The Federal Reserve is neither Federal nor a Reserve! It is one of the Greatest Scams of Alltime!

Episode 10: Some Fed Facts!

• In 1992 taxpayers paid the Fed banking system $296 billion in interest on money which the Fed created out of "thin air" with no hard assets such as gold, silver or other precious metals to back it up. Nice scam!
• 54% of personal federal income taxes goes to pay this interest. 54% less money to directly benefit American citizens.
• The Fed's books are not open to the public. Why not?
• Congress and the IRS do not have access to the financial records of the Fed. Why does the IRS have the right to know everything about you?
• Congressman Wright Patman was Chairman of the House of Representatives Committee on Banking and Currency for 40 years. For 20 of those years he introduced legislation to repeal the Federal Reserve Banking Act of 1913. The Act still stands today. Why???
• Congressman Henry Gonzales introduces legislation to repeal the Federal Reserve Banking Act of 1913 nearly every year. It's always defeated. Why????
• The Fed is illegal as per Article 1, Section 8 of the United States Constitution. Why does Congress refuse to acknowledge that fact?
• The 16th Ammendment, giving Congress the right to tax you to death, was also enacted in 1913 within months of the Fed's inception. Yet not a single solitary state has ever legally ratified the 16th Ammendment. So just how legal is personal income tax?
• The profit of the Fed is not taxed. So why are you taxed?
• Section 7 of the Federal Reserve Act, passed December 23, 1913 states that much of the profit of the Fed must flow back into the U.S. Treasury. Remember my post on the Unholy 7 meeting at Jekyll Island where some members were upset that too much power was being given to the government and Paul Warburg said; Fuggedahboudit ... lets get the Fed Act passed first and then we'll fix it later to our own liking? Well they did!! In 1959 new legislation was passed to allow the Fed to divert profits to private commercial banks substantially cutting profit flowing to the Treasury. Why did Congress allow this legislation to pass? How many government officials became rich on that two-step?
• The Federal Reserve Banks work on a 10% reserve requirement. For example;
• (1) Let's say the Fed creates $1,000,000 in "Fiat Money" (currency that has no assets whatsover to back it up), except the blessing of Congress, and distributes it to banks.
• (2) The bank "holds" 10% ($1000,000) in reserve as operating capital and then loans the rest out, lets say for the purposes of easy math, at a 10% interest rate.
• (3) The bank then earns $90,000 in interest payments and now also has the $900,000 which it originally loaned. Remember that you are paying interest on money that was created out of thin air, with no hard asset backing, and at absolutely no cost to the Fed except for the paper and ink.
• (4) The bank now deposits the $900,000, retains 10% ($90,000) as operating capital and loans $810,000 at 10% interest.
• (5) After just 2 cycles the bank has $190,000 in operating reserves and has earned $171,000 in interest on money that was created out of thin air. Even David Copperfield would be unable to do this.
• Inflation used to be about 1% every 10 years before there was a Federal Reserve System. After the creation of the Fed in 1913 inflation has skyrocketed to 1,779%
• The Congress will not allow an individual citizen to do what it allows the Fed to do. That is to create illegal U.S. money out of thin air, force people to use it, and pay interest to the Federal Reserve by charging you income tax.
• In 1992 Americans paid $296 billion in interest on government debt which is owned by the Fed.
• In 2006 Americans paid over $352 billion in interest on government debt which is owned by the Fed.
• How many trillions of dollars in total have Americans paid in interest on government debt to the Fed just between the years of 1992 to 2006 alone? How about between the years 1913 and 2008? Now that's heavy duty inflation ... a 1,779% increase in inflation over the 95 years between 1913 and 2008 now seems quite logical.

The Federal Reserve is neither Federal nor a Reserve! It is one of the Greatest Scams of Alltime!

Episode 6: The Plan, Part 2

Step 2 of the Plan was to sell the concept to the American public.

The first draft of the Federal Reserve Act, when presented to Congress, was sponsored by Nelson Aldrich and was called the Aldrich Bill.

Paul Warburg had cautioned Aldrich not to sponsor the bill because Warburg felt that Aldrich was too closely identified with big business and that Congress would vote the bill down. Warburg was right. The bill in its presented form died on the floor.

The Unholy 7 took the bill back, moved some of the paragraphs around, and removed Aldrich's name. They found two Democrats, Carter Glass in the House and Senator Robert Owen, himself a banker, to sponsor what would be called the Glass-Owen bill.

Aldrich and Vanderlip then began to give speeches and interviews to newspaper reporters condemning the bill as "ruinous to banking and terrible for the country." By the time the average guy on the street read Aldrich and Vanderlip's comments, the thinking amongst America became, that the Glass-Owen bill must be a good thing because the big bankers were opposed to it. Another brilliant strategy!

Meanwhile back at the ranch, the Unholy 7 were digging ever deeper into their bag of deceptive tricks. They began paying the costs of creating "grassroots study clubs" across the country. They sponsored these clubs, held public meetings and printed brochures and pamphlets extoling the virtues of the Federal Reserve System.

They gave large sums of money to some of the more prestigious universities in America to create new departments of economics. They hand picked their own people to be professors to head up these departments, who then in turn, gave speeches and wrote essays promoting the wisdom and benefits of the Fed.

