The Federal Reserve

The most secret and least accountable operation of the federal government is the Federal Reserve.  It was established in 1913 by Bankers, Monopolists and Washington insiders.  
Despite public resistance, powerful monopolists, J.P. Morgan, John D. Rockefeller and others prevailed with a prolonged and elaborate propaganda campaign.   There were incremental victories prior to 1913.   Commissions on Monetary policy  were totally populated by JP Morgan and Rockefeller people.  

In the final phase, the panic of 1907 was used as a propaganda event to assert that America needed a lender of last resort, a central bank with the American taxpayer guaranteeing payment for any failure.  The panic was the cumulated effect of the currency inflation created by the Secretary of the Treasury Leslie Shaw, a central bank advocate.  This government created  crisis event allowed for Big Bankers and Monopolists to find reformers among the nations economists,  academics, and financial experts.   With money and propaganda planting the seeds of consensus among the right “experts”,  this final phase lead to the new Federal Reserve System.   The victory of President Andrew Jackson over the earlier central bank was fully reversed.  

Very good video from Glenn Beck on Federal Reserve - Click Here

Three Central Banks existed in the US  prior to the Federal Reserve.   Bankers always lobby for a central bank when one doesn’t exist.   The largest banks make fortunes at the expense of the country’s citizens when a central bank exists to control the currency.    With control of the currency comes control of great power over a nation. 

Inflation is a monstrous hidden tax.   The Federal Reserve is the engine of inflation while it asserts that it is there to keep inflation under control. 

Fiat money gives the government instant purchasing power, but it subtracts the purchasing power from the citizens.  Watch as the price of food, and gasoline goes up when the Federal Reserve does its quantative easing.  The Fed buys $500 Billion in assets which can expand the amount of dollars ten fold using fractional-reserve banking (or legal counterfeiting of dollars).  For a full explanation of this, read "The Case Against the Fed" by Murray N. Rothbard.

Quick Video:

Jekyll Island and the Cartel of Banks

Video - 30 minutes in length:

Cartoon on Money

What happened back in 1913?

The Republican Congress would have passed the bill prepared by Senator Nelson Aldrich (R, RI), head of the Senate Finance Committee and father-in-law to John D. Rockefeller, Jr.  But elections of 1912 went to the Democrats.   The Federal Reserve legislation passed instead under the Democrats.  The bill that passed contained virtually the same language of the Aldrich legislation .  President Woodrow Wilson signed the bill.  Its proponents came from the Progressive wing of the Republican party, including the McKinley Administration and the Theodore Roosevelt Administration.    The “conservative” William Howard Taft was also in the boat for a new Central Bank for the U.S.   What they all have in common is that all  belonged  to the ruling class of  Washington politicians that partner with Monopolists.

See the Article on the Ruling Class by Angelo M Codevilla 

The 28th President of the United States was a progressive who signed the Federal Reserve Act,  and the Federal progressive income tax too.   President Wilson was a big government and global government advocate who damaged generations of Americans.   Woodrow Wilson also segregated the Navy and parts of the Federal Government. 

Playing the American People

The Federal Reserve System was the product of monetary commissions,  studies,  marketing,  secret meetings,  political insiders, and European Central Bank worshippers.  These commissions and studies groups were always made of Morgan and Rockefeller associates and professionals that were pro-central bank from the start.   Valid dissenting voices from the general population were excluded.   The powerful minority ensured that the recommendations to let a central bank control the currency was the managed consensus.         

Much like Global Warming, there was always funding for the people with the “correct” viewpoint.    The continuous propaganda for the central bank asserted that its creation would be a defense against the monopolists like JP Morgan and Rockefeller and their need to inflate the currency.   Wall Street always benefits from inflated currency while the rest of the country suffered from the loss of value for their assets.   The people who get the new money first always make a profit while the rest of the country absorbs the loss.   The Bankers in the service of the JP Morgan and Rockefeller cabal must have amused themselves launching propaganda that asserted a Central Bank would protect the country from themselves.      

