What is the Federal Reserve System

GOLDSILVER

Q: What is the Federal Reserve System?

A: The Federal Reserve System is not Federal; it has no reserves; and it is not a system, but rather, a criminal syndicate.

It is the product of criminal syndicalist activity of an international consortium of dynastic families comprising what the author terms "The World Order" (see "THE WORLD ORDER" and "THE CURSE OF CANAAN", both by Eustace Mullins).

The Federal Reserve system is a central bank operating in the United States. Although the student will find no such definition of a central bank in the textbooks of any university, the author has defined a central bank as follows: It is the dominant financial power of the country which harbors it.

It is entirely private-owned, although it seeks to give the appearance of a governmental institution.

It has the right to print and issue money, the traditional prerogative of monarchs. It is set up to provide financing for wars. It functions as a money monopoly having total power over all the money and credit of the people.

Q: When Congress passed the Federal Reserve Act on December 23, 1913, did the Congressmen know that they were creating a central bank?

A: The members of the 63rd Congress had no knowledge of a central bank or of its monopolistic operations. Many of those who voted for the bill were duped; others were bribed; others were intimidated.

The preface to the Federal Reserve Act reads "An Act to provide for the establishment of Federal reserve banks, to furnish an elastic currency, to afford means of rediscounting commercial papers, to establish a more effective supervision of banking in the United States, and for other purposes."

The unspecified "other purposes" were to give international conspirators a monopoly of all the money and credit of the people of the United States; to finance World War I through this new central bank, to place American workers at the mercy of the Federal Reserve system’s collection agency, the Internal Revenue Service, and to allow the monopolists to seize the assets of their competitors and put them out of business.

Q: Is the Federal Reserve system a government agency?

A: Even the present chairman of the House Banking Committee claims that the Federal Reserve is a government agency, and that it is not privately owned.

The fact is that the government has never owned a single share of Federal Reserve Bank stock. This charade stems from the fact that the President of the United States appoints the Governors of the Federal Reserve Board, who are then confirmed by the Senate.

The secret author of the Act, banker Paul Warburg, a representative of the Rothschild bank, coined the name "Federal" from thin air for the Act, which he wrote to achieve two of his pet aspirations, an "elastic currency", read (rubber check), and to facilitate trading in acceptances, international trade credits.

Warburg was founder and president of the International Acceptance Corporation, and made billions in profits by trading in this commercial paper. Sec. 7 of the Federal Reserve Act provides "Federal reserve banks, including the capital and surplus therein, and income derived therefrom, shall be exempt from Federal, state and local taxation, except taxes on real estate." Government buildings do not pay real estate tax.

Q: Are our dollar bills, which carry the label "Federal Reserve notes" government money?

A: Federal Reserve notes are actually promissory notes, promises to pay, rather than what we traditionally consider money.

They are interest bearing notes issued against interest bearing government bonds, paper issued with nothing but paper backing, which is known as fiat money, because it has only the fiat of the issuer to guarantee these notes.

The Federal Reserve Act authorizes the issuance of these notes "for the purposes of making advances to Federal reserve banks... The said notes shall be obligations of the United States.

They shall be redeemed in gold on demand at the Treasury Department of the United States in the District of Columbia."

Tourists visiting the Bureau of Printing and Engraving on the Mall in Washington, D.C. view the printing of Federal Reserve notes at this governmental agency on contract from the Federal Reserve System for the nominal sum of .00260 each in units of 1,000, at the same price regardless of the denomination.

These notes, printed for a private bank, then become liabilities and obligations of the United States government and are added to our present $4 trillion debt. The government had no debt when the Federal Reserve Act was passed in 1913.

 Q: Who owns the stock of the Federal Reserve Banks?

A: The dynastic families of the ruling World Order, internationalists who are loyal to no race, religion, or nation. They are families such as the Rothschilds, the Warburgs, the Schiffs, the Rockefellers, the Harrimans, the Morgans and others known as the elite, or "the big rich".

 Q: Can I buy this stock?

A: No. The Federal Reserve Act stipulates that the stock of the Federal Reserve Banks cannot be bought or sold on any stock exchange. It is passed on by inheritance as the fortune of the "big rich". Almost half of the owners of Federal Reserve Bank stock are not Americans.

 Q: Is the Internal Revenue Service a governmental agency?

A: Although listed as part of the Treasury Department, the IRS is actually a private collection agency for the Federal Reserve System.

It originated as the Black Hand in mediaeval Italy, collectors of debt by force and extortion for the ruling Italian mob families.

All personal income taxes collected by the IRS are required by law to be deposited in the nearest Federal Reserve Bank, under Sec. 15 of the Federal Reserve Act, "The moneys held in the general fund of the Treasury may be ....deposited in Federal reserve banks, which banks, when required by the Secretary of the Treasury, shall act as fiscal agents of the United States."

