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Federal Reserve is A Private Cartel

25 Jun 2008Print
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Article I, Section 8, Clause 5, of the United States Constitution says "Congress shall have the power to coin money and regulate the value thereof and of any foreign coins". But that is not the case. The United States government has no power to issue money, control the flow of money, or to even distribute it - that belongs to a private corporation registered in the State of Delaware - the Federal Reserve Bank.

The Federal Reserve System was established by a President Woodrow Wilson's decree in 1913. The premise used was to "supplant the dictatorship of the private banking institutions" and "to stabilize the inflexibility of national bank note supplies". The previous system of banking was "feudal" in nature, in which private bankers controlled communities and issued their own bank notes. They had little regulations concerning reserve assets and loan policies.

As soon as Federal Reserve was established, a new currency was issued - Federal Reserve notes, which at the time were based on the gold standard. The Federal Reserve (also called The Fed ) was to unite and supervise the entire banking system, control the expansion or contraction of currency, and regulate the flow of money to the commercial banks through the establishment of 12 Federal Reserve Banks.

But what was established looked just like a Cartel that had banking interest in its center.

The Fed is controlled by private banking interest and by Presidential appointment - but it is still a private organization and not a government entity. In 1913, President Wilson's creation of the Federal Reserve System established a three-tier monetary system in the United States - the holders of money (public, government, business and institutions); the commercial banks that borrow from the public and issue loans; and the central bank or Federal Reserve that has a monopoly on the issuing of money. The Federal Reserve is technically owned by the commercial banks.

FEDERAL RESERVE CONTROLS THE MONEY, NOT THE GOVERNMENT

The monetary policy of the United States is the domain of the Federal Reserve Bank and not the government. This process is in direct contradiction of the U.S. Constitution that reposes the responsibility of the monetary system with the Congress of the United States.

On April 27, 1936, hearings were held by the House Committee on Banking and Currency. The preamble of the bill - HR 9216 of the Seventy-fourth Congress, states, "The committee had under consideration the bill (HR 92163 to restore to Congress its constitutional power to issue money and regulate the value thereof; to provide monetary income to the people of the United States at a fixed and equitable purchasing power of the dollar, ample at all times to enable the people to buy wanted goods and services at full capacity of the industries and commercial facilities of the United States; to abolish the practice of creating bank deposits by private groups upon fractional reserves, and for other purposes."

The Congress also attempted to issue non-interest bearing Treasury Notes. A Federal Credit Commission linked to the Secretary of the Treasury was the goal of Congress. The concern was that banks were issuing loans without the backing of real deposits and that it was controlling money based on the price it attracted on international money markets or by the amount of interest they could charge. The Congress wanted to withdraw from the banks the right to issue credit on fractional reserves, and leave the banks the right to issue credit on account of actual deposits, which means that permanent money will be loaned not bank manufactured money.

The bill would have eliminated the private manufacture of money - a direct contravention of the mandate of the Constitution, which places the right to coin money in the hands of Congress.

PAYING OFF THE NATIONAL DEBT

The bill would have allowed the nation to pay off its national debt and stay out of debt. In one year's time, with this bill, the national debt could have been paid, and without any tax increases, plus it would have allowed for full employment. You could have guessed that this bill never became law in 1936 - the banking interest was too powerful.

KENNEDY TRIED TO CHANGE IT

In 1963, President John Kennedy wanted an end to the Federal Reserve System, which had a strangle-hold on the United States and virtually the world. By a simple stroke of the pen, President Kennedy dismissed the Federal Reserve System and ordered the U.S. government to restore its Constitutional-mandate of controlling the money. President Kennedy was dead three weeks later. When President Lyndon Johnson took office, he immediately rescinded Kennedy's order and The Fed won another round.