The big lie from long ago parallels today's methodology that plays the American public.   Al Gore became a multi-millionaire promoting carbon credits that his business interest profit from.  An elaborate case for change needs to be built with the help of the right experts.   Gore profits at the expense of the country without really contributing anything to society.   The Federal Reserve makes money out of nothing at all.    Al Gore makes Carbon credits out of nothing at all.   They get paid for making no product or service. The taxpayers pay interest on money that never exists, while Al Gore makes money off of higher energy costs in response to contrived science.   Contrived economics justified the Federal Reserve's creation. 

The central bank was promoted by both Republican and Democrats who embraced strong central control by government and big banks.  Control and wealth for the monopolists and politicians in Washington were the winners.  Citizens, tax payers,  small business, small banks and individual liberty were the losers.   Their saving accounts and retirement earnings from a lifetime of labor are diminish in value for the benefit of monopolists and power-spending politicians.

G. Edward Griffin wrote "The Create from Jekyll Island"

The banks no longer had the pressure to have the capability to pay all its depositors if they demanded their money at the same time.   If there was a bank run, the Federal Reserve would create money from nothing to allow the lower bank to cover their direct deposits.  But the taxpayers had to pay the interest for the new money that the Federal Reserve loaned to the banks in trouble.   The Federal Reserve has the ability to redistribute wealth from the citizens of the United States at will.   The American citizen has no opportunity to extract accountability from Federal Reserve Bank.  

In 1913, a cartel of banks replaced decentralized banks.  The control of national currency was placed in the hands of a small circle of monopolist’s and their banks.  The Federal Reserve was given monopoly of the issue of all bank notes. State Banks and National Banks could only issue deposits; and the deposits had to be redeemable in Federal Reserve Notes.  Immediately,  the requirements for reserves was greatly diminished;  the requirements were cut in half.   A risky monetary situation was made even more reckless.

A central bank controlled by bankers and the government works until a country grows the debt to a size where it can no longer be serviced by the country.     Letting the central bank and its ruling class inflate the currency always has a deadend.   Many countries have gone through hyper inflation and destroyed their citizens estates.   Things like social security,  medicare, and other entitlements will collapse during a hyper inflation crisis.  A choice between a government default or pay entitlements will exist.  Riots, strikes, civil disobedience do not remedy the situation or punish the people who stole the people's wealth. 

The Federal Reserve's First Big Achievement

The Federal Reserve’s first big achievement was to inflate the American dollar to finance the U.S participation in WWI and also to give money to the Europeans.   Instead of a stalemate between the Europeans Combatants,  the American entry tip the balance in the war and resulted in the total defeat of Germany and its allies.   The Federal Reserve allowed Woodrow Wilson to enter the U.S into a major war.   J P Morgan was in the middle of World War I making profits.  As soon as war broke out,  Morgan's close ties with England allowed the House of Morgan to be the sole purchasing agent in the United States for war material.   The Morgans also were the sole underwriter for all the British and French bonds floated in the U.S. to pay for the arms and other goods purchased in the U.S for the European countries. 

The Federal Reserve under Benjamin Strong, a long time associate of  J P Morgan,  promptly doubled the money supply to finance the U.S war effort and to insure an Anglo-French Victory.  

It can be argued that the German Defeat in WWI,  lead to the rise of Adolph Hitler and the German Socialist Party.   The use of inflation allows countries to wage prolonged war.   It also creates a burst of profits on Wall Street. 

The Federal Reserve's Second Achievement

The second great achievement of the Federal Reserve was the Great Depression of 1929.  Its very creation was suppose to minimize failures in business cycles.    The depression lingered for over a decade from progressive big government regulations, increased taxes to pay for more inflation, and continuous propaganda.  A real free market and honest decentralized banks would have lifted the country out of the depression, but all this was stifled.  

