What is the Federal Reserve?
This article is on the Federal Reserve Banking system. It will contain none of my own personal beliefs, but will contain one hundred percent of my factual research. But first, a few quotes…
"No State shall make any Thing but gold and silver Coin a Tender in Payment of Debts."
Article 1, Section 10, United States' Constitution
History of the Federal Reserve
The short title of the Act of December 23, 1913, ch. 6, 38 Stat. 251, shall be the “Federal Reserve Act.” The Act was signed into law by President Woodrow Wilson. It was the act of congress that granted the legal authority of issuing legal tender to the central banking system of the United States of America, the Federal Reserve System.
The Aldrich plan called for the establishment of a National Reserve Association with 15 regional district branches and 46 geographically dispersed directors primarily from the banking profession. The Reserve Association was delegated to create money, make emergency loans to member banks, and act as the fiscal agent for the U.S. government. The outline to the plan had been formulated in a secret meeting on Jekyl Island in November 1910 in which Aldrich and other well connected financiers attended.
Since the Aldrich Plan essentially gave full control of this system to private bankers, there was strong opposition to it from rural and western states because of fears that it would become a tool of certain rich and powerful financiers in New York City. This, years later, gave birth to our Central banking system, the Federal Reserve.
“The refusal of King George III to allow the colonies to operate an honest money system, which freed the ordinary man from the clutches of the money manipulators, was probably the prime cause of the revolution.”
What is a central bank?
A central bank is an institution that produces the currency of an entire nation. Based on historical precedent, two specific powers are inherent in its practice; control of inflation (money supply) and the control of interest rates. A central bank doesn’t actually supply a government with any money, it loans it to them, plus interest. Then, by increasing and decreasing the supply of money, the Central bank regulates the value of the currency being issued. Without a doubt, the only noun this process can create in the long run is debt.
Every dollar produced has interest attached to it. The only way to pay for the debt created from the printed dollar bill loaned to our government from the federal reserve…is to produce more money to perpetually cover the outstanding debt…hence the last few bailouts, and the next few.
Who does the Federal Reserve Bank work for?
The Federal Reserve is a private corporation. It is as federal as FedEx. the Ninth Circuit Court put that issue to rest in 1982 when they adjudicated:
"Examining the organization and function of the Federal Reserve Banks, and applying the relevant factors, we conclude that the Reserve Banks are not federal instrumentalities for purposes of the FTCA, but are independent, privately-owned and locally controlled corporations."
-Lewis vs. U.S., 680 F. 2d 1239, 1241
It makes its own policies and is under zero regulations. It is a private bank for profit that loans all of our currency at interest to the government. This completely mirrors the fraudulent central bank the United States founders initiated the American Revolution to abolish.
"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. Some people think the Federal Reserve Banks are U.S. government institutions. They are not government institutions. They are private credit monopolies; domestic swindlers, rich and predatory money lenders which prey upon the people of the united States for the benefit of themselves and their foreign customers. The Federal Reserve Banks are the agents of the foreign central banks. The truth is the Federal Reserve Board has usurped the Government of the United States by the arrogant credit monopoly which operates the Federal Reserve Board."
-Congressman Louis T. McFadden, Chairman of the House Banking & Currency Committee, speech on the floor of the House of Representatives, June 10, 1932
Why Haven’t I Heard About This?
The important question is…why WOULD you have heard about this? The way we find out anything is through research. Nowadays in our reality, we are educated by sound bites and headlines, never delving deeper into topics that run our lives. We prefer to hear about promiscuity of celebrities, the final score of the big game, and the next bar to head to…but I digress…
"These international bankers and Rockefeller-Standard Oil interests control the majority of newspapers and the columns of these papers to club into submission or drive out of public office officials who refuse to do the bidding of the powerful corrupt cliques which compose the invisible government."
What is the Income Tax?
Another bill passed in 1913 other than the Federal Reserve Act, was the Federal Income Tax act. This is a tax that isn’t a directly apportioned tax. All direct taxes need to be apportioned in order to be deemed legal according to the constitution.
Another interesting stat I found about the federal reserve act is that the required amount of states required to ratify the amendment was never met. Technically, it was never made legal. As proof of this, here is a precedent cited dating as recent as 2003, “If you…examined [The 16th Amendment] carefully, you would find that a sufficient number of states never ratified that amendment.” U.S. District Court Judge James C. Fox 2003
Roughly 34% if a workers income is stripped from our paycheck via the income tax. This means that we work about four months out of the year for free, in order to fulfill this tax obligation. Where does this money go? If you guessed roads, hospitals or schools…it is a naïve guess. Not one penny is used for any governmental programs. The money is used to pay off the interest from the currency being produced by the Federal Reserve Bank. A system that does not have to exist, or at least should be a branch of government that could possibly be audited…instead of a private bank that can’t.
Third, at present day, roughly 35% of a workers income is taken from them via the income tax. That means you work four months out of the year for free in order to fulfill this tax obligation. The money is used to pay off the interest from the currency being produced by the Federal Reserve Bank; a system that does not have to exist…or at least should be a branch of government that could be audited…instead of a private bank that can’t.
In a nut shell, this means that the four months you work for free, is fed DIRECTLY into the pockets of the Federal Reserve bankers who created the system, and the politicians who allow it to remain in existence.
Lastly, even though we constantly hear about the legality of the income tax. There is nowhere a law, a statute, or a code requiring us to pay this tax. IT IS VOLUNTARY! We are without a doubt, selling our souls to bankers in order to pay the costs of our slavery. The longer we allow them to print money and control the nation’s credit, the more generations that will be born under their control…
What is Quantative Easing?
The Federal Reserve just printed 600 billion dollars for “quantitative easing.” What does that mean? It is an execution by the Federal Reserve to use the money it has printed in order to buy treasury bonds. If you and I wanted to buy treasury bonds, we could buy them DIRECTLY from the treasury department, as many as we wanted, right from the treasury. But, when the Federal Reserve decided to buy treasury bonds, using our money, they purchase them from Goldman Sachs…and they aren’t sold for price, they are sold plus interest…The federal reserve announces beforehand how much they are going to buy, then allows Goldman Sachs to round it up, and sell it at their price.
(I won’t get into Goldman Sachs, but if you google them, you will find out who actually runs the American government. Also a link entitled, Has Goldman Sachs Taken over the Bush Administration? http://www.commondreams.org/headlines06/0820-06.htm) or perhaps that’ll be the topic of a future article.
This will not be the home of the free until it becomes the land of the brave...
THE CREATURE FROM JEKYLL ISLAND
A Second Look at the Federal Reserve
By G. Edward Griffin