Some Notions about the Federal Reserve
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Some Notions about the Federal Reserve
Rabin's wife "had her nerve" criticizing John Kennedy's son for exercising
his First Amendment rights. "After all," there is a good chance the
Zionist were responsible for the murder of his father.
Black's Law Dictionary defines the "Federal Reserve System" as,
"Network of twelve central banks to which most national banks belong
and to which state chartered banks may belong. Membership rules
require investment of stock and minimum reserves."
Privately-owned banks own the stock of the Fed. This was
explained in more detail 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.
Similarly, the Federal Reserve Banks, though heavily
regulated, are locally controlled by their member banks.
Taking another look at Black's Law Dictionary, we find that
these privately owned banks actually issue money:
Federal Reserve Act. Law which created Federal Reserve banks
which act as agents in maintaining money reserves, issuing money
in the form of bank notes, lending money to banks, and
supervising banks. Administered by Federal Reserve Board(q.v.).
The FED banks, which are privately owned, actually issue, that
is, create, the money we use. In 1964 the House Committee on
Banking and Currency, Subcommittee on Domestic Finance, at the
second session of the 88th Congress, put out a study entitled "Money
Facts" which contains a good description of what the FED is:
The Federal Reserve is a total money-making machine. It
can issue money or checks. And it never has a problem of
making its checks good because it can obtain the $5 and $10
bills necessary to cover its check simply by asking the
Treasury Department's Bureau of Engraving to print them.
As we all know, anyone who has a lot of money has a lot of
power. Now imagine a group of people who have the power to create
money. Imagine the power these people would have. This is what the
Fed is.
No man did more to expose the power of the Fed than Louis T.
McFadden, who was the chairman of the House Banking Committee back
in the '30's. Constantly pointing out that monetary issues
shouldn't be partisan, he criticized both the Herbert Hoover and
Franklin Roosevelt administrations. In describing the Fed, he
remarked in the Congressional Record, House pages 1295 and 1296 on
June 10, 1932, that:
Mr. Chairman, 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. The
Federal Reserve Board, a Government 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. The
depredations and the iniquities of the Federal Reserve Board
and the Federal reserve banks acting together have cost this
country enough money to pay the national debt several times
over. This evil institution has impoverished and ruined the
people of the United States; has bankrupted itself, and has
practically bankrupted our Government. It has done this
through the maladministration of that law by which the Federal
Reserve Board, and through the corrupt practices of the moneyed
vultures who control it.
Some people think the Federal reserve banks are United
States Government institutions. They are not Government
institutions. They are private credit monopolies which prey
upon the people of the United States for the benefit of
themselves and their foreign customers; foreign and domestic
speculators and swindlers; and rich and predatory money
lenders. In that dark crew of financial pirates there are
those who would cut a man's throat to get a dollar out of his
pocket; there are those who send money into States to buy votes
to control our legislation; and there are those who maintain an
international propaganda for the purpose of deceiving us and of
wheedling us into the granting of new concessions which will
permit them to cover up their past misdeeds and set again in
motion their gigantic train of crime.
Those 12 private credit monopolies were deceitfully and
disloyally foisted upon this country by bankers who came here
from Europe and who repaid us for our hospitality by
undermining our American institutions.
The Fed basically works like this: The government granted its
power to create money to the Fed banks. They create money, then
loan it back to the government charging interest. The government
levies income taxes to pay the interest on the debt. On this point,
it's interesting to note that the Federal Reserve act and the
sixteenth amendment, which gave congress the power to collect income
taxes, were both passed in 1913.
The incredible power of the Fed over the economy is universally
admitted. Some people, especially in the banking and academic
communities, even support it. On the other hand, there are those,
both in the past and in the present, that speak out against it. One
of these men was President John F. Kennedy. His efforts were
detailed in Jim Marrs' 1990 book, Crossfire:
Another overlooked aspect of Kennedy's attempt to reform
American society involves money.
Kennedy apparently reasoned that by returning to the
constitution, which states that only Congress shall coin and
regulate money, the soaring national debt could be reduced by
not paying interest to the bankers of the Federal Reserve
System, who print paper money then loan it to the government at
interest.
He moved in this area on June 4, 1963, by signing Executive
Order 11,110 which called for the issuance of $4,292,893,815 in
United States Notes through the U.S. Treasury rather than the
traditional Federal Reserve System. That same day, Kennedy
signed a bill changing the backing of one and two dollar bills
from silver to gold, adding strength to the weakened U.S.
currency.
Kennedy's comptroller of the currency, James J. Saxon, had
been at odds with the powerful Federal Reserve Board for some
time, encouraging broader investment and lending powers for
banks that were not part of the Federal Reserve system. Saxon
also had decided that non-Reserve banks could underwrite state
and local general obligation bonds, again weakening the
dominant Federal Reserve banks.
A number of "Kennedy bills" were indeed issued - the author
has a five dollar bill in his possession with the heading
"United States Note" - but were quickly withdrawn and destroyed
by Lyndon Johnson after Kennedy's death.
According to information from the Library of the
Comptroller of the Currency, Executive Order 11,110 remains in
effect today, although successive administrations beginning
with that of President Lyndon Johnson apparently have simply
ignored it and instead returned to the practice of paying
interest on Federal Reserve notes.
Today we continue to use Federal Reserve Notes, and the deficit is at an all time high.
The point we're trying to make with this is that the IRS taxes
you pay aren't used for government services. It won't hurt you or
the nation to legally reduce your tax liability. In fact, it will
help both. And remember. It's your money. You earned it.
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