The Federal Reserve advocates never acknowledge the failures and damage caused by monopoly control over the national currency.   Instead, the propaganda asserts that more central control and government intervention in the economy is the real answer.   More elastic money, higher taxes,  more federal regulations, and government entitlements make the economy go.

The asserted purpose of  the Federal Reserve was to curb the commercial bank's tendency to over-expand and causing cycles of economic booms and busts.  The 'impartial' Central Bank could restain the banks from their narrow and selfish activities.   But as history shows consistently, the central bank does not curtail the natural tendency of banks to inflate, but instead allows banks to inflate and expand together without incurring the penalities of market competition.   

 A banking system that inflates currency can prop up failing business enterprises.   An authentic free market system flushes out business entities that cannot offer a needed service or product.  All those monopolist banks and investment houses that are too big to fail are saved by inflating the currency and letting the American family pay for their failures.        

Wall Street is the roaming grounds for rich American liberals that advocate bigger and more controlling central government.  Goldman Sacks, General Electric and other corporations have close working arrangements with the Federal Government and the Federal Reserve.   They advocate more regulation to create barriers to competition to their monopolies.  Meanwhile, GE and other global corporations get access to massive grants and loans.  

 The chairman of the New York Federal Reserve Bank made millions off his secret purchase of Goldman Sachs stock, "in violation of Federal Reserve policy," as the Wall Street Journal put it, at a time when the N.Y. Fed was ostensibly overseeing the antics of the Wall Street firm.  The media barely registered a blip of concern.   The New York Fed Chairman Stephen Friedman is a director at Goldman Sachs (GS), a company for which he has a main role in oversight.  Despite this conflict of interest, Friedman bought shares in Goldman Sachs in December, profiting to the tune of $1.7 million. 

 Goldman received an additional $8.1 billion that will not have to be returned to taxpayers. This is a result of the bailout engineered by then-N.Y. Fed president Geithner of AIG, which listed Goldman as its top insured credit-swap customer.

Ever since the Glass-Steagall Act, banking and insurance businesses had been kept separate. 
Repeal of the Glass_Steagall Act  was done for special interests and damaged the country. 
Thank you President Clinton!    The full article is at the American Thinker website:

 www.americanthinker.com/2010/12/goldman_sachs_prospers_at_taxp.html

Nov. 10 (Bloomberg) -- The Federal Reserve refused to identify the recipients of almost $2 trillion of emergency loans from American taxpayers or the troubled assets the central bank is accepting as collateral.

Fed Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson, formerly of Goldman Sachs, said in September they would comply with congressional demands for transparency in a $700 billion bailout of the banking system. Two months later, as the Fed lends far more than that in separate rescue programs that didn't require approval by Congress, Americans have no idea where their money is going or what securities the banks are pledging in return.  

The nation's biggest banks, Citigroup, Bank of America Corp., JPMorgan Chase, Wells Fargo & Co., Goldman Sachs Group Inc. and Morgan Stanley, declined to comment on whether they have borrowed money from the Fed. They received $120 billion in capital from the TARP, which was signed into law Oct. 3, 2008.

Back on Nov. 6, 2008,  House Financial Services Committee Chairman Barney Frank said the Fed's disclosure is sufficient and that the risk the central bank is taking on is appropriate in the current economic climate. Frank said he has discussed the program with Timothy F Geithner, president and chief executive officer of the Federal Reserve Bank of New York and the successor to Henry Paulson as Treasury secretary.

Whether the Fed loans it or the government prints it, it's our money.  So besides the $700 billion TARP, the $787 billion stimulus, the Federal Reserve lent people $2 trillion at the same time.  We don't know where it went and they will not tell us.

