Having Reservenations

Intro

Often you will hear people use the phrase, "End The Fed". I know I've said it enough times and moments later I will often receive an email or a text message asking me what "the Fed" is or what is wrong with it. As a result, I decided perhaps it was time to sit down and take a few minutes to write a short note to try and hopefully answer more thoroughly, a few of the most common questions people have about the Federal Reserve (a.k.a. “the Fed”).

I like to think that this information will raise even more questions and inspire those reading to learn more about the Federal Reserve and what we can do, if anything, to rid ourselves of it. Please note that I'm not claiming to be an expert or any type of authority on this particular matter. What I'd like to do, however, is write down a few facts regarding the Federal Reserve - facts which are easily and readily available given even the smallest amount of research.

For now, I'm going to place enough faith in my own intelligence to believe I can paint a somewhat accurate picture of the Federal Reserve and I hope you find it worthwhile reading. I will try to keep it short and concise and touch on only the most critical aspects of the Federal Reserve and try to answer only the most common questions. I will also try to leave a few links and hopefully, those links and the links they contain will be enough to help anyone wishing to learn more about the Federal Reserve to find that information.

The Federal Reserve does what it does openly so all the information here, with the exception of predicting the future events, is factual and easily obtainable at any bookstore or even a web search. The nature of the Federal Reserve is not a secret nor is it a conspiracy theory at all but rather more akin to conspiratorial fact both in what it does and where it came from. And it is here that I'll begin.

Where did the Federal Reserve come from?

There is an island just off the coast of the state of Georgia named Jekyll Island. Today, Jekyll Island is a public vacation spot and home to such places as the Jekyll Island Golf Club and even a state park. The island is different today than it was in the early years of the 20th century. During those earlier years, the island served as a winter vacation spot for a few affluent families, mostly from New York City. These families would come to Jekyll island to enjoy the mild weather during the long and harsh New York winters. 

During that time, the island was home to several luxurious mansions that the individual owners referred to, modestly, as "cottages" (one particular cottage had 14 bathrooms). This is where the Federal Reserve was born. In 1910, the island was chosen as the location for a secret meeting of a select few of the world's wealthiest and most powerful individuals - people such as J.P. Morgan (who, at the time, owned the island), Nelson Aldrich (a senator), and Paul Warburg (a wealthy New York banker), just to name a few.

One of the reasons they had this secret meeting was to discuss some corporate agreements to enhance their profits (as some of them were competitors) but also to create a central bank. Some planning would be required if they were to create a central bank and sell the idea to congress. It would be difficult since many organizations and individuals, including congress, had a general distrust for banks, particularly central banks.

Since banks were poorly regulated, dishonest banking practices and bank runs often resulted in people losing their money. Congress would never have voted in favor of a central government bank at that time. So what they came up with, was this idea of a “reserve” which would be decentralized just enough through member banks that it wouldn't appear to be a central bank and disguised enough, even by name, to get congressional approval. This was all carried out in secrecy by private business owners who traveled under aliases, incognito to the island.

The details of the central bank and its member banks were written down and presented to congress by Senator Aldrich but not surprisingly, it was voted down. Far from finished, the bill was continually altered in whatever way necessary so that by 1913, the United States Federal Reserve Act was signed into law by President Woodrow Wilson.

This original bill which gained congressional approval was a bit different then The Federal Reserve Act is today and carried with it enough public protections to put any objections to rest. Unfortunately, it's often well enough to get a bill signed into law and amend it later. The Federal Reserve Act has been amended over two hundred times since it was signed into law. This leads us to our second question about the Federal Reserve.

What is The Federal Reserve?

The Federal Reserve is neither federal, nor a reserve. If one were to ask exactly what it is, it would have to be viewed as a unique hybrid of a private corporation and a government agency. There is indeed some question as to the legality of the Federal Reserve as per The Constitution, Article I, section 8, it is the responsibility of congress alone to regulate and value money, not a privately-owned bank or any group of banks.

I believe most anyone would seriously question the legality of the Federal Reserve after reading Article I, section 8 and I've provided a link below to that article and section of The US Constitution. Legal or not, the Federal Reserve's daily transactions directly affect the government and the taxpayers of the United States in some very serious ways. Since the activities of The Federal reserve have a direct affect on the taxpayers, it would seem very important to be able to closely monitor the actions of the Federal Reserve.