 Q: Does the Federal Reserve Board control the daily price and quantity of money?

A: The Federal Reserve Board of Governors, meeting in private as the Federal Open Market Committee with presidents of the Federal Reserve Banks, controls all economic activity throughout the United States by issuing orders to buy government bonds on the open market, creating money out of nothing and causing inflationary pressure, or, conversely, by selling government bonds on the open market and extinguishing debt, creating deflationary pressure and causing the stock market to drop.

 Q: Can Congress abolish the Federal Reserve System?

A: The last provision of the Federal Reserve Act of 1913, Sec. 30, states, "The right to amend, alter or repeal this Act is expressly reserved." This language means that Congress can at any time move to abolish the Federal Reserve System, or buy back the stock and make it part of the Treasury Department, or to altar the System as it sees fit. It has never done so.

 Congressman McFadden
on the Federal Reserve Corporation
Remarks in Congress, 1934
AN ASTOUNDING EXPOSURE
http://home.hiwaay.net/~becraft/mcfadden.html

GOLDSILVER

 A Phone Call To The Fed
http://www.apfn.org/apfn/money2.htm  

It's Time to Circle the Wagons
http://www.apfn.org/apfn/money.htm

FEDERAL RESERVE ~ THE ENEMY OF AMERICA
http://www.apfn.org/apfn/reserve2.htm

LIBERTY: YOUR RIGHT TO MAKE A LIVING
http://www.apfn.org/apfn/living.htm

The Federal Zone:
Cracking the Code of Internal Revenue
http://www.apfn.org/apfn/fedzone.htm

God, Gold, the Fed and Capitulation
http://www.apfn.org/apfn/gold.htm

The Bankruptcy of the United States
http://www.apfn.net/Doc-100_bankruptcy.htm

The Fed, The Fed, The Fed
http://www.gold-eagle.com/editorials_01/sennholz040301.html

The Declaration of Independence
http://www.apfn.org/apfn/declaration.htm

The Federal Reserve - What Is It? Who Is It?
http://www.the-oil-patch.com/archive/federal-reserve.html

The Coming Battle (The Book)
http://www.apfn.org/apfn/comingbattle.htm  

The United Nations plans to CONFISCATE your profit and ---.
http://www.apfn.org/apfn/united_nations.htm
The 545 People Responsible For All of America's Woes
http://www.apfn.org/apfn/woes.htm

What's Depression Insurance?

Depression Insurance

Gold is Depression Insurance, and as an asset class, is a place to store your wealth.  And, during times of uncertainty and inflationary periods it is one of the best places to protect your hard-earned money.  As with any asset class, you should never have all of your eggs in one basket - and this includes precious metals.  However, if you do not have an appropriate allocation of your assets in precious metals, you are most likely not maintaining a well-balanced portfolio. 

For decades many Americans depended upon the value in their home as their main investment - that sentiment is changing based on the new global reality of depressed values, increasing foreclosure rates, and no access to capital (used to unlock some, if any, of the value that you have in your home).

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 If you have not been paying attention, or just did not care, perhaps now would be a good time to take advantage of the current gold and silver prices and purchase today. Depression Insurance does not come any cheaper.  Click the link below and take that first step to solvency.

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Gold headed for $10,000 by 2012

Arnold Bock
June 15, 2010
www.resourceinvestor.com

No wishful thinking here! As I see it gold is going to a parabolic top of $10,000 by 2012 for very good reasons - sovereign debt defaults, bankruptcies of “too big to fail" banks and other financial entities, currency inflation and devaluations - which will all contribute to rampant price inflation.

Not surprisingly, I have company in that view:

Money manager, Peter Schiff, told Business Week recently that, "Gold could reach $5,000 to $10,000 per ounce in the next 5 to 10 years" and highly respected economist David Rosenberg is of the opinion that "There is no doubt that gold can easily double from here."

The causes:

