the initial monopoly has been extended by vicious amendments to the Fed and by the unlawful and treasonable practices of the Fed. [Read entire article at: http://home.hiwaay.net/~becraft/mcfadden.html]
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The United States of Fiat Money and the Federal Reserve SystemBy: Darryl R Schoon
Jun 23, 2008
http://www.marketoracle.co.uk/Article5176.html
Fiat money is an oxymoron. Traditionally, money has been both a storehouse of value and a medium of exchange. Fiat money exists by mimicking both; but when its ability to do so ends, fiat money exposed for what it is, reverts to what it is—government issued coupons with expiration dates printed in invisible ink .
Fiat money distorts the time value of money and in so doing destroys both money and the economies that use it. Real money like gold and silver has value over time, the greater its value and the longer it endures, the more likely it will be accepted as money.
Throughout history, gold and silver have demonstrated such utility and as a consequence both have been used as money for thousands of years. Unfortunately, throughout history governments have either debased, sic diluted, the amount of gold and silver in their coins or attempted to circumvent gold and silver entirely by mandating the use of paper money, sic fiat.
This is why:
Wealth, e.g. money, is power in a stored state. Unleashed, wealth is capable of doing its possessors' bidding for better or worse. Wealth can exacerbate suffering or alleviate it and its power to do both— usually the former—has been coveted by governments since governments existed.
While productivity is doing more with less, fiat money allows governments to do more with nothing. Fiat currencies are a way for governments to spend what they don't have; and while counterfeiting by individuals is a crime, passing government coupons off as money is legal because governments make the laws.
Whose Laws Whose BenefitThe issuance of fiat money by governments is, in truth, a white collar crime; and, as happens when white collar crimes are discovered, a highly visible paper trail leads directly back to the wrongdoers—in this case, the central banks.
Central banks are the mechanism by which society's productivity is drained and indebted. Credit-based money issued by central banks turns into debt, debt which immediately begins to accrue compounding interest paid by productive members of society, e.g. workers, businessmen, farmers, savers and taxpayers. The interest, of course, is paid to bankers, non-productive members of society.
The motives for the co-conspirators in this crime are different but equally fulfilling. Governments get to spend what they don't have and bankers get to collect interest on money that is not theirs—a win/win for the governments and bankers and a lose/lose for citizens and savers.
Fiat Money is a Cancer on the Economic BodyThe longer a fiat money system exists, the greater the odds of economic collapse. Over time fiat credit money destroys economies because time exacerbates the systemic flaws of credit-based, sic capital, markets.
Capital is but the polite word for credit and that is why it is used. Capitalism sounds so much better (and more like money) than creditism . The word capital implies a “moneyness” that does not exist.
Credit turns into debt and over time in fiat money systems the growth of debt overwhelms the ability of producers and savers to service it. This is why debt markets, e.g. bond markets, are now so much larger than equity markets and why defaults involve increasingly larger and larger amounts. In the current fiat money system, time is running out.
Compounding Debt + Time = Increasing DefaultsTime also contributes to the destruction of the “value” of fiat money. The continual issuance of fiat credit money expands the amount of fiat “money” in circulation and thereby lowers the value of all previously issued currency.
This is why savers are penalized in fiat credit based economies. Savings, measured in terms of constantly declining dollars, are worth less over time. In the 95 years since the creation of credit based money by the Federal Reserve, the US dollar has lost 95 % of its purchasing power.
In fiat credit-based economies, savers are penalized and speculators are rewarded. And while this is welcomed by Wall Street, it is a death warrant for Main Street . In the US over the past twenty years, while Wall Street has expanded, Main Street has contracted.
The shift in America from a productive to a speculative economy is evidenced by the recent growth and dominance of financial “services” companies, e.g. Goldman Sachs, JP Morgan Chase, BofA, Morgan Stanley, Lehman Bros, Wachovia, etc. —their only “service”, of course, is a uniquely destructive and deadly form of “self-service”.
Over time, parasites will kill the body on which they live and this can be seen in the current decline of the United States . The decline of America was not caused by outside forces, e.g. communism, terrorism, illegal immigration, currency manipulation or product dumping as the US corporate controlled media would have Americans believe. The decline of America was an inside job.
The collapse of the US came from within. In 1913, the US replaced its savings based currency with fiat debt-based money issued by the Federal Reserve System, a consortium of European and US private banks whose intent was to profit from the growing productivity of America—and profit they did but to the detriment of America.
Since 1913, the Federal Reserve System has helped Wall Street bankers leach and indebt the productivity of American businesses and workers until America is now but a shadow of its former self. As the fortunes of Wall Streets rose, America 's fortunes declined.
The Fiat Money 3-StepCredit (step forward) Debt (stumble) Default (fall)It's been 95 years since the Federal Reserve System and its credit based money took over the US economy. Now, the United States , once the world's only creditor is by far its largest debtor. A report from the Federal Reserve in 2006 stated the US is technically bankrupt with $65.9 trillion in irreconcilable obligations. Currently, the US can only pay its debts by issuing new debt. Default comes next.
The US Centennial Celebration of Fiat Money
In 2013, in only five years the Federal Reserve System will celebrate its 100th birthday in America , the celebration of 100 years of bankers, financiers and corporate CEOs dismantling the productivity of America for personal gain.
It is my belief the next five years will determine America 's destiny. Once seen as a beacon, it is now distrusted and feared and rightly so. Those who bled this nation dry are still in control and the American people, America 's only hope, are not even aware of what has happened; and, if America is to be saved, there is not much time left in which to do so.
The odds aren't good and Americans, heavily indebted and addicted to credit, are still hoping the Federal Reserve can save them, much as a patient hopes doctors will provide the right medicines, not knowing the doctors are getting kickbacks from the pharmaceutical companies and are skimming prescriptions for their own benefit.
In fiat based economies, time is the enemy and 95 years have passed since fiat money was introduced into the US . In America and elsewhere time is passing and the clock is ticking and recently it's been sounding more and more like a time bomb.
It is hoped the election of a new president will save America . It won't. Democracy, once the hope of the world, is now its greatest disappointment. Money—and fiat money at that—has subverted the democratic process everywhere; and today, in all nations, politicians from both conservative and liberal parties dance to fiat money's funereal beat—in a mockery of democracy's original intent.
Democracy—A Controlled Dance Requiring Two Parties to Perform
Nations, as well as people, can pass away in their sleep; and unless the American people wake up and wake up soon, their slumber will be the death rattle of what was recently the greatest nation on earth.
In just two weeks, on July 4 th 2008 , the United States will celebrate its 232nd birthday. But during its last 95 years, fiat money courtesy of the Federal Reserve System has steadily eroded the economic foundations of America . Once the wealthiest nation in the world, it is no longer. The cause is clear. So is the cure.
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