But however ridiculous it may seem, the Federal Reserve is shielded from even being audited by the government. In this particular regard, the Federal Reserve has more power than our own elected representatives. Our own government simply does not currently possess the power to audit the Federal Reserve.

No other United States bank, no business, and certainly no individual, shares this protection. The Federal Reserve system as a whole is a money trust benefiting the members of the public and privately-organized money trust cartel. This cartel consists of the US Government, the Federal Reserve, and the twelve Federal Reserve Member Banks.

As to who owns the Federal Reserve, we'd have to go back to the individuals in 1913 that would have had the means to create such a reserve. We know it's not the government and we know it's not the Member Banks. Although the Member Banks are given Federal Reserve stock certificates to appear as if they own the Federal Reserve, these certificates are simply fancy pieces of paper. The stock certificates are non-transferable and are not able to be sold or traded in any market in the world. So does it makes sense to say that the Member Banks don't really own the Federal Reserve? You can not claim ownership of something without possessing the ability to freely dispose of it. Starting with the government, we'll take a look at the members of this cartel and see how each is rewarded and at what expense it comes to the taxpayers.

How does the government benefit?

The government benefits from the money trust cartel (Federal Reserve) by having access to unlimited amounts of money without ever having to confront a single taxpayer. Let me say that again. Without ever having to confront a single taxpayer!

When the government has spent all the tax revenues it has received and still needs more money, the US government’s Treasury Department will go to the Federal Reserve and borrow from the Reserve whatever amount of money it needs from a few thousand dollars to several trillions of dollars. So where does the Federal Reserve get the money it loans to the government? It creates the money out of nothing. Just so we’re clear, let me repeat that again. It creates the money out of nothing.

At this point, a person may think, “Nobody can create money out of nothing because that would be illegal!” And they’d be right! It is illegal for anyone else in the world, other than the Federal Reserve, to create United States money. But that is precisely what the Federal Reserve does and exactly what it is designed to do. Today, US Dollars (which are really Federal Reserve Notes) are not backed by gold as they once were. In fact, they are not backed by anything.

Modern US Dollars (Federal Reserve Notes) are what is referred to as a “fiat” currency. A fiat currency is a currency that only has value because a governing body claims it does. A fiat currency, like a US Dollar, can only be as valuable as the value of the word of the governing body that created it. The same also holds true for government bonds and treasury bills. Another nice benefit is that no representative or person in government ever has to be the unfortunate person to confront the taxpayers and inform the people that their taxes will have to be raised to make up for the trillions of dollars the government spent over and above the US Treasury’s tax revenue.

That would end very badly for that particular representative. And because congress is not allowed to audit the Federal Reserve (and why would they want to?), Americans will never know or have a say in the billions and trillions of dollars the government borrows from the Reserve that will need to be repaid by the taxpayers.

For the most part, all of these enormous monetary transactions, some of which are made to foreign governments, take place far below the radar of the public eye and since the government has never been allowed to audit the nature of these transactions, no oversight whatsoever, the picture starts to become rather unnerving. Can you see how twisted it is that the very institute charged with creating our money has zero oversight? 

With unlimited money available to spend without any repercussions, we can easily see how government benefits so let's move on to the Federal Reserve and it's twelve Member Banks. How to they benefit?

How do the Federal Reserve and Member Banks benefit?

To see how the Federal Reserve and Member Banks benefit, we have to take a look at a dollar as it moves through the financial system. To do this, we’ll create a simple hypothetical scenario.

Let’s say Jack gets a check from the government for 10 dollars (woohoo!). Jack decides he’s going to deposit the 10 dollars into his bank account. The bank then takes Jack’s 10 dollars and deposits it into Jack’s bank account. Now the bank has Jack’s money (technically a loan to the bank) and since the bank now has Jack's 10 dollars, the bank can now do the other principle thing that banks do: lend money! This normally would never be a problem if the bank never loaned out more than that which was deposited or backed by some other asset in the bank's possession (reserve).

So where does this become a problem? The Member Banks are allowed to practice something called “fractional reserve banking” (see link below). It's a fancy term but simply means that a bank only needs to keep in its reserve, a small fraction of the amount deposited compared to that which it loans out. Using this system of fractional reserve banking, the Member Banks are allowed to lend more money than it has in it's possession - money that doesn’t even exist.