FOREIGN BANKERS OWN MAJORITY OF FEDERAL RESERVE

More that half the shareholdings in the Federal Reserve Bank are controlled by large New York City banks, including National City Bank, National Bank of Commerce, First National Bank, Chase National Bank, and Marine National Bank. When Rockefeller's National City Bank merged with J.P. Morgan's First National Bank in 1955, the Rockefeller group owned 22% of the shares of the Federal Reserve Bank of New York, which in turn holds the majority of shares in the Federal Reserve System - 53%. But who really owns what? Here are the top controllers of the Federal Reserve Bank:

1. Rothchild banks of London and Berlin.

2. Lazard Brothers Banks of Paris.

3. Israel Moses Seif Banks of Italy.

4. Warburg Bank of Hamburg and Amsterdam.

5. Lehman Brothers Bank of New York.

6. Kuhn, Loeb bank of New York.

7. Chase Manhattan Bank of New York, which controls all of the other 11 Federal Reserve Banks.

8. Goldman, Sachs Bank of New York.

This ownership combination has been challenged by the Federal Reserve Bank, but a study of Standards and Poors will verify the ownerships. This means that the controlling interest of United States national monetary system is foreign.

In 1797, John Adams wrote to Thomas Jefferson, "All the perplexities, confusion and distress in America arise, not from defects of the Constitution or Confederation; not from any want of honor or virtue, as much as downright ignorance of the nature of coin, credit and circulation."

In simple terms, the United States Government borrows money from the Federal Reserve Bank with interest. Here is how it works: The Government wants $1 billion. The Federal Reserve prints $1 billion - based upon no hard asset - and lends it to the Government at a high interest rate. The bank did not have the original money, it created it and made a bookkeeping entry - like you writing yourself a check without funds and cashing it. The Fed controls the flow of money, making it tight and creating unemployment or printing more than actually exists and creates inflation. It is, in essence, a paper corporation, which controls the entire economic well-being of the nation.

INFLATION

Let's say you placed a deposit of $10,000 into a bank. A bank now can lend this money. But not only that, a bank can lend more than it has in the vaults, often 9 times more, and will also allow you to withdraw the money. This is called Fractional-reserve banking. If a money is loaned out, and everyone comes to the bank to get their deposits, there is not nearly enough money in the Bank. The scary part is that usually out of bank's paper assets less than 10% is actual physical money.

Inflation is also generated is by the Fed. Government officials need money for various programs - this is how they get elected. They also don't want to raise taxes to get more money - this is how they not get reelected. So the Government borrows money from The Federal Reserve, which gets created out of thin air and bears an interest. How does Government pay The Fed back? They just borrow more from them. Clearly, these policies cannot be sustained for too long - the time will come when the Government cannot borrow enough to pay interest, or when hyperinflation turns currency into a useless paper. This time may be NOW.

Links:
  • A Circuit Court in 1982 Lewis vs. United States ruled that Federal Reserve is private, Court Ruled Fed is Private


  • Parts of the article are Copyright FreeAmerica and Harry V. Martin, 1995

     


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  • news comments  Readers' Comments

    :+: The IVAMU Standard for Estalishing the Value of Money:
    author: Kenneth Lowndes 9/17/2011 12:40:16 AM
    URL: http://www.ivamu.com/ivamupressrelease.htm PRESS RELEASE: FOR IMMEDIATE RELEASE SUBJECT: New invention: IVAMU = Intrinsic Value Added Monetary Unit provides Answers to Loss of Currency Values World-Wide A Brand New Currency Invention-- A New Standard for Value of Money "Divers weights, [and] divers measures, both of them [are] alike an abomination to the LORD." --Proverbs 20:10 "Declare ye among the Nations, and Publish, and set up a Standard; Publish, [and] conceal not:" -- Jeremiah 50:2 IVAMU is a Brand New Currency and CONTAINS real precious metal, such as gold, silver and or platinum. It does not need to be declared as "backed by gold," because this Paper Money contains flat and flexible precious metal--with thickness measured in microns within the currency itself. Claims of being 'backed by gold' are always suspect due to historical accounts of 'accidental' invention of what is called “fiat money” in which bankers permitted themselves to issue MORE currency than could be "backed by -- gold!" Born of greed and concealed, it worked well for the charging of interest on loaned money until too many people DEMANDED their precious metals be DELIVERED BACK to the rightful owners or depositors. What is about to happen today is a good example. JP Morgan is selling un-backed silver contracts which certainly will result in a coming “Bank Holidays” once the people catch on to the banking and investment SCAM. Far better, IVAMU Currency *contains those precious metals! The designer of the concept, Ken Lowndes, says, “Some IVAMU may 'only' contain silver, while larger denomination currencies will contain gold or platinum. Or in combination. Some IVAMU denominations may even contain two or more metals. This answers the problem today of paper currency-backed-by-nothing except more paper.” He goes on to say, “The C-O-N-fidence game is over. We and our future generations will NOT be paying off the wicked Bankers! We will NEVER, EVER be their SLAVES. “ For further information contact: Ken Lowndes @ 626-358-0108, or @ www.IVAMU.com/pg1.htm --30 -------------------------------------- IN BRIEF: Monopolized Private Central Banks have created enormous problems - (the Federal Reserve is no more "federal" then is Federal Express) - not only of inflation, but also in how it depreciates the quality of human life itself. 
     
