Does it bother anybody else that the Federal Reserve is actually a Privately owned Corporation?
Posted by admin | Under Federal Reserve Friday Oct 17, 2008Other than meeting with a committee from the house of representatives twice a year there is absolutely no federal oversight of the "Federal" Reserve. It is infact a private company that was incorporated in the state of Delaware in 1914.
It bothers me. It bothers me that the Congress created this scam in 1913 in violation of Article 1 Section 8 of the Constitution which says that the Congress shall have the power to "coin" money, and regulate the value of it. The Constitution also states that only gold and silver are legal tender.
In flagrant violation of the Constitution, the Congress created a private, central bank to provide for an "elastic" money supply. In truth, our politicians created what amounted to a quasi-government counterfeiting operation, where the first users of this newly created currency would be the politicians, themselves.
Just as a counterfeiter benefits by circulating his product, while the rest of us have the purchasing power of our dollars dimiminshed, our politicians could now buy votes with new government programs without risking loss of popularity by raising taxes. Some Americans like Charles Lindbergh, Sr. and Louis McFadden spoke out against this criminal conspiracy, but the "money powers" got their way.
Few Americans understand how the system works. When the Congress runs a deficit (spends more than it receives in taxes), it can either borrow money, or it can monetize the debt. Monetizing the debt means that the Treasury sells interest bearing treasury bonds to the Federal Reserve. The Federal Reserve pays for these bonds with federal reserve notes, which it creates out of nothing! This is how new currency comes into existence. This new currency has the same property as counterfeit money that you or I could print: it reduces the value of dollars already in circulation. This is called INFLATION.
The Americans people were better educated a hundred years ago, so initially the federals reserve notes carried the promise "Redeemable in Lawful Currency". This is an admission that frns are not real money, but a promise to pay. Eventually, as the general public became sufficiently dumbed down, that promise was replaced by the statement: "This note is legal tender for all debts public and private".
Americans need to know the difference between money and currency. Real money has intrinsic value. it does not depend on government to give it value. A hundred years ago people understood this. Today, only the most primitive people do.
Governments cannot create money. Their function is to coin it into recognized denominations and guarantee their weight and purity. That is really what a coin is. it is a piece of precious metal, which a government certifies is of a certain weight and purity. The money is the property of the people, not the government. Government only serves to coin it into circulating denominations.
At one time, a person could bring gold and silver to the mint. For a small charge called seignorage, the mint would coin it into circulating money. All this changed in 1933 when a criminal named Franklin Roosevelt stole the American people's gold. Once he had the gold, he changed the dollar from $20.67 per ounce to $35 per ounce – and made it illegal for Americans to own gold! This enabled him to pay for his socialist New Deal.
In 1965, another criminal named Lyndon Johnson told the American people that the price of silver had gone so high that the mint was now going to use copper and nickel for dimes and quarters. Initially, half dollars had 40% silver rather than the 90% used before 1965. In a few years, the silver was gone from the halves, too.
In 1971, another criminal named Richard Nixon cut all ties between the dollar and gold. This opened up the flood gates to unrestrained printing of federal reserve notes. Eventually, Nixon imposed wage and price controlls (only Congress can make law) on the American people. Wage and price controls always create shortages. Old people like me remember the shortages of the Seventies. Nixon's successor, a clown named Gerald Ford proposed to "fight inflation" by distributing WIN (Whip Inflation Now)Eventually, Nixon "imposed" wage and price controls, allegedly to control inflation. Wage and price controls to hide the effects of inflation only cause shortages. Old people like me remember the shortages of the Seventies buttons. The American people stupidly allowed this charade.
So who exactly is the Federal Reserve? Although there is much secrecy involving the Federal Reserve, we know that it's stockholders are the major banks. The Federal Reserve has never been auditted. Congres does not want to know about the Federal Reserve. They just enjoy having unlimited "dollars" to work with in their various vote-buying schemes. The fact that they are destroying the savings of retired Americans is irrelevant to them.
banks have to buy into it, yes thats true. its a quasi-governmental body. the board is appointed by the US government and has to report to them.
think of it this way, would you want politicans in direct control of the economy, so they manipulate it near elections to make it look like teh economy is doing better so they get re-elected?
it can be destroyed or altered at any time be legislation.
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References :
http://www.ConservativeNannyState.org
The Fed should be abolished. It's resonsible for never-ending miscalculations,lack of oversite and medling in the economy that seldom results in anything positive.It "prints" money, devalues our currency and always reacts–never acts.