In 2010, we now know that $116 Billion dollars was given to General Electric and its unclear if the money is suppose to be paid back.  General Electric owns NBC which is a full blown advocate for President Obama and the Democrat Party.   Jeffrey Immelt, CEO of GE, is a close financial supporter and beneficiary of President Obama policies.   Jeff Immelt sits on Obama's Economic Recovery Advisory Board.  GE is positioning itself to reap huge profits from Green business ventures that will come to fruition when a Carbon Tax is passed.   GE uses the power of government to guarantee it business.  According to reporting by Andrew Wilkow, a Sirius radio host, GE is banking on government-ordered computerized health records. If that passes, GE's technology could be used, earning the company billions. To make that happen, GE has appointed former Senator Tom Daschle to its health advisory board. Daschle was President Obama's choice as secretary of Health and Human Services until a scandal derailed him.

This year, the Obama Administration gave General Electric $24.9 million in grants from the $787 billion "stimulus" funds. 

The latest revelations now indicates the Federal Reserve loaned out not $2 trillion dollars, but an amount over $3 trillion dollars.   This central bank has loaned or gave away an amount twice our government's annual budget.    Some of the Federal Reserve loans went to European Banks, some to bail out underfunded pension liabilities for teachers unions, Teamsters, public employees unions, and other amounts to GE, and Harley-Davidson.

New documents show that the most loans and other aid for U.S. institutions over time went to Citigroup ($2.2 trillion)  to Merrill Lynch ($2.1 trillion), Morgan Stanley ($2 trillion), Bear Stearns ($960 billion), Bank of America ($887 billion), and to Goldman Sachs.    The cartel of banks and insider corporations cashed in again.   

Russia and China have announced a decision to abandon the dollar in bilateral trade dealings, resolving instead to use their own currencies.   Read the full article by Jerrome Corsi.

Jerome Corsi Article  

China objects to Federal Reserve's quantitative easing 2

At the G20 meeting in South Korea earlier this month, China denounced the Federal Reserve's plan to pump $600 billion into the U.S. economy in the next eight months through buying Treasury bonds, in a plan known generally as "Quantitative Easing 2," the Guardian in London reported.

John Pierpont Morgan, the son of a successful financier, born in 1837,  educated in Boston and Germany, and trained as an accountant in a New York banking firm. In 1867, Morgan transferred to his father's banking company and ten years later became a partner in Drexel, Morgan and Company. This was reorganized as J. P. Morgan and Company in 1895, making it one of the most important banking houses in the world.

In 1891 Morgan arranged the merger of  Edison's General Electric and Thompson-Houson Electric Company to form General Electric, which then became the country's main electrical-equipment manufacturing company. After financing the creation of the Federal Steel Company he joined with Henry Frick to merge it with Carnegie Steel Company to form the United States Steel Corporation.

Morgan had good links with the London financial world and was able to arrange the capital for growing industrial corporations in the United States with money from British bankers. This enabled Morgan to become a member of the board of directors in several of these companies including most of the major railroad companies. By 1902 Morgan controlled over 5,000 miles (8,000 km) of American railroads.

In his final years, Morgan gained control of various banks and insurance companies. This in turn gave him influence over most of the nation's main corporations.  John Pierpont Morgan died on 31st March, 1913.   The Federal Reserve System was unleashed in the same year after decades of elaborate propaganda.

1. The Federal Reserve is incapable of accomplishing its stated objectives.
2. It is a cartel operating against the public interest.
3. It's the supreme instrument of usury.
4. It generates our most unfair tax.
5. It encourages war.
6. It destabilizes the economy.    
   
7.  It steals the value of a person's life time effort of work and savings for retirement 

http://endthefedusa.ning.com/  

Thomas Jefferson said in 1802:

 
    I believe that banking institutions are more dangerous to our liberties than standing armies.  If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property - until their children wake-up homeless on the continent their fathers conquered.

Even the Leftist Senator from Vermont has concerns about the secrecy and arrogance of the Federal Reserve.   Read the March 28, 2011 article on the communications between Senator Sanders and the Ben Bernanke.      Sanders Seeks More Fed Lending Details.

Patricia Wheat discusses Monetary issues at the Liberty Summit on Dec 11, 2010.