How much more money can it lend out? A lot more! Sometimes the bank may lend 10 times more than it keeps in reserve. All the while, the Member Bank is paid back the money it loaned out (created out of thin air), plus interest! What? Yes, it’s true. Let’s go back to that bank that has Jack’s 10 dollars. Let’s say the bank is required to keep 10% in reserve compared to the amount it loans out (for withdrawals, etc.). That means that the bank can use Jack’s deposit of 10 dollars to loan out 90 dollars (Jack's 10 dollars being the 10% kept in reserve).

The bank can get away with this since rarely does everyone withdraw their money at the same time. Then the bank is later paid back the 90 dollars plus interest on the money it created out of thin air. So the member banks are creating and earning interest on money that, like the Federal Reserve, was created out of nothing.

It sounds unbelievable because if Jack tried to write out 90 dollars worth of checks for every 10 dollars he actually had, he’d be in serious trouble. But banks are allowed to do this over and over again. This perpetual cycle of depositing, lending, borrowing, and paying back with interest, continually creates more dollars in the system. So what happens to all this money that is created in the process? Usually it gets paid back by the borrower and goes back into the system to repeat the cycle over and over again. This process continues producing even more money, some of which goes to the Federal Reserve and some of which is allowed to be kept by the Member Bank. Since almost everything today is bought with borrowed money (industrial parks, factories, farms, high rises, roads, cars, homes, desks, chairs, coffee cups),

It's almost hard to imagine the staggering amount of money which has been loaned out to be returned with interest. This river of cash and interest flowing back into the banking system is a perpetual cycle and at the Federal Reserve level, happens with little or no oversight from any government agency whatsoever. None.

The Federal Reserve, as the central bank to all the Member Banks, benefits in several ways but the chief way I want to talk about is that the Federal Reserve is collecting interest on all the money it has created out of thin air without having anything at all in reserve!

Any interest collected on nothing is an extremely good proposition but the sheer amount of interest that comes back into the Federal Reserve is immense. This is the money that is seen going to third world countries in the hundreds of millions or billions of dollars as any kind of aid or subsidy, be it wars, people, places, or any of the myriad of people, places, or things around the world that are simply not sustainable on their own.

Through the International Monetary Fund (IMF) and the World Bank, what has been created are second, third, and even fourth-generation welfare nations that are completely dependent on the Federal Reserve money to sustain their economies and provide food, shelter, and health care for their people.

Realistically, little of the money ever reaches the people and the leaders often keep much of the money to strengthen their military forces and live extravagant lifestyles. To make matters worse, two-thirds of the world’s currencies are now backed by US dollars. Just as the US Dollar was once backed by gold, these foreign currencies are backed by US Dollars; US Dollars created out of nothing! I shudder to think what will become of these nations if the dollar should become altogether worthless.

What’s wrong with this reserve system?

The damage this cartel creates is severe. While the government doesn’t have to go directly to the taxpayer and raise taxes to increase revenues, the taxpayers are still paying a hefty and ever-growing tax that most people never even notice.

That tax is the dollar depreciation tax. When you see prices going up year after year, one usually assumes that the value of the item has gone up and it is appreciating in value. People generally are led to believe that the intrinsic value of an item (e.g. a home, or a loaf of bread) will somehow be worth more tomorrow than it is today. The reality is that the item’s value doesn't increase, but rather the purchasing power of your dollar is decreasing. 

That’s right. It costs more dollars every year to buy the same item. Every American taxpayer is incurring a tax increase due to dollar depreciation (loss of purchasing power) caused directly by the infusion of vast amounts of fake money into the financial system. The more new dollars that flow into the system, the less the dollar is worth.

So how much depreciation has the dollar faced? Is it really that high? Since the inception of the Federal Reserve system in 1913, the dollar’s buying power has decreased by almost 96% of its original value. Only about four pennies of purchasing power remain from the original 1913 dollar. I’d say that’s a pretty high tax!

There’s also the issue of selective lending. Have you ever wondered why the Federal Reserve lends billions to foreign nations while there are states right here in the USA which are in massive debt and in need of help? It's also very important which particular countries the Federal Reserve is loaning money to. Are these loans serving our national interests? Since we have no way of auditing the Federal Reserve and there is no transparency there, how do we know that they are loaning money to the countries we would like? We live in a representative republic. How can our elected representatives serve our interests when they don’t even know where or to what countries our money is going?