Paul Warburg then further toned-down the Glass-Owen bill because he felt that the new legislation had to be palatable to as many people in government as possible. In his opinion this was the crucial time during which the boat of common sense could not be rocked.

The other members of his group were upset because they felt that Warburg's toned down legislation was giving up too much of the power and control which the bankers were seeking. Warburg's rationale was elegantly simple. The main objective was not to try to get everything which they had wanted coming straight out of the gate for that would not be possible. Rather it was Warburg's strategy to get the bill passed into law first, then "fix it up later to their liking."

Since the Federal Reserve Act has been passed it has been ammended over 100 times with each amendment greatly expanding the power and reach of the Fed.

The last hold-out against the bill was William Jennings Bryan, the head of the Populist Movement, who was deeply concerned that the bill would ruin the nations money supply. But when he saw Paul Warburg's watered-down version of the bill, Bryan supported the bill never dreaming that once the bill was passed it would be continuously amended.

The Unholy 7 were masters at their game. They understood people, politics and mass psychology. And they played each card perfectly.

Popular support was finally gained for the bill and on December 22, 1913 the bill was passed by Congress and the following day was signed into law by President Wilson.

The Federal Reserve had won the battle and America was now its prize!

Next - Episode 7: How the Fed Works.

The Federal Reserve is neither Federal nor a Reserve! It is one of the Greatest Scams of Alltime!

Episode 5: The Plan

In the years prior to the Fed a lot of banks were folding. People were losing their money and investments. There were runs on the banks and the banks would not give people their money back.

In particular, people were extremely concerned about what was refered to as the "money trust" or the concentration of incredible wealth in the hands of a few large banks on Wall Street.

For politicians the "money trust" represented a golden opportunity. If they campaigned against it chances were good that they would be elected.

Enter President Wilson. He campaigned hard against the "money trust." Problem was that he was "hand-picked" by the "money trust." He was financed by the "money trust." All of his key advisors and political cronies were part of the "money trust," and at the end of the day he sold out America. Who says that you can't buy yourself a President?

He didn't sell-out to the old "money trust" but rather to the new "money trust." For in 1913 after senator Nelson Aldrich, maternal grandfather to the Rockefellers and one of the unholy 7, pushed the Federal Reserce Act through Congress just before Christmas when much of Congress was on vacation, President Wilson passed the Fed into reality.

Later President Wilson was to remorsefully say, "I have unwittingly ruined my country!"

Now here is the plan which created the Fed. The unholy 7 wanted to create a central banking system in America. It's an ingenious concept that was created in Europe in the 16th century and perfected with the formation of the Bank of England in 1694. Later in this series I'll explain just how central banking works and why it is so dangerous. But suffice it to say for now that under a central banking system it is the bankers and the government who "own your butts" lock, stock, and barrel.

The main problem that the unholy 7 faced on Jekyll Island was what should they call the Central Banks so that nobody knew that it was a Central bank. Congress was already on record as saying that they did not want a central bank in America.

This is why Paul Warburg was so valuable, because he had the detailed technical knowledge of how central banks operate and hence had the expertise to strategize and guide the project to a successful conclusion.

The first step in their strategy was to give central banking a new name...The Federal Reserve System. Federal ... because it sounded like it was the government and not a cartel of powerful bankers. Reserve ... because it sounded like there were reserves of somekind. And System ... the most important word of all. Remember that people were upset about the "money trust", the concentration of financial power in New York. The word System was specifically chosen to sell the impression that under this new "bank reform" a system of regional banks would diffuse the power of the big banks on Wall Street.

But at the end of the day, it was to be the bankers and not the United States government which would issue and control America's money supply.

There was no federal component. There were no reserves. There was no system for the difusion of financial power on Wall Street and the Federal Reserve Banks were not even banks. A totally brilliant strategy.

Next- Episode 6: The Plan Part 2

The Federal Reserve is neither Federal nor a Reserve! It is one of the Greatest Scams of Alltime!

Episode 4: What Exactly is the Federal Reserve?

Some people still think that the Federal Reserve is a U.S. government institution. Nothing could be further from the truth. The Federal Reserve System is not a Government institution, department or agency!!

• It is a system of 12 privately-owned "federal" banks who have been granted their power by the United States government to create money, then loan that money back to the government charging interest.
• the government then charges you income tax to pay the interest on the debt.
• The Federal Reserve Act was passed in 1913.
• The Sixteenth Ammendment, which gave Congress the power to collect income taxes was also passed in 1913.
• The Fed is politically independent and the federal government does NOT HAVE DIRECT OVERSIGHT over what the Fed does.
• From its founding to this present day, the Fed has NEVER undergone a complete INDEPENDENT AUDIT. Congress has from time to time requested that the FED voluntarily submit to a complete audit, and EVERYTIME IT REFUSES.
• The Fed Chairman can say anything he wants to Congress and Congress has to accept what he says, because verification is not always possible because the Fed keeps certain records secret.
• Although the Fed is PRIVATELY OWNED it DOES NOT PAY a single solitary penny in business or property TAXES.

Next...Episode 5: The Plan