Federal Reserve Power
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FEDERAL RESERVE POWER
Below is quote from Representative Louis T. McFadden, Chairman of the
Committee on Banking and Currency for 12 years as quoted from the
Congressional Record
The Federal Reserve Board, ..., has cheated the Government of the United
States and the people of the United States out of enough money to pay the
national debt...Our people's money to the extend of $1,200,000,000 has within the last few months been shipped abroad to redeem Federal Reserve Notes and to pay other gambling debts of the traitorous Federal Reserve Board and the Federal
Reserve Banks...............
SUMMARY OF QUICK FACTS
1a. The Federal Reserve (FED) is a PRIVATELY OWNED, organization.
unbelievable? Check the ENCYCLOPAEDIA BRITANNICA.
b. Below is the list of the owners of the 12 Central Banks:
- Rothschild Bank of London
- Rothschild Bank of Berlin
- Lazard Brothers of Paris
- Israel Moses Seif Banks of Italy
- Warburg Bank of Amsterdam
- Warburg Bank of Hamburg
- Lehman Brothers of New York
- Kuhn Loeb Bank of New York
- Goldman, Schs of New York
- Chase Manhattan Bank of New York
In all, there are about 300 VERY POWERFUL, partly foreign individuals
that owns the FED.
2. Although the FED is required to give back most of its PROFITS back
to the Treasury Dept., there is NO ORGANIZATION that has the
power to AUDIT the FED (not even the Congress or the IRS).
This creates a HUGE opportunity for "creative accounting" to
hide the profit that ROBS the US Tax Payers Hundreds of Billions
of Dollars annually.
3. Every year, a few Congressmen introduced a legislation to AUDIT
the FED, and every year, the legislation is defeated.
The owners of the FED is the most powerful, invisible
lobbying power there is.
4. The owners of the FED own the controlling interests in ALL major
media in the US. Rockefeller, through Chase Manhattan bank,
controls CBS and ABC and 28 other broadcasting firms. Each
of the other owners of the FED also have controlling
interest in the US media. This explain why the media have
been silent about the FED scam. The FED fraud is the biggest
and longest cover-up in the US today.
5. According to Article 1, Section 8 of the Constitution, the US Congress
has the power to print money (The Congress shall have the power...
...to coin money, regulate the value thereof, and of foreign coin,
...). According to the Supreme Court, the Congress can not transfer
its power to other organization like the FED.
HISTORY OF THE FED
After several attempts to push the Federal Reserve Banking Act through
Congress, a group of bankers funded and staffed Woodrow Wilson's campaign
for President. In 1913, Nelson Aldrich, maternal grandfather to the
Rockefellers, pushed the Federal Reserve Act through Congress just before
Christmas, when most Congressmen were on vacation. Naturally, president
Wilson passed the Act when he was elected as a pay back to the bankers.
HOW THE OWNERS OF THE FED PROFIT AT OUR EXPENSE
The US goverment runs a $400 billion deficit annually. To cover this,
the US goverment issues bonds which are bought by the FED.
Since the FED has the POWER TO PRINT MONEY, it can buy any amount of the US
Government bonds at almost NO COST, save for the expense of printing money
(~3 cents/$100).
At this point, the owners of the FED already profit $99.97 for every 3c they
invested to print the money. Basically, they exchange something that costs
almost nothing to them with the US Government Bonds.
Since the FED can NOT be AUDITTED by the IRS (or even by Congress), most
of this profit can go anywhere the FED owners want to. BTW, did I mention
that the profit is TAX-FREE?
After buying the bonds, the owner of the FED can either:
1. Keep the bonds, and collect the interest the US Government now OWES them.
2. Sell the bonds to the US Tax Payers or foreigners.
In either case, the FED owners have profitted $99.97 for every 3 cents it
invested to print the money. Remember, the FED is a PRIVATELY OWNED
corporation, just like the Federal Express. The profit of the FED goes to
the FED owners.
The US Government now owes the FED owners the interest on those bonds.
Remember that the FED owners DO NOT EARN the bonds. They simply PRINT the
money to buy the bonds. In other words, they created money out of thin air,
and exchange it for the interest bearing bonds.
In order to pay for the bonds' interest, the US Government taxes the US
population.
When a US Citizen holding US Government bonds receives his/her return of
investment on the bonds, essentially the money he/she receives is the
tax money he/she is paying to the Government.
When the OWNERS of the FED receives the interest on the BONDS they're
holding, they are receiving that money for FREE (save the initial 3cent/$100
investment to print the money)! Not only that, the FED owners receive the
money TAX FREE.
Under the LAW, the FED is REQUIRED to RETURN its PROFIT back to
the US Treasury. However, NEITHER the Congress NOR the IRS have the POWER
to AUDIT the FED. The FED has used this obvious loophole to profit
via 'creative accounting'.
Consider this: every year, the FED profits by hundreds of billions of
dollars by buying US Government Bonds. Yet it only returns ~$20 billion
to the US Treasury. The rest of the profit has been spent as
"Operational Expenses".
The FED expects us to believe that the FED operational expenses amounts to
$100's billion dollars annually!!!
The truth is, those profits were spent as "DIVIDENDS TO SHAREHOLDERS"!!!!
