Monday, December 15, 2008
The Federal Reserve Bank (FED) – the US Central Bank - is neither “federal” nor does it have any “reserves”. In fact, the US Federal Reserve Bank (FED)- contrary to what people in the US and around the world have deceitfully been misled to believe since its fraudulent creation in 1913 - is not a "federal" US government institution, but a PRIVATE bank - whose shares are held by the largest international private banks ( see list below) - that was fraudulently created by Congress in 1913 through the Federal Reserve Act, that surrendered it the power to create and regulate the supply of money of the United States, contrary to and in direct violation of Article 1, Section 8 of the US Constitution, which strictly and exclusively grants Congress the power and the exclusive right " To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures" to be strictly backed by gold and/or silver ( Article 1. Section 10 No States shall make anything but gold and silver coin a tender in payment of debts) and " To provide for the Punishment of counterfeiting the Securities and current Coin of the United States."
As Louis McFadden, chairman of the House Banking and Currency Committee said:
“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.” Louis McFadden, chairman of the House Banking and Currency Committee
"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, hereinafter called the Fed. The Fed has cheated the Government of these United States and the people of the United States out of enough money to pay the Nation's debt. The depredations and iniquities of the Fed has cost enough money to pay the National debt several times over. .... This evil institution has impoverished and ruined the people of these United States, has bankrupted itself, and has practically bankrupted our Government. It has done this through the defects of the law under which it operates, through the maladministration of that law by the Fed and through the corrupt practices of the moneyed vultures who control it. " - Congressman McFadden on the Federal Reserve Corporation Remarks in Congress, 1934 Floor of the House of Representatives by the Honorable Louis T. McFadden of Pennsylvania. Mr. McFadden served as Chairman of the Banking and Currency Committee for more than 10 years. There were two assassination attempts against McFadden.
“The people did not know the Federal-Reserve Banks were organized for profit-making. They were intended to stabilize the credit and currency supply of the country. That end has not been accomplished. Indeed, there has been the most remarkable variation in the purchasing power of money since the System went into effect.” — Sen. Robert L. Owen
However, under the Federal Reserve Act, the privately-owned Federal Reserve Bank literally creates money out of thin air - by printing/counterfeiting fiat paper money ($US bills) and/or by electronically creating fiat money on a computer, which it then LENDS to the US government AT INTEREST, which US citizens are then illegally coerced to repay through direct income taxation, both in direct violation of the US Constitution.
As Congressman Charles A. Lindbergh clearly stated and warned:
“This act establishes the most gigantic trust on earth, such as the Sherman
Antitrust Act would dissolve if Congress did not by this act expressly create what
by that act it prohibited. When the President signs this act the invisible government
by the money power, proven to exist by the Money Trust investigation, will be legalized. The greatest crime of Congress is its currency system. The schemiest legislative crime of all the ages is perpetuated by this new banking and currency bill.” — Congressman Charles A. Lindbergh
“The banks — commercial banks and the Federal Reserve — create all the
money of this nation, and its people pay interest on every dollar of that newly created money. Which means that private banks exercise unconstitutionally,
immorally, and ridiculously the power to tax the people.”
— Congressman Jerry Voorhis
“If our nation can issue dollar bond, it can issue a dollar bill. The element that
makes the bond good makes the bill good, also. The difference between the bond and
the bill is that the bond lets the money broker collect (usury) . . . whereas the currency pays nobody but those who con-tribute . . . in some useful way.”
— Thomas A. Edison
"Issue of currency should be lodged with the government and be protected from domination by Wall Street. We are opposed to...provisions [which] would place our currency and credit system in private hands. - Theodore Roosevelt
The real truth of the matter is, as you and I know, that a financial element in the large centers has owned the government ever since the days of Andrew Jackson... -Franklin D. Roosevelt (in a letter to Colonel House, dated November 21, 1933)
And as Andrew Jackson rightly stated:
"If congress has the right under the Constitution to issue paper money, it was given them to use themselves, not to be delegated to individuals or corporations." -Andrew Jackson
The Primary Owners of the Federal Reserve Bank Are:
1. Rothschild's of London and Berlin
2. Lazard Brothers of Paris
3. Israel Moses Seaf of Italy
4. Kuhn, Loeb & Co. of Germany and New York
5. Warburg & Company of Hamburg, Germany
6. Lehman Brothers of New York
7. Goldman, Sachs of New York
8. Rockefeller Brothers of New York
"Here is how the owners of the FED profit at the expense of the American people.
The U.S. Government runs deficits annually in the billions of dollars, and lately in the trillions of dollars. Congress covers this by issuing government bonds which are bought by the FED. Since the FED has the power to print money, it can buy any amount of the U.S. Government bonds at almost NO COST, except for the small fee paid to the Treasury to print money (about 3 cents/$100).
This amounts to a profit to the FED owners of about $99.97 for every 3c they invested to print the money. Basically, they exchange something that costs almost nothing to them for the U.S. Government Bonds.
Since the FED can not be AUDITED by the IRS (or even by Congress), most of this profit can go anywhere the FED owners want it to go; and it is tax free.