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That's a misunderstanding on the structure and 'ownership' of the Federal Reserve.
The Federal Reserve System is a congressionally-chartered agency like the USPS and NASA. It is organized with a 100% government agency at the top (the Board of Governors), and branches beneath them that resemble corporations. (http://www.federalreserveeducation.org/fed101/structure/ )
The Board of Governors are all appointed for 14-year terms by the president and confirmed by congress. It operates per it's charter and laws set by congress. it is overseen by congress. There is no structure or mechanism for private ownership at this level; it is a government agency. Board members are forbidden by law to have any economic interest in a private bank. (Ref: Title 12 chapter 3 of the U.S. Legal Code). The Board determines monetary policy and provides high level oversight of the branches.
The 12 branches, however, are organized to involve member banks in the day-to-day operation. Member banks are required to buy shares in their branch. Each bank has one vote. The shares get a standard 6% dividend. They can vote for 6 of their 9 board members. All 'profit' from the Federal Reserve branches are turned over to the Treasury at the end of the year.
The incorporation of the branches was per very specific laws under US COde Title 12 chapter 9. Each branch filed with the Treasury department. There are no articles of incorporation filed in any state for any branch.
Clearly the Board of Governors and the system itself is not private. But are the Fed branches 'private'? The unique duality of control allows for reasonable peple to argue either side. Certainly it is not privately 'owned' in the classic sense as shares never change in value, have no relationship to the worth of the bank, and cannot be sold to the open market. However, clearly the ability to vote for most of their directors (of which are usually almost approved by the Board of Governors) gives the member banks considerable control of the day-to-day operations. Another telling sign is the Board of Governors are paid as Federal employees while the branches use their own payroll system. In the court ruling "Lewis vs US", it was determined that the branches can be considered 'private' for the purposes of tort law (i.e. they can be sued) relative to the day to day operations, but probably not where they are performing official government functions. (Ref: http://nesara.org/court_summaries/lewis_v_united_states.htm )
The independence of the Federal Reserve is a bit overstated. The Board is made up of political appointees who tend to be of the same political persuasion as the president. Congress, who has oversight by law, tends to interfere whenever they don't like what's going on at the Fed. This can amount to special sessions with congress, or proposed bills that make subtle changes to what the Fed should be doing.
With the advent of the internet, you can reference most of the Fed audit reports on-line.
References :
http://www.geocities.com/CapitolHill/Embassy/1154/flaherty.html
http://www.publiceye.org/conspire/flaherty/Federal_Reserve.html
http://famguardian.org/Subjects/MoneyBanking/FederalReserve/FRconspire/FRconspire.htm
http://webskeptic.wikidot.com/federal-reserve-system
Nope not at all!
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Yes, it bothers me very much.
Eliminate The Federal Reserve Bank. Solve 90% of the US and the world problems.
1)FR prints and lend $1 to the gov at 10% Interest rate
2) The gov has $ 1 in hand but owes $ 1.10, cycle continues.
3) The gov has no income, That's why FR created the IRS to steal Americans money
4) our Entire Federal Tax goes to pay what gov owes to FR.
and that money end's up in Europe in some Elites bankers pockets. who insults our Constsitions like this.
"Give me control of a nation's money and I care not who makes it's laws"
Mayer Amschel Buer Rothschild ( Freaking long name ! lol )
Rothschild Family Banker ; Major Stockholder in the Federal Reserve.
Regards.
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Hey Gray Shadow, didn't you claim you were some kind of Ron Paul supporter? I'm getting pretty tired of you comparing the Fed to NASA. NASA is not owned and controlled by private Banking interests, and NASA has FAR more oversight applied to it than the Fed ever will. Why is that? The Fed wields much more power over the lives of Americans than the people at NASA, whose only real crime is being a useless money pit that mostly serves military interests. They're not even close to the Monstrosity of the Fed, and yet the American Public gets to know all about THEIR business practices, including every single screw-up they make.
You see folks, the Board of Governors is a smoke screen. A sham. When confronted with the overwhelming evidence that the Fed is privately run by corporate interests, Fed apologists always fall back on the same tired argument.
"What about the Board of Governors, blah blah blah…"
You know who one of the first members of the Board of Governors was? Paul Warburg! The same man that was under the employ of J.P. Morgan and was instrumental in railroading the Federal Reserve over the American people.