Year after year, the FED owners bleed the US Tax Payer dry by hundreds of
billions of dollars. Keep this going, and the US will go bankrupt in
a few more years. Small wonder why the National Debt is increasing at
its current rate.
WHY THE FED SHOULD BE ABOLISHED
1. The US Congress has the option to buy back the FED at $450 millions (per Congressional Records). When the Congress does this, it will own back the billions of US Government Bonds held by the FED. The US Government will actually PROFIT by buying back the FED! Also, the US government no longer has to pay interests to the FED owners on those bonds.
2. Through their ownerships in the FED, FOREIGN POWERS CAN and WILL
influence the US economy. By controlling our interest rates and
money supply, they can actually create economic disaster
in the US, should the US disagree with them.
3. Although the FED directors must be confirmed by the Senate, the awesome
lobbying power of the FED owners makes this process meaningless.
The owners of the FED can and will put whoever they wish in the
position.
4. Abolishing the FED will lead to lower inflation.
At this moment, the FED prints as much money as needed to buy the
US Government Bonds. Since the FED prints this MONEY out of THIN
AIR, this leads to an INCREASE of MONEY SUPPLY, WITHOUT increase in
GOODS/SERVICES. This, as all of us know it, leads to INFLAFION.
If the general public buy those bonds with money that
they EARNED by providing GOODS/SERVICES, the money supply level
is contant in relation to the goods/services level. Thus, there
is no inflationary pressure from selling these bonds.
5. Abolishing the FED will reduce the national debt level.
By buying back the FED at $450 millions, the US Government will buy
back the billions of dollars of bonds held by the FED. Thus,
the net effect is a reduction in national debt. After buying back
the FED, the US Government does not have to pay interest on those
bonds it buys back, further reducing the national debt.
6. Abolishing the FED will lead to eventual balance budget.
Today, even if the US Economy only grows by a meager 2%/yr,
the US Government should be able to put 2% of US-GDP dollars into
circulation WITHOUT INFLATION.
Consider, if the goods/services grow by 2% and the money supply grows
by 2%, the ratio of goods/services vs. money supply remains constant.
Thus, no inflation is created.
The government can use this extra money supply to fund its project
without raising taxes.
As long as the government does not print money more than the goods
and services available in the US, there will be no inflationary
pressures.
This had in fact been done with Executive Order 11110 of President
Kennedy. Kennedy ordered the Treasury Dept. to print a US GOVERNMENT
NOTES (vs. FEDERAL RESERVE NOTES). In effect, Kennedy bypassed the
FED by making the Treasury Department printed REAL US MONEY, instead of
selling bonds to the FED for almost free.
The sad fact is, the US Government does not do this anymore. Instead,
the US Government sell bonds to the FED, which buys those bonds
using money they don't earn. Thus, the US Government must
now pay interest on those money that it "borrows" from the FED.
7. By point (6) above, the US Government can actually reduce taxes
on everybody since it has more interest free money to spent
in the amount equal to the growth of the US GDP. KEEP IN MIND,
THIS MONEY WILL NOT CAUSE INFLATION, since the money is printed
along with the growth of the goods and services.
What you can do to save the United States of America
The FED should either be AUDITTED every year, or be abolished. I have done
my part providing this information. It is up to you to decide the future
of the US economy. Please do the followings:
1. DO YOUR OWN RESEARCH!!!!
If everything that I wrote here sounds too far fetched to be true,
I challenge everyone of you to do your own research, and see for
yourself.
Recommended literatures:
- Encyclopaedia Britannica.
- Congressional Record
- "The Federal Reserve Bank" by H.S. Kenan
- "Repeal the Federal Reserve Bank" by Rev. Casimir Frank Gierut
- "The Secrets of the Federal Reserve" by Mullins
when you are sure about the facts,
2. Call your Congressman and tell him to support the legislation to AUDIT
the FED.
3. Call your representatives and ask them to support legislation introduced
by Congressman Henry Gonzales to repeal the Federal Reserve Act
of 1913.
4. Push for your home states to introduce and pass a legislation to end
the FED scam. The following states have already done so:
Arizona, Washington, Arkansas, Idaho, Oregon, Indiana, and Texas.
Even if you live in these states, contact your representatives
and tell them to support the legislation. THEY WILL LISTEN if you
care to TELL THEM!!!
5. Ask your STATE and COUNTY government to abolish the FED. Since the FED
is CONSTITUTIONALLY ILLEGAL, it MUST be abolished. Ask your
state/county governments for the proper paperworks.
If the US Congress refuses to abolish the FED, your STATE/COUNTY
governments can do it.
6. Collect signature on petitions calling for the end of the FED.
7. Tell friends and family about this fraud, and ask them for supports. Secrecy is the FED's main strength. Since the media has been quiet, no one even notice this FRAUD that goes on for decades. Now it is up to the tax payer to be informed. Inform everyone you know about this, and be organized!!!
8. Contact:
America Betrayed
Center for Action
652 N. Glenview
Nesa, AZ 85213
9. Contact:
National Committee to Repeal the Federal Reserve Act
P.O. Box 1205
Middleburg, IL 60599
10. This article maybe reproduced and distributed freely WITHOUT changes.
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