1. History is No Guide
   Gold has only been trading freely since President Nixon's 1971 decision to deny gold to the French and others attempting to repatriate their paper dollars for the metal. As such, there has been a scant forty years of gold production and trading since it was detached from supporting paper money. This period has also been marked by substantially higher monetary and price inflation as well as currency devaluation.
2. Market Manipulation
   The Commodity Futures Trading Commission (CFTC) recently held a major hearing which blew the doors off bullion metals futures trading markets in terms of what was revealed publicly. I predict this public hearing will be viewed in the period ahead as the precious metals price liberation event of the decade. It is commonly known that JP Morgan Chase is the major player in commodities futures markets trading. Not only do they take massive naked short positions (betting that prices will fall), they do it with large substantial leverage. What isn't as well known though is that Chase acts as the agent for the Federal Reserve Board and other central banks in "managing" the markets on their behalf. Central banks want "orderly" precious metals markets and prices and currencies which don't gyrate wildly. Only then can they achieve stealth inflation in their monetary policy which is so beneficial in servicing debt. It also makes for good (meaning effective) politics.
3. Insufficient Physical Inventories
   While it is normal for traders to roll their expiring contracts over into new paper trades, some traders accept cash in settlement rather than the metal. To the amazement of everyone, the recent hearing of the CFTC -- specifically Jeffrey Christian’s comments -- inadvertently confirmed that there is little bullion in storage at the London Metal Exchange or New York's Comex to back the metals trading. He justified this fact by noting that only one ounce of one hundred traded is paid out in physical metal. This revelation confirmed a much worse reality than even critics, such as the Gold Anti-Trust Action Committee (GATA), had expected. It seems that the Asian and Mid East buyers and owners of bullion have been removing gold from their dealers’ vaults and are taking it "home" thus leaving much less than previously thought in the London, New York and Toronto vaults.In addition to what looks like a production peak in the gold mining industry (production has fallen in five of the last eight years), central banks have for the first time recently become net purchasers (having bought more gold last year -- 425 tons -- than at any time since 1964). The single largest purchasers of metal these days, other than central banks, are the bullion ETFs (exchange traded funds) which ostensibly have their metal inventories in vaults. These relatively new investment vehicles, unfortunately, are not transparent in their business practices. Regular audits by reputable accounting firms and allocated and segregated bullion inventories stored in reputable vaults are opaque at best. This begs the question: “Do the large ETF bullion funds actually have the metal they purport to own, or is their inventory more the 'paper gold' variety in which bullion trading exchanges seem to specialize?"

The effect:

1. The revelations, outlined above, that there is insufficient physical inventory to meet new investment demand for ownership and delivery of physical bullion, is about to blow the price lid skyward.
2. As public awareness of sovereign debt mounts, it will drive home the reality of mounting government insolvency.
3. Confidence in currencies will wilt commensurately.
4. Investment demand for real gold and real money as a safe haven investment will expand exponentially.
5. These events should take place from mid 2011 through 2012 and extend further out toward 2015 before demand is satiated.
6. The dramatic price increases in gold and silver will at that point also satisfy the unstated desire of central banks and politicians to devalue their currencies in order to assist them in meeting their debt and unfunded liabilities.

After the 2008/2009 crash, governments bailed out their failing financial institutions and investment banks through a variety of innovative measures. The next time round most governments will not be in a position to do so -- again. Even more troubling, the IMF (International Monetary Fund) will not be capable of rescuing the increasing number of insolvent governments and their financial institutions.

You may think my aforementioned views are crazy or perhaps just that my imagination is way out of hand or, at best, that I don’t have access to the appropriate reality checks. Be that as it may, I am increasingly confident that the consequences of fragile sovereign debt, precious metals market manipulation, insufficient physical supply, and the need for a safe haven investment refuge, will drive precious metals bullion and mining stock to unimagined heights.

The circumstances immediately ahead are largely unprecedented. History is therefore only marginally useful as our guide to the future price of precious metals. We are now in genuinely unchartered territory.

Get yourself positioned to take advantage of this event of a lifetime. Protect your assets from the next and more serious leg of the 'Greater Depression' directly ahead. Get a running start NOW on growing your future wealth.

That's The Madere Way

 Chuck Madere
650-366-5307

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Self Improvement from SelfGrowth.com- - SelfGrowth.com is the most complete guide to information about Self Improvement on the Internet. 

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End the Fed The Federal Reserve System, brought to you by Chuck Madere. The Fed, is the most important financial institution in the nation. Yet few Americans understand the Fed’s real purpose for existence and the dangers it presents to our nation’s financial well-being. However, Congressman Ron Paul’s book End the Fed, a New York Times bestseller, is changing that.

Simply, the Fed is a central bank, which has the legal authority to “create money out of thin air.” As Congressman Paul notes, as have other critics of the Fed have noted, it is an inflation machine. Rising prices across the board are not—and have never been—the fault of OPEC, unions or greedy corporations. Inflation is a monetary phenomenon that lies primarily at the door of the Fed. Fractional reserve banking deserves its share of the blame for inflation, but fractional reserve banking is exacerbated by the very existence of the Fed.

First elected to Congress in 1976, Ron Paul became a thorn in the side of the Fed, annually introducing a bill to dismantle the Fed. In no year could the Congressman find even one cosponsor to his bill. The Fed is held with such esteem by members of Congress that no one will stand alongside Dr. Paul on this issue. He was a voice crying in the wilderness, and I don’t doubt but that many members of Congress ridiculed him for his position on the Fed. Now, Ron Paul may be David, about to slay Goliath.