After buying the bonds, the owner of the FED can either keep the bonds, and collect the interest the U.S. Government now owes them, or sell the bonds to the U.S. taxpayers or foreigners. In either case, the FED owners have received $99.97 profit for every 3 cents it invested to print the money. Since the FED is a privately owned corporation, the profit of the FED goes to the FED owners.
The U.S. Government now owes the FED owners the interest on those bonds. Remember that the FED owners do not earn the bonds, they simply arrange for printing 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 U.S. Government taxes the U.S. population." (2)
As Thomas Jefferson prophetically stated and warned:
“The Central Bank is an institution of the most deadly hostility existing against
the principles and form of our Constitution. . . .I believe that banking institutions are more dangerous to our liberties than standing armies. The modern theory of the perpetuation of debt has drenched the earth with blood, and crushed its inhabitants under burdens ever accumulating. Already they have raised up a monied aristocracy that has set the Government at defiance.
The issuing power should be taken from the banks and restored to the people to whom it properly belongs. If the American people ever allow the banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children will wake up homeless on the continent their fathers occupied.” Thomas Jefferson
Tragically, this prophecy has already materialized...
Article 1 - The Legislative Branch
Section 8 - Powers of Congress
To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures
To provide for the Punishment of counterfeiting the Securities and current Coin of the United States;
The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;
Section 9 - Limits on Congress
No capitation, or other direct, Tax shall be laid, unless in Proportion to the Census or Enumeration herein before directed to be taken.
No States shall make anything but gold and silver coin a tender in payment of debts
Interestingly, however, Section 8 and 9 of the US Constitution pertaining to taxation was illegally amended in 1913 ( 16th Amendment) just a few months before the Federal Reserve Act was fraudulently adopted by Congress in December 1913, to allow Congress to collect INCOME TAX from US citizens - in direct violation of Section 8 and 9 of the US Constitution which only allows direct apportioned taxation amongst the States - to pay off the interest and the principal on the money Congress would illegally have to borrow from the FED under the Federal Reserve Act. However, many constitutional scholars and lawyers claim that the 16th Amendment was never legally ratified by the States, making income tax unconstitutional and thus illegal. ( See: The law the never was, by Bill Benson and Red Beckman)
16th AMENDMENT of the US Constitution
Status of Income Tax Clarified.
"The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration."
The obvious question that any sane & thinking person would naturally ask, is why the US government has to BORROW COUNTERFEITED FIAT MONEY AT INTEREST from a CARTEL OF PRIVATE BANKS (FED) that US citizens are illegally coerced to repay through direct income taxation – both contrary to and in direct violation of the US Constitution - when the US Constitution strictly gives Congress the exclusive Constitutional right and the power " to coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures"?
I suggest that you urgently put forth this question to the US President - Barack Obama – and ask him what he intends to do to put an end to this anti-Constitutional, fraudulent and massive counterfeiting monetary system that has been plundering both the US citizens' and the worlds' real wealth since 1913, and which is at the root cause of all wars and economic depressions over the last 100 years, as well as being directly responsible for the current global financial/economic collapse with billions of victims worldwide.
As Abraham Lincoln rightly and clearly stated and warned:
“Money is the creature of law and the creation of the original issue of money
should be maintained as an exclusive monopoly of National Government.
Government possessing the power to create and issue currency . . . need not and
should not borrow capital at interest as the means of financing governmental work
and public enterprise.
The Government should create, issue, and circulate all the
currency and credit needed to satisfy the spending power of the Government and
the buying power of consumers. The privilege of creating and issuing money is not
only the supreme prerogative of Government, but it is the Government’s greatest
creative opportunity. The taxpayers will be saved immense sums in interest. . . . Money will cease to be master and become the servant of humanity. Democracy will rise superior to the money power.
The money power preys upon the nation in times of peace and conspires
against it in times of adversity. It is more despotic than monarchy, more insolent
than autocracy, more selfish than bureaucracy. I see in the near future a crisis
approaching that unnerves me and causes me to tremble for the safety of my country.
Corporations have been enthroned, an era of corruption in high places will follow,
and the money-power of the country will endeavor to prolong its reign by
working upon the prejudices of the people until the wealth is aggregated in a few
hands and the Republic is destroyed. -Abraham Lincoln
“And the control of the system of banking and of issue which our new laws are to
set up must be public, not private, must be vested in the Government itself, so that the banks may be the instruments, not the masters, of business and of individual enterprise and initiative.” Woodrow Wilson, 1913
Despite these warnings, Woodrow Wilson signed the 1913 Federal Reserve Act. A few years later he wrote:
“I am a most unhappy man. I have unwittingly ruined my country. A great
industrial nation is controlled by its system of credit. Our system of credit is con-centrated. The growth of the nation, therefore, 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 civilized world — no longer a government by free opinion, no longer a government by conviction and the vote of the
majority, but a government by the opinion and duress of a small group of dominant
men.” Woodrow Wilson, 1916
I encourage all those who wish to live as free men/women to urgently and actively carry out their own research on the fraudulent workings of the both Federal Reserve Bank (FED) and of the global financial architecture (i.e. Central Banking & Fractional Reserve Banking).
