According to <http://www.dallasfed.org/htm/system/frs.html> the Federal Reserve is some kind of beneficent financial system created to help the citizens. For example:
“Federal Reserve (‘The Fed’): the central bank of the United States; an independent organization created by Congress to keep our money valuable and our financial system healthy; one of the three federal bank regulatory agencies in the United States; guardian of payments system efficiency and effectiveness; lender of last resort.”
Aw, gee. That makes one all fuzzy and warm inside! Or is that indigestion?
John Mayard Keynes, a world renowned economist, has said,
“There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic laws on the side of destruction, and does it in a manner which not one in a million is able to diagnose.”
There is just the possibility that “The Fed” is ultimately the debaucher of the currency of the united States of America, and has thereby overturned “the existing basis of society.” To access the full impact of that statement, read Congressman McFadden’s view. It’s long, but well worth the read for anyone truly interested in the details.
Historically, the Fed was created by Congress passing The Federal Reserve Act of 1913. Shortly thereafter, in 1914, Federal Reserve Banks were incorporated, and beginning in 1916, began to circulate their private, corporate Federal Reserve Notes (FRNs) as money alongside the nation’s currency (the latter existing by right or according to the law).
United States Notes -- the real Money -- were actually warehouse receipts for deposits of gold and silver in a warehouse (bank), and thus represented wealth (i.e. portable land, the money of sovereigns, substance). The new Fiat Currency -- “fiat” being an order or decree, especially an arbitrary one -- the FRNs, amounted to “bills for that which has yet to be paid,” i.e. for what was owed. For the new “benefit” of being allowed to use FRNs, aka U.S. Government debt instruments -- in lieu of Gold Certificates or Silver Certificates -- the US agreed to redeem the newly issued FRNs in gold and in addition to pay interest for their use in gold. Only in gold. In essence, the Fed issued paper, in which the US paid gold for the “privilege” of using it. This was the basis of the Federal Reserve Act.
In the quote above, note that “The Fed” is: “an independent organization created by Congress”, and furthermore that it is the: “guardian of payments system efficiency and effectiveness’. The Fed is indeed independent, although much is made of the fact that the President, with the advice and consent of the Senate, appoints the Board of Governors. But this has all the ingredients of a trick of lights and mirrors.
The second aspect, the “guardian of payments” thing, is more interesting. For example, what payments? The answer is apparently the requirement for the US government to pay gold for the use of the FRN paper and the interest on these debt instruments. We are actually paying interest on a worthless, “colored” (deceptive) currency. This is not good.
To make the point further, we can read further in the Dallas Fed’s website:
“Congress created the Federal Reserve System in 1913 to serve as the central bank of the United States and to provide the nation with a safer, more flexible and more stable monetary and financial system. Over the years, the Fed’s role in banking and the economy has expanded, but its focus has remained the same. Today, the Fed’s three functions are:
1. to conduct the nation’s monetary policy,
2. to provide and maintain an effective and efficient payments system, and
3. to supervise and regulate banking operations.”
[The Fed has indeed expanded its role!]
“Although all three roles are important in maintaining a stable growing economy, monetary policy is the most visible to many citizens. Monetary policy is the strategic actions taken by the Federal Reserve to influence the supply of money and credit in order to foster price stability and maintain maximum sustainable economic growth. Through these actions, the Fed helps keep our national economy strong and the world economy stable.”
[Control is the key word, as well as the self-serving activity that if someone owes you a great deal of money, you really want that person to stay healthy and fit to work in order for them to pay all that money you owe!]
“Independent Within Government. The Federal Reserve System was structured by Congress as a distinctly American version of a central bank, established to carry out Congress’ own constitutional mandate to “coin money and regulate the value thereof”. The Fed is a decentralized central bank, with Reserve Banks and branches in 12 districts across the country, coordinated by a Board of Governors in Washington, D.C.”
[The Constitution for the United States of America does indeed grant Congress the Power “to coin Money, regulate the Value thereof”. The Constitution is silent, however, on the subject of Congress sub-contracting the job. On the other hand, “coin Money” implies a hard currency object, and not paper -- such as FRNs.]
“The Fed has a unique public/private structure that operates independently within government but not independent of it. The Board of Governors, appointed by the president of the United States and confirmed by the Senate, represents the public sector, or governmental side of the Fed. The Reserve Banks and the local citizens on their boards of directors represent the private sector. This structure provides accountability while avoiding centralized, governmental control of banking and monetary policy.”
[Know any local citizen on a Reserve Bank board of directors?]
