The government seems to be able to pull money out of thin air, and they pull out as much as they please, and the average American is stuck paying for their spending. The dollar bill is just a piece of linen with fancy printing-it really has no true backing.
One of the major investors in the Federal Reserve was…
it hasn’t gone downhill since the creation of the Federal Reserve — it’s been since the CORRUPTION of the Federal Reserve.
the Fed was created as a safeguard for the PUBLIC trust, but every time we have conservative governance, they turn it into a safety net for PRIVATE bankers.
conservatives want to privatize profits and socialize costs. Bear Stearns, anyone? a PRIVATE bank, bailed out with PUBLIC money.
Because the money of the US Banking system is created out of thin air due to fractional reserve banking.
Here is something for everyone to ponder… If all the debts were paid off, there would be NO money supply.
The Federal Reserve is a Private Corporation. The government is one of the “directors on the board”. Now if you and I were to open up a private bank and start this, we would be arrested for fraud.
Even Woodrow Wilson said that he destroyed the country unwittingly when he signed the Federal Reserve Act.
Exactly like you said, creation of money out of thin air devalues the dollar and instigates the inflation tax and that money also funds the MIC. No one benefits except people at the top.
Also it’s funny that we’ll always be in debt forever because the Federal Reserve charges interest on the money printed to the government, so the only way to pay off that interest is to print more money. In the mean our income tax goes to pay off the national debt.
It is difficult researching who the investors of the Fed are, because the Federal Reserve Bank is not a publicly traded corporation and is therefore not required by the Securities and Exchange Commission to publish a list of its major shareholders. Corporate Banks such as Chase Manhattan and Citigroup, both Rothschild interests, are considered major shareholders in the Fed, however, a direct correlation can not be made without a full audit of the Central Bank, which has never been done. Naysayers will claim that the GAO audits the Fed often, but these audits are normally of Banks CONNECTED to the Fed, not the Federal Reserve board itself.
The Government Accounting Office does not have complete access to all aspects of the Federal Reserve System. The Federal Banking Agency Audit Act stipulates the following areas are to be excluded from GAO inspections:
(1) transactions for or with a foreign central bank, government of a foreign country, or nonprivate international financing organization;
(2) deliberations, decisions, or actions on monetary policy matters, including discount window operations, reserves of member banks, securities credit, interest on deposits, open market operations;
(3) transactions made under the direction of the Federal Open Market Committee; or
(4) a part of a discussion or communication among or between members of the Board of Governors and officers and employees of the Federal Reserve System related to items.
So, basically everything that we NEED to know about the Fed is excluded from any Audit. Anyone who says otherwise is twisting the facts, or lying outright.
I have also heard claims that the Fed does not print money or oversee the printing of money. This is false.
“In 1990, at a cost of 2.6 cents each, over seven billion notes worth about $82 billion were ((produced for circulation by the Federal Reserve System.)) Ninety-five percent will replace unfit notes and five percent will support economic growth. At any one time, $200 million in notes may be in production. Notes produced in 2002 were the $1 note, 41% of production time; the $5 note, 19%; $10 notes, 16%; $20 note, 15%; and $100 note, 9%. No $2 or $50 notes were printed in 2002.”
This quote is from a Federal Reserve Website under (oddly enough) “PRINTING OF CURRENCY”:
To be fair though, most of the money the Federal Reserve “creates” is not paper but electronic.
Currently the Federal Government spends more than they can tax us each year, entirely because they’re paying all of this revenue towards interest on previous years’ loans. So, what they do is have the Treasury print U.S. Bonds to exchange for loans from the privately owned Federal Reserve System.
The private Federal Reserve owners don’t have a trillion dollars to lend the Government, nor do they need it. All they do is create it, via a bookkeeping entry, and write a check to the U.S. Government as the loan in exchange for the U.S. Bonds. The U.S. Government banks at the Federal Reserve Bank so cashing this check is very easy.
The Government now spends this newly created money into the economy by paying the Court, Postal and Military employees, etc. These consumers then deposit their paychecks in a commercial bank, Bank of America for example. The commercial banks deposit their customers’ check (newly deposited money) at their local Federal Reserve Bank and the Reserve Bank allows the commercial bank to issue up to 33 times more new electronic money, some of which is used to cover the customers’ initial deposit. This is called “Fractional Reserve Banking.”
The Fed basically loans money to the U.S. treasury with interest, which the Treasury could easily create for itself without interest. There is absolutely no need for the Fed. This is why both Lincoln and Kennedy tried to mint “US Treasury Notes” and shut down the central banks of their eras. Funny what happened to them immediately after they tried to do this……..
Even the Federal Reserve publication “How Banks Create Money” asserts: “Banks actually create money when they lend it. Here’s how it works: Most of a bank’s loans are made to its own customers and are deposited in their checking accounts. Because the loan becomes a new deposit, just like a paycheck does, the bank once again holds a small percentage of that new amount in reserve and again lends the remainder to someone else, repeating the money-creation process many times.”
Mayer Rothschild was hardly an investor in the Federal Reserve. He died in 1812, more than a century before the Federal Reserve act was passed. (Ref: http://en.wikipedia.org/wiki/Mayer_Amsch… )
Also, by law, the Federal Reserve has no foreign investors. Only domestic member banks can own shares in their Fed branch.
I could ad Rockefeller and Morgan and Warburg quotes…all day.
People can’t get their heads around the concept. It’s just to overwhelming… and undermining. To face the Fed means a complete restructure,,, and we are at a cross roads politically.
Very Strange Times.. But I couldn’t agree more,
we no longer have a Gold Standard.
for those of you that aren’t sure of what’s being said here..
follow this link
How has the USA “gone downhill” since the creation of the Federal Reserve? I assume that we are limiting this “going downhill” to economics since I can’t fathom any other possible association, so with that in mind…
In 1913, the US was the #2 Economy with a 19% share of the world GDP.
By 1998, the US was the #1 economy with a 21.9% share of the world GDP.
We only recently became the #2 economy again (#1 being the EU), but that has more to do with current Government policies and trends in industry and such.
The federal reserve has private investors ?
No of course not. Like bankers and people who stand to make huge profits off of war and other people’s suffering would EVER do that
they need a $20 minimum wage a bag of doritos nacho cheese flavor is $18