Professor E.R.A. Seligman, a member of the international banking family of J. & W. Seligman, and head of the Department of Economics at Columbia University, wrote in an essay published by the Academy of Political Science, Proceedings, v. 4, No. 4, p. 387-90:
"It is known to a very few how great is the indebtedness of the United States to Mr. Warburg. For it may be said without fear of contradiction that in its fundamental features the Federal Reserve Act is the work of Mr. Warburg more than any other man in the country. The existence of a Federal Reserve Board creates, in everything but in name, a real central bank. In the two fundamentals of command of reserves and of a discount policy, the Federal Reserve Act has frankly accepted the principle of the Aldrich Bill, and these principles, as has been stated, were the creation of Mr. Warburg and Mr. Warburg alone. It must not be forgotten that Mr. Warburg had a practical object in view. In formulating his plans and in advancing in them slightly varying suggestions from time to time, it was incumbent on him to remember that the education of the country must be gradual and that a large part of the task was to break down prejudices and remove suspicion. His plans therefore contained all sorts of elaborate suggestions designed to guard the public against fancied dangers and to persuade the country that the general scheme was at all practicable. It was the hope of Mr. Warburg that with the lapse of time it might be possible to eliminate from the law a few clauses which were inserted largely at his suggestion for educational purposes."
Now that the public debt of the United States has passed 9 trillion dollars, we may indeed admit "how great is the indebtedness of the United States to Mr. Warburg." At the time he wrote the Federal Reserve Act, the public debt was almost nonexistent. Professor Seligman points out Warburg’s remarkable prescience that the real task of the members of the Jekyll Island conference was to prepare a banking plan which would gradually "educate the country" and "break down prejudices and remove suspicion".
http://www.theforbiddenknowledge.com/hardtruth/federal_reserve_secrets.htm
So, one of the men who had the MOST BIAS, the MOST PERSONAL INTEREST in the Fed, was then placed on the Board of Governors as an "Objective Overseer" and protector of the people?! Give me a break!
Think it stopped with Warburg? Think again! The recent Fed bailout of Bear-Stearns with YOUR TAX DOLLARS is proof that the Board of Governors approves what it is TOLD to approve. And then they go and lie about having a unanimous five person vote when one of the members was "missing" (also, at the time, two members where still unconfirmed by the Senate for months, which really tells me that they don't take the oversight of the Board of Governors very seriously.)
http://blogs.ft.com/maverecon/2008/03/the-case-of-the-missing-federal-reserve-board-members/
Also, the Fed is most definitely PRIVATE.
Section 4 of the Federal Reserve Act even designates the Fed as a PRIVATE CORPORATION.
"Upon the filing of such certificate with the Comptroller of the Currency as aforesaid, the said Federal reserve bank shall become a body corporate and as such, and in the name designated in such organization certificate, shall have power—
First. To adopt and use a corporate seal.
Second. To have succession after the approval of this Act until dissolved by Act of Congress or until forfeiture of franchise for violation of law.
Third. To make contracts.
Fourth. To sue and be sued, complain and defend, in any court of law or equity.
etc, etc………………………………….
http://www.federalreserve.gov/generalinfo/fract/sect04.htm
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".
At no point did the court claim that the Fed was "ONLY PRIVATE IN THE CASE OF TORT LAW." At no point did the Court say that the Fed was not private in the case of "Government Function." They say quite clearly that THE FED BANKS ARE PRIVATE CORPORATIONS RUN BY A BOARD OF DIRECTORS. Most of which the Banks choose themselves.
"Debunkers" constantly try to REWRITE the language of these court cases to fit their own agenda. Its not going to work.
The Fed has NEVER been fully audited by the GOA. They are restricted by the FED ITSELF.
The Federal Banking Agency Audit Act stipulates the following areas are to be excluded from GAO inspections:
(1) transactions for or with a foreign central bank, government of a foreign country, or non-private international financing organization;
(2) deliberations, decisions, or actions on monetary policy matters, including discount window operations, reserves of member banks, securities credit, interest on deposits, open market operations;
(3) transactions made under the direction of the Federal Open Market Committee; or
(4) a part of a discussion or communication among or between members of the Board of Governors and officers and employees of the Federal Reserve System related to items.
Uh, OK…….so we're not allowed to know how or why they make Monetary Policy decisions. We're not allowed to audit the Reserves of Member Banks which means we can never know whether they are honest in their transactions. And we also can never Audit their monetary Transactions with foreign countries or other Central Banks?
Wow, what exactly ARE the people of this Country allowed to know about the private corporation that runs the economy and thus their lives?