“The Federal Reserve is fiscally independent because it receives no government appropriations. The Fed funds its activities with the interest earned from loans to banks and investments in government securities and from the revenue received from providing services to financial institutions. The Fed’s financial goal in providing services is to generate only enough revenue to cover costs. Any excess earnings -- money made above the cost of operations -- is turned over to the U. S. Treasury.”
[Being fiscally independent inevitably implies being independent in terms of control. If you are not the one paying the bills, you are almost certainly not the one in charge. In addition, the interest earned from “investments in government securities” is simply the same old con: the Fed creates money out of thin air, loans it to the government, and then charges interest on it. It even charges for the creating portion as well!]
The Fed is simply part of the US Bankruptcy (aka The American Bankruptcy) and its aftermath (including The Decree). It’s the international Banksters in action. But read Congressman McFadden’s speech on the Federal Reserve Corporation. And then think about converting those FRNs into something useful.
And in the interim, be encouraged (or discouraged) by the introduction of a congressional bill known as the “Federal Reserve Board Abolition Act.” To wit: HR 2778, introduced by Representative Ron Paul into the House of the 108th CONGRESS, 1st Session, and dated July 17, 2003. [This is, apparently, at least the second time the bill has been introduced] That’s the good news. The bad news is that the bill, as expected, was referred again to the Committee on Financial Services (where it is undoubtedly lying dormat). (5/23/05)
Meanwhile, what it says in brief is:
To abolish the Board of Governors of the Federal Reserve System and the Federal reserve banks, to repeal the Federal Reserve Act, 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 TITLE.
This Act may be cited as the ‘Federal Reserve Board Abolition Act’.
This Act may be cited as the ‘Federal Reserve Board Abolition Act’.
SEC. 2. FEDERAL RESERVE BOARD ABOLISHED.
(a) IN GENERAL- Effective at the end of the 1-year period beginning on the date of the enactment of this Act, the Board of Governors of the Federal Reserve System and each Federal reserve bank are hereby abolished.
(b) REPEAL OF FEDERAL RESERVE ACT- Effective at the end of the 1-year period beginning on the date of the enactment of this Act, the Federal Reserve Act is hereby repealed.
(c) DISPOSITION OF AFFAIRS-
(1) MANAGEMENT DURING DISSOLUTION PERIOD- During the 1 year period referred to in subsection (a), the Chairman of the Board of Governors of the Federal Reserve System--
(A) shall, for the sole purpose of winding up the affairs of the Board of Governors of the Federal Reserve System and the Federal reserve banks--
(i) manage the employees of the Board and each such bank and provide for the payment of compensation and benefits of any such employee which accrue before the position of such employee is abolished; and
(ii) manage the assets and liabilities of the Board and each such bank until such assets and liabilities are liquidated or assumed by the Secretary of the Treasury in accordance with this subsection; and
(B) may take such other action as may be necessary, subject to the approval of the Secretary of the Treasury, to wind up the affairs of the Board and the Federal reserve banks.
(2) LIQUIDATION OF ASSETS-
(A) IN GENERAL- The Director of the Office of Management and Budget shall liquidate all assets of the Board and the Federal reserve banks in an orderly manner so as to achieve as expeditious a liquidation as may be practical while maximizing the return to the Treasury.
(B) TRANSFER TO TREASURY- After satisfying all claims against the Board and any Federal reserve bank which are accepted by the Director of the Office of Management and Budget and redeeming the stock of such banks, the net proceeds of the liquidation under subparagraph (A) shall be transferred to the Secretary of the Treasury and deposited in the General Fund of the Treasury.
(3) ASSUMPTION OF LIABILITIES- All outstanding liabilities of the Board of Governors of the Federal Reserve System and the Federal reserve banks at the time such entities are abolished, including any liability for retirement and other benefits for former officers and employees of the Board or any such bank in accordance with employee retirement and benefit programs of the Board and any such bank, shall become the liability of the Secretary of the Treasury and shall be paid from amounts deposited in the general fund pursuant to paragraph (2) which are hereby appropriated for such purpose until all such liabilities are satisfied.
(d) REPORT- At the end of the 18-month period beginning on the date of the enactment of this Act, the Secretary of the Treasury and the Director of the Office of Management and Budget shall submit a joint report to the Congress containing a detailed description of the actions taken to implement this Act and any actions or issues relating to such implementation that remain uncompleted or unresolved as of the date of the report.
Not overly encouraging, but where there’s a bill, there’s a way.
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