When the Fed created literally trillions of dollars to bailout large financial institutions and Ben Bernanke, Fed Head, had the audacity to tell Congress that he was not going to reveal who got the money much less how much they got, there was an uproar across the country. For perhaps the first time ever, the Fed was the focal point of public criticism, and Ron Paul called for a real audit of the Fed with HR 1207.

So intense have been the attacks on the Fed that for the first time it hired a lobbyist to defend its position on Capitol Hill. Paul’s Audit the Fed bill has 55 cosponsors and passed out of the House Financial Services Committee by a vote of 43 - 26. The Senate companion bill, S 604, has 31 cosponsors. Suddenly, Congressmen and Senators climbed on board the Ron Paul wagon. Undoubtedly, cosponsors climbed aboard not because they suddenly saw the evils of the Fed but because they saw the handwriting on the wall.

For nearly a hundred years, the Fed pretty much successfully concealed that it was the beast that its critics had said it was. To this day, most Americans do not know that the Fed, with its loose money policies of the 1920s, was the cause of the Great Depression of the 1930s.

In the 1970s, when prices rose at double digits rates, only Austrian economists correctly saw the Fed as responsible. The media, which by then had become fairly much the Fed’s lapdogs, blamed the “oil shock.”

Other times, rising price levels were attributed to “cost-push inflation,” a spurious theory that blamed businesses. When the CPI and GPI rose “only” 2%-3%, Americans were told “a little inflation is good.” Now, though, Ron Paul has told the truth.

The Fed is not a beneficent organization established for the good of mankind but exists solely for the benefit of big banking. End the Fed is Ron Paul’s assessment of an institution whose machinations he has sought to expose since before becoming a member of Congress. He relates how he came to realize the immorality of the Fed and the inflation it creates. And, he tells of his conversations with Fed Heads Greenspan and Bernanke when they appeared before House committees.

Paul pulls no punches. He lays the blame for the financial crisis of 2008 and the housing crisis squarely at the feet of Alan Greenspan. “History will show that Greenspan, during his years as Fed chairman (1987-2006), planted all the seeds of the financial calamity that erupted in 2007 and 2008.”

Further, Paul declares Obama’s “solution” to the problem not a solution at all. “. . . the inflation and debt accumulation of the Obama years will not inflate our way out of it. This depression will likely last and last. (Note that Paul calls our present economic woes a depression, not a recession.) If the depression lasts a decade or more, its length cannot be blamed solely on Greenspan. That blame will be placed on the current Federal Reserve Board, Congress, the President, the Treasury, but above all on Keynesian economic policy, the same philosophy that gave us the Great Depression of the 1930s.

” Many persons familiar with Ron Paul’s assessments of our problems are quick to point out that he is a doctor, “not an economist.” To that, I would remind them that Ron Paul has studied economics his entire adult life. Further, he has hobnobbed with some of the foremost economic thinkers of the Austrian economic school, such greats as Murray Rothbard, Hans Sennholz, F. A. Hayek and the master himself, Ludwig von Mises.

Additionally, Ron Paul has authored at least ten books on economics and political thinking. The Revolution, a Manifesto, like End the Fed, became a New York Times bestseller. With Lewis Lehrman, Paul coauthored The Case for Gold, which was a minority report to the 1981 U.S. Gold Commission, a Ronald Reagan initiative to study the role that gold should play in our monetary system. (The commission was stacked with anti-gold members and the minority report was one of only two benefits to come from the commission’s work. The American Eagle bullion coin program was the other.)

Ron Paul’s grasp of economics and understanding of the political process make him eminently qualified to write about economics and to make economic forecasts. Sadly, Paul is not optimistic about the immediate outlook for our economy.

End the Fed is only 210 pages, divided into fifteen chapters. Although Paul’s explanation why this depression likely will “last and last” is scary, his Chapter 4, Central Banks and War, is a shocker. Simply put, central banks facilitate war and give politicians fewer reasons to seek political solutions to differences with other nations. “It is no coincidence that the century of total war coincided with the century of central banking.” Before the days of central banks (European as well as our Fed), wars resulted in higher taxes and shortages as resources were diverted from the domestic economy to the war effort.

When politicians have to tell the people that the wars they are about to embark upon will raise taxes and create shortages, political solutions become viable alternatives. When the costs of the wars can be hidden through the creation of new money via central banks, political solutions are less likely. Sadly, many investment banking houses actually agitate for war as they stand to make billions of dollars issuing and trading in the bonds and securities that are sold as a nation gears for war.

Ron Paul’s End the Fed is must reading for anyone seeking to survive today’s financial turmoil. Understanding the problem is the first step toward solving it.

Thank You All For Reading

Chuck Madere

Self Improvement from SelfGrowth.com- - SelfGrowth.com is the most complete guide to information about Self Improvement on the Internet.