I could go on for fifty more pages on why the Fed is pure evil, but all you really have to do is take a look around you. Look at the state of our economy! Is it possible that the FED is just a parasite, leaching off the United States and bumbling about in a greedy, yet ignorant manner? Or, is it possible that the Fed is a tool in a greater agenda? Remember, the Fed is run by Corporations with multinational interests. They have no real loyalties to the United States. If our economy collapses, they can just pick up, and walk away.
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They are not bothered to ask when the last audit took place either!
Your banking system was based on real gold until it adopted our UK 'private' system in the last century!
People aren't bothered here in the UK either, sad!
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Yes, it bothers me. It's a shame that more Americans aren't aware of this and everyone should speak out against this private corp. ripping us off! Because they loan the money out and we, the taxpayers, pay interest on it.
References :
It bothers me. It bothers me that the Congress created this scam in 1913 in violation of Article 1 Section 8 of the Constitution which says that the Congress shall have the power to "coin" money, and regulate the value of it. The Constitution also states that only gold and silver are legal tender.
In flagrant violation of the Constitution, the Congress created a private, central bank to provide for an "elastic" money supply. In truth, our politicians created what amounted to a quasi-government counterfeiting operation, where the first users of this newly created currency would be the politicians, themselves.
Just as a counterfeiter benefits by circulating his product, while the rest of us have the purchasing power of our dollars dimiminshed, our politicians could now buy votes with new government programs without risking loss of popularity by raising taxes. Some Americans like Charles Lindbergh, Sr. and Louis McFadden spoke out against this criminal conspiracy, but the "money powers" got their way.
Few Americans understand how the system works. When the Congress runs a deficit (spends more than it receives in taxes), it can either borrow money, or it can monetize the debt. Monetizing the debt means that the Treasury sells interest bearing treasury bonds to the Federal Reserve. The Federal Reserve pays for these bonds with federal reserve notes, which it creates out of nothing! This is how new currency comes into existence. This new currency has the same property as counterfeit money that you or I could print: it reduces the value of dollars already in circulation. This is called INFLATION.
The Americans people were better educated a hundred years ago, so initially the federals reserve notes carried the promise "Redeemable in Lawful Currency". This is an admission that frns are not real money, but a promise to pay. Eventually, as the general public became sufficiently dumbed down, that promise was replaced by the statement: "This note is legal tender for all debts public and private".
Americans need to know the difference between money and currency. Real money has intrinsic value. it does not depend on government to give it value. A hundred years ago people understood this. Today, only the most primitive people do.
Governments cannot create money. Their function is to coin it into recognized denominations and guarantee their weight and purity. That is really what a coin is. it is a piece of precious metal, which a government certifies is of a certain weight and purity. The money is the property of the people, not the government. Government only serves to coin it into circulating denominations.
At one time, a person could bring gold and silver to the mint. For a small charge called seignorage, the mint would coin it into circulating money. All this changed in 1933 when a criminal named Franklin Roosevelt stole the American people's gold. Once he had the gold, he changed the dollar from $20.67 per ounce to $35 per ounce – and made it illegal for Americans to own gold! This enabled him to pay for his socialist New Deal.
In 1965, another criminal named Lyndon Johnson told the American people that the price of silver had gone so high that the mint was now going to use copper and nickel for dimes and quarters. Initially, half dollars had 40% silver rather than the 90% used before 1965. In a few years, the silver was gone from the halves, too.
In 1971, another criminal named Richard Nixon cut all ties between the dollar and gold. This opened up the flood gates to unrestrained printing of federal reserve notes. Eventually, Nixon imposed wage and price controlls (only Congress can make law) on the American people. Wage and price controls always create shortages. Old people like me remember the shortages of the Seventies. Nixon's successor, a clown named Gerald Ford proposed to "fight inflation" by distributing WIN (Whip Inflation Now)Eventually, Nixon "imposed" wage and price controls, allegedly to control inflation. Wage and price controls to hide the effects of inflation only cause shortages. Old people like me remember the shortages of the Seventies buttons. The American people stupidly allowed this charade.
So who exactly is the Federal Reserve? Although there is much secrecy involving the Federal Reserve, we know that it's stockholders are the major banks. The Federal Reserve has never been auditted. Congres does not want to know about the Federal Reserve. They just enjoy having unlimited "dollars" to work with in their various vote-buying schemes. The fact that they are destroying the savings of retired Americans is irrelevant to them.
References :
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.