It (the banking system) is the most important subject intelligent persons
can investigate and reflect upon. It is so important that our present civilization
may collapse unless is widely understood and the defects remedied very soon.”
— Robert Hemphill, former credit manager of the Federal Reserve Bank of
As Goethe said:
“None are more enslaved than those who falsely believe to be free.”
As Tolstoy rightly stated:
“ Money is a new form of slavery, distinguishable from the old simply due to the fact that there is no personal and visible human relationship between master and slave.”
“While boasting of our noble deeds, we are careful to conceal the ugly fact that
by our iniquitous money system we have nationalized a system of oppression,
which, though more refined, is not less cruel than the old system of chattel slavery.” — Horace Greeley
History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and its issuance. -James Madison
And As Nathan Mayer Rothschild - the principal architect of the FED - stated:
“The few who can understand the system [Central Banking & Fractional Reserve Banking) will either be so interested in its profits, or so dependent on its favors, that there will be no opposition from that class, while on the other hand, the great body of the people mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests.” Rothschild Bros. of London, 1863
As Salmon P. Chase - Secretary of State
and Chief Justice of the Supreme Court - regretfully admitted:
“My agency in promoting the passage of the National Bank Act was the greatest
financial mistake of my life. It has built up a monopoly which affects every interest in the country. It should be repealed, but before that can be accomplished, the people will be arrayed on one side and the banks on the other, in a contest such as we have never seen before in this country.” — Salmon P. Chase, Secretary of State
and Chief Justice of the Supreme Court
“That is the one thing in my public career that I regret — my work to secure
the enactment of the Federal Reserve Law.” — William Jennings Bryan
And as Henry Ford said:
“It is well that the people of the Nation do not understand our banking and monetary
system, for if they did, I believe there would be a revolution before tomorrow
morning.” Henry Ford
That day is not far. The world is now too small for anything but Truth and Justice.
Reflections from some of the private BANKSTERS behind the creation of the FED.
“I care not what puppet is placed upon the throne of England. . . . The man that
controls Britain’s money supply controls the British Empire, and I control the
British money supply.” Nathan Mayer Rothschild
“The few who can understand the system [Central Banking & Fractional Reserve Banking) will either be so interested in its profits, or so dependent on its favors, that there will be no opposition from that class, while on the other hand, the great body of the people mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests.” Nathan Mayer Rothschild, 1863
“Banking was conceived in iniquity and born in sin. . . . Bankers own the
world. Take it away from them, but leave them the power to create money . . . and
with the flick of the pen, they will create enough money to buy it back again . . .
Take this power away from bankers, and all great fortunes like mine will disappear,
and they ought to disappear, because this would then be a better and a happier world
to live in . . . But if you want to continue to be the slaves of bankers, and pay the
cost of your slavery, let them continue to create money.” Josiah Stamp, former
President of the Bank of England
“The Bank hath benefit of interest on money which it hath created out of nothing.”
— William Patterson, Governor 1st Bank of England
“If that mischievous financial policy, which had its origin in the North
American Republic (the public issue of usury-free currency) should become
indurated down to a fixture, then that Government will furnish its own money
without cost. It will pay off debts and without a debt. It will have all the money
necessary to carry on its commerce. It will become prosperous beyond precedent in
history of the civilized governments of the world. The brains and wealth of all coun-tries will go to North America. That government must be destroyed or it will
destroy every monarchy on the globe.”
— Otto von Bismark
Reflections from US Congressmen, Senators and other political figures on the FED
“I wrote into the bill which was introduced by me in the Senate on June 26,
1913, a provision that the powers of the System should be employed to promote a
stable price level, which meant a dollar of stable purchasing, debt-paying power. It
was stricken out. The powerful money interests got control of the Federal
Reserve Board through Mr. Paul Warburg, Mr. Albert Strauss and Mr. Adolph C.
Miller, and they were able to have that secret meeting of May 18, 1920, and bring
about a contraction of credit so violent it threw five million people out of employment.
In 1920 that Reserve Board deliberately caused the Panic of 1921. The same
people, unrestrained in the stock market, expanding credit to a great excess
between 1926 and 1929, raised the price of stocks to a fantastic point where they
could not possibly earn dividends, and when people realized this, they tried to get
out, resulting in the Crash of October 24, 1929.”
“I had never thought the Federal Reserve Bank System would prove such a
failure. The country is in a state of irretrievable bankruptcy.”
— Carter Glass, 1938
“Whoever controls the volume of money in any country is absolute master
of all industry and commerce. . . . And when you realize that the entire system is
very easily controlled, one way or another, by a few powerful men at the top, you
will not have to be told how periods of inflation and depression originate.”
— James A. Garfield
“The gold standard has slain its tens of thousands. If they ask us why we do not
embody in our platforms all the things that we believe in, we reply that when we
have restored the money of the Constitution, all other necessary reforms
will be possible; but that until this is done there is no other reform that can be
— William Jennings Bryan
Click on the following link for a detailed chart on the ownership of the FED.