What is the Fed and why do we have it?
The FED is a central bank. Central banks are supposed to implement a country's fiscal policies. They monitor commercial banks to ensure that they maintain sufficient assets, like cash, so as to remain solvent and stable. Central banks also do business, such as currency exchanges and gold transactions, with other central banks. In theory, a central bank should be good for a country, and they might be if it wasn't for the fact that they are not owned or controlled by the government of the country they are serving. Private central banks, including our FED, operate not in the interest of the public good but for profit.
There have been three central banks in our nation's history. The first two, while deceptive and fraudulent, pale in comparison to the scope and size of the fraud being perpetrated by our current FED. What they all have in common is an insidious practice known as "fractional banking."
Fractional banking or fractional lending is the ability to create money from nothing, lend it to the government or someone else and charge interest to boot. The practice evolved before banks existed. Goldsmiths rented out space in their vaults to individuals and merchants for storage of their gold or silver. The goldsmiths gave these "depositors" a certificate that showed the amount of gold stored. These certificates were then used to conduct business.
In time the goldsmiths noticed that the gold in their vaults was rarely withdrawn. Small amounts would move in and out but the large majority never moved. Sensing a profit opportunity, the goldsmiths issued double receipts for the gold, in effect creating money (certificates) from nothing and then lending those certificates (creating debt) to depositors and charging them interest as well.
Since the certificates represented more gold than actually existed, the certificates were "fractionally? backed by gold. Eventually some of these vault operations were transformed into banks and the practice of fractional banking continued.
Keep that fractional banking concept in mind as we examine our first central bank, the First Bank of the United States (BUS). It was created, after bitter dissent in the Congress, in 1791 and chartered for 20 years. A scam not unlike the current FED, the BUS used its control of the currency to defraud the public and establish a legal form of usury. This bank practiced fractional lending at a 10:1 rate, ten dollars of loans for each dollar they had on deposit. This misuse and abuse of their public charter continued for the entire 20 years of their existence. Public outrage over these abuses was such that the charter was not renewed and the bank ceased to exist in 1811.
The war of 1812 left the country in economic chaos, seen by bankers as another opportunity for easy profits. They influenced Congress to charter the second central bank, the Second Bank of the United States (SBUS), in 1816.
The SBUS was more expansive than the BUS. The SBUS sold franchises and literally doubled the number of banks in a short period of time. The country began to boom and move westward, which required money. Using fractional lending at the 10:1 rate, the central bank and their franchises created the debt/money for the expansion.
Things boomed for a while, then the banks decided to shut off the debt/money, citing the need to control inflation. This action on the part of the SBUS caused bankruptcies and foreclosures. The banks then took control of the assets that were used as security against the loans.
Closely examine how the SBUS engineered this cycle of prosperity and depression. The central bank caused inflation by creating debt/money for loans and credit and making these funds readily available. The economy boomed. Then they used the inflation which they created as an excuse to shut off the loans/credit/money.
The resulting shortage of cash caused the economy to falter or slow dramatically and large numbers of business and personal bankruptcies resulted. The central bank then seized the assets used as security for the loans. The wealth created by the borrowers during the boom was then transferred to the central bank during the bust. And you always wondered how the big guys ended up with all the marbles.
Now, who do you think is responsible for all of the ups and downs in our economy over the last 85 years? Think about the depression of the late '20s and all through the '30s. The FED could have pumped lots of debt/money into the market to stimulate the economy and get the country back on track, but did they? No; in fact, they restricted the money supply quite severely. We all know the results that occurred from that action, don't we?
Why would the FED do this? During that period asset values and stocks were at rock bottom prices. Who do you think was buying everything at 10 cents on the dollar? I believe that it is referred to as consolidating the wealth. How many times have they already done this in the last 85 years?