The national debt is currently over $14.7 trillion dollars. A little less than half is owed to the Federal Reserve – around $7 trillion dollars. Why should the taxpayers owe the Federal Reserve money? If this is a government agency as it claims claims to be, then how can the government owe itself money?

As you can see, there are many ways (too many to list) that the Federal Reserve is corrupting and infecting our entire financial system. What appear as benefits to our government, it's representatives (appointed or elected), and it's financial system have massive costs over time to the taxpayers. And time is catching up with us.

In the last 100 years, the Federal Reserve has taken almost 96 cents out of every dollar in your pocket. The Federal Reserve clearly needs abolished. It is easily argued that it is unconstitutional and no longer serving our nation's interests. Our currency needs backing if it is to retain its value. There is no parlor trick that can circumvent that fact. The dollar needs a value standard as per The Constitution and this power should remain in congress and not the executive branch.

Where is all this headed?

Since all of this is stamped, sealed, and approved by the US Government, this is all taking place out in the open. You don’t have to think it a secret conspiracy because the conspiracy is being played out in broad daylight. The individuals that conceived this scam back on Jekyll Island owned or had control over a large portion of the world’s wealth and business and were the only people with enough wealth to create a central bank.

Those same individuals and their partners and descendants are the same people today that own and still control a large portion of the world’s wealth. I cannot predict the future but what I can do is take an educated guess where all of this is headed. What do we see happening here in the USA? 

Instead of reducing the spending of these fake dollars, the United States is borrowing and giving away more money than ever! They are not cutting back spending! They are creating and spending more money than ever and the United States is falling deeper and deeper into debt while the dollar is continually worth less and less.

Why would these experts, true financial geniuses in the most literal sense, continue creating and diluting the money supply at such a rapid rate? Obviously, if we can see the end result (a worthless dollar) than most certainly they can!

There is only one logical conclusion which would be the intent to crash the US Dollar. No financial expert would approve of trillion-dollar corporate bailouts, TARP funds, and war financing, all amidst a national and worldwide financial crisis!

When the dollar is finally worthless, what will happen to world markets? They will all crash. And if a new currency were to appear, an elite few will then be able to buy up and monopolize the world markets for next to nothing. The wealth poured into all those markets will be looked at as a blessing by all the world’s citizens when in reality it is simply the elite seizing control over the entire world which was the end game from the very beginning.

It has happened before although not on a global scale. In the meantime, the very same group of financiers is buying and investing in anything and everything that has influence over people – television networks, radio stations, newspapers, magazines, everything - slowly gaining control over everything you see, hear, or read. These outlets are dividing the people of the United States. They are polarizing every single group - blacks and whites, Democrats and Republicans, Christians and Muslims.

Our children are going to have front row seats to the greatest turmoil this planet has ever seen. It's not a possibility but rather an inevitability.

Wrap-up

I challenge each of you to dispute any of this. Prove me wrong. I want you to look into these things because I know that if you do, you will see for yourself all the problems this central banking cartel causes and you will find even more ways in which this fiat currency/reserve system is endangering our sovereignty. It's a scam of epic proportions on multiple levels.

Like I said, I cannot predict the future so I can only offer you my own logical conclusions. You will need to draw your own conclusions. I know that if anyone researches this money trust/government scam called the Federal Reserve and how it started and why, they will have no other feeling than that it needs to be destroyed immediately and utterly and control of our money supply be returned to congress.

At one point, an audit or the right to audit may have sufficed. But today, an audit will just take years and eventually conclude that everything is fine because everything this cartel is doing will look fine on paper. The government benefits greatly from this system and the Federal Reserve is doing exactly what it was designed to do. Which is to place the world in the control of a centralized world bank and centralized world government with all power and authority resting in the hands of a very elite few. It is accomplishing these objectives very effectively and openly.

"Give me control of a nation's money [supply] and I care not who makes the laws." - Mayer Amschel Rothschild

Additional Information:
Follow the external links below to more info:

Information on fractional reserve banking.

Article I, Section 8 of the US Constitution.

Information on how banks create money.

A long but very informative speech on the Federal Reserve.

The Case Against the Fed by Murray N. Rothbard.

CEOjr