    If you Want Congress to work together better put the Monetary Policy back in the hands of the US people
    author: hungry4food 10/18/2010 4:10:47 PM
    If you want Congress to work together for the good of we the people , make them accountable for our Monetary Policy again and they will be devoted to We the people . The silly argument that the Congress would Gridlock over this very Issue is without substance now because as the RECORD shows no sound Money POLICY has BEEN Accomplished over the last 97 years of the FED being able to Shield Congress from the Demands of the People of the USA to insist on proper wealth creation and distribution methods that would have originated from the will of the Voice of WE the People , if In deed the USA MONETARY POLICY was in the Hands of the Citizens and voting by , for and of the people were reflected in the Monetary Policy !!!!! The FED has NO RECORD of ACCOMPLISHMENT to RUN ON , because anyone Can do what they do , Print Money , but I can tell you this the will to bailout the Financial Central banks would have been done this last Time way differently , and the American people would have Been Better off for it . Like simply those Institutions that got trapped in their own doing would have divvied up their assets to some New Managers and Life would have Went on without all this Debt accumulation , its just that all those Big Fat Cats would have had to give up their Country Club memberships to some NEW members that took over their spots , and tell Me sweet Jesus why would that have been such a bad thing ??? God Bless the USA the Land of the FREE and Home of the BRAVE and those who give their LIVES , their Limbs for we the people to Keep Starting a new in the that IS a Utopia already !!!!!! http://www.youtube.com/watch?v=L-cR0i2YP3A http://www.archives.gov/exhibits/charters/constitution_transcript.html Restore Article 1 Section 10 of the US sound money rule under the Constitution and put the American people back in charge of these future by having their Monetary Policy back under their control through their elected congress and they UPHOLD Sound Money for America! Support HR 1207, S.604 and HR 833! END the FEDERAL RESERVE before this gets any farther . and restructure the tax code to accommodate the revaluing of the US economy to be more competitive with foreign markets should be considered . The bill would have eliminated the private manufacture of money - a direct contravention of the mandate of the Consti 
     
    Obama losing control of US Economic & National Security
    author: hungry4food 10/17/2010 3:25:07 PM
    The Real Reason that Iran wants the BOMB: The 'NEW' War That Could Rocket Oil Past $220 Before 2011 OBAMA loses control of US SECURITY OIL set to explode in PRICE http://ning.it/aEeC1V Obama is Losing control of National Security in oil price http://ning.it/dfRW1G http://ning.it/cxurAL http://ning.it/9mLGq6 WE NEED TO DO THIS to regain our Economic and National Security and develop our supply http://ning.it/96wCq2 I BET THIS IS DESIGNED TO SUCK THE FEDERAL RESERVE Quantitative Easing Program MONEY THEY ARE GETTING READY TO PRINT AWAY IN OIL PRICE INCREASES as the Funds are allocated into Central banks the GREED to chase the rising price of oil will drag this Quantitative easing Money into the Open International OIL Markets , THIS IS WHY WE NEED TO END THE FED !!!! This video is MUST SEE.... It explains the Sunni vs. Shiite war that is about to explode between Iran and Saudi Arabia. http://www.youtube.com/watch?v=p0RuSyyBIRM 
     
     
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    Federal Reserve is A Private Cartel : Business, Finance