Recently,(Sept. 5,2003) Congressman Ron Paul, who is on the Financial Services Committee, which oversees the entire financial services industry, including the securities, insurance, banking, and housing industries, Rep. Ron Paul of Texas serves as the vice-chairman of the Oversight and Investigations subcommittee that oversees the work of the Federal Reserve, the Treasury, the SEC, and other financial services regulators. This is what he said before the U.S. House of Representatives on Sept. 5th:
"We own the printing press and create as many dollars as we please. These dollars are used to buy federal debt. This allows our debt to be monetized and the spendthrift Congress, of course, finds this a delightful convenience and never complains. As the dollars circulate through our fractional reserve banking system, they expand many times over. With our excess dollars at home, our trading partners are only too happy to accept these dollars in order to sell us their products. Because our dollar is relatively strong compared to other currencies, we can buy foreign products at discounted prices. In other words, we get to create the world's reserve currency at no cost, spend it overseas, and receive manufactured goods in return."
It's called fractional reserve banking, as Congressman Ron Paul pointed out, and all lenders who are part of the Federal Reserve System do the same thing. Only they don't tell you what they do with your note, and that's not full disclosure. Why? Because by law, if the actions of either party to an agreement significantly alter the cost or risk as originally represented, he is obliged to inform the other party. Lenders NEVER tell "borrowers" that their promissory notes are instant cash cows, that they use your note to fund your own loan, or that they incur little risk.
Listen to what Congressman Louis T. McFadden of Pennsylvania stated on the floor of the House of Representatives on May 23, 1933 about the Federal Reserve. Due to his having served as Chairman of the Banking and Currency Committee for more than 10 years, Congressman McFadden was the best posted man on these matters in America and was in a position to speak with authority of the vast ramifications of this gigantic private credit monopoly. Because these speeches are set out in full in the Congressional Record, they carry weight that no amount of condemnation on the part of private individuals could hope to carry.
Congressman Louis McFadden said, "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, hereinafter called the FED. They are not government institutions. They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers." McFadden was eventually assassinated.
This next quote should stir your heart:
Rothschild Brothers of London (one of the private foreign families that are owners of the Federal Reserve Bank) said, "The few who understand the system will either be so interested in its profits, or so dependent on its favors that there will be no opposition from that class. The great body of people, mentally incapable of comprehending the tremendous advantages will bear its burden without complaint."
Another member of the Rothschild family by the name of Mayer Amschel Bauer said, "give me control of a nation's money and I care not who makes the laws."
Just before he died, Woodrow Wilson is reported to have stated to friends that he had been "deceived", referring to the Federal Reserve Act that had been passed during his Presidency. He said, "I am a most unhappy man. I have betrayed my country. A great industrial Nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the Nation and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the world - no longer a Government of free opinion no longer a Government by conviction and vote of the majority, but a Government by the opinion and duress of small group of dominant men."
On September 5, 2003 Congressman Ron Paul said before the U.S. House of Representatives:
"All great republics throughout history cherished sound money. This meant that the monetary unit was a commodity of honest weight and purity. When money was sound, civilizations were found to be more prosperous and freedom thrived. The less free a society becomes, the greater the likelihood its money is being debased and the economic well-being of its citizens diminished"
And then Congressman Ron Paul goes on to state that:
"Yet here we are today with a purely fiat monetary system, managed almost exclusively by Alan Greenspan. The Founders were well aware of the biblical admonitions against dishonest weights and measures, debased silver, and watered-down wine. The issue of sound money throughout history has been as much a moral issue as an economic or political issue."
We had one President who tried to bring down The Federal Reserve Bank. Because of his efforts, he was assassinated.
--------------------
If you want a free lunch, you need to learn how to eat good advice.
|
Threaded
Previous
Index
Next
Unfolding Nature: Being in the Implicate Order 
Spores for European Microscopy
FrankieJustTrypt 
bert 
Edit 
Reply 
Ancalagon
FrankieJustTrypt
mjshroomer
gettinjiggywithit
Rono
gregorio
wingnutx