few questions about the Federal Reserve

[nivosh]

Hi.

In the movies I saw (money masters, money as debt and so on)
they state that the federal reserve is a private bank and that it LOANS the money the the US government for interest.

But When i poke around the net (wikipedia and so on)
I see a different picture as in this link: http://answers.yahoo.com/question/in...1142045AAjANMu
and here: http://answers.yahoo.com/question/in...0184739AAM5DCc

So, Whats the truth?
Can someone with real economic background can answer about the claims in the movies? and give links to support it?

thanks

[Stargazer1965]

Originally Posted by nivosh

Hi.

In the movies I saw (money masters, money as debt and so on)
they state that the federal reserve is a private bank and that it LOANS the money the the US government for interest.

But When i poke around the net (wikipedia and so on)
I see a different picture as in this link: http://answers.yahoo.com/question/in...1142045AAjANMu
and here: http://answers.yahoo.com/question/in...0184739AAM5DCc

So, Whats the truth?
Can someone with real economic background can answer about the claims in the movies? and give links to support it?



thanks

Even the congress and senate talk of it being a "quasi" private bank. It enjoys the secrecy of a private corporation with no transparency....and all the benefits of a govt agency. There is a lot of heat on them from Congress and the senate for an audit....we the people of the US want to know where our money goes and Bernake (head fed) says it's really none of our business.....Wrong Answer ..... The best analogy I have ever heard is the the Federal Reserve is no more part of the government than Federal Express.

It's the biggest scam of the century......times up though.

I hope this helps.

[Unified Serenity]

The Federal Reserve is the biggest scam ever. The constitution gives the Federal Government the authority to mint and print our money, and yet we pay a private banking group to do it! The power to control the money supply is the power to control the country, and the elites knew this and that is why they wanted it.

The first thing the World Monetary Fund does in every new country is set up an income tax and Federal Reserve type system. They control the wars, the world economy and it is they who are at the bottom of the world's problems. The love of money is the root of all evil.

[nivosh]

All those things I know.

Where is the proof?

Can you provide links to congress man / journalists / economists who say the federal reserve is issuing your money and charges interest on it? or that it is a private bank?

[Unified Serenity]

I googled to find something quickly. Here is some info:

"the Ninth Circuit Court put that issue to rest in 1982 when they adjudicated:

"Examining the organization and function of the Federal Reserve Banks, and applying the relevant factors, we conclude that the Reserve Banks are not federal instrumentalities for purposes of the FTCA, but are independent, privately-owned and locally controlled corporations." [Lewis vs. U.S., 680 F. 2d 1239, 1241]

"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. Some people think the Federal Reserve Banks are U.S. government institutions. They are not government institutions. They are private credit monopolies; domestic swindlers, rich and predatory money lenders which prey upon the people of the united States for the benefit of themselves and their foreign customers. The Federal Reserve Banks are the agents of the foreign central banks. The truth is the Federal Reserve Board has usurped the Government of the United States by the arrogant credit monopoly which operates the Federal Reserve Board." [Congressman Louis T. McFadden, Chairman of the House Banking & Currency Committee, speech on the floor of the House of Representatives, June 10, 1932]

"In the united States we have, in effect, two governments....We have the duly constituted Government....Then we have an independent, uncontrolled and uncoordinated government in the Federal Reserve System, operating the money powers which are reserved to Congress by the Constitution." [Congressman Wright Patman, Chairman of the House Banking & Currency Committee, speech on the House floor, 1967]

HOW DID ALL OF THIS GET STARTED?

Briefly, the Federal Reserve system was created by international banking families such as the Rothschilds, Warburgs and Rockefellers. This international banking cartel creates "money" out of thin air. It only costs them a few cents to print each Federal Reserve Note "dollar bill", and then they "bill" the American people for the full face value of the note. Then to add insult to injury, they charge us interest to borrow their so-called "money". If you or I did this, we would be arrested for counterfeiting and fraud. This system was instituted gradually, starting with the Civil War and culminating with the fraudulent passage of the Federal Reserve Act in 1913."
Info from http://www.healthfreedom.info/Federal_Reserve_Fraud.htm

That page seems to say some great stuff. You seem to want the nuts n bolts info so I hope this helped. The Fed makes a ton of money in the banking system by creating money out of thin air, charing interest, then using the IRS to confiscate peoples money via taxes to pay down the "debt".

[Lorien]

Below is a link I cam across the other day. Not too sure how accurate he is on these statements, or more importantly how biased he is towards the Fed, but an interesting read non the less.

http://www.geocities.com/CapitolHill.../flaherty.html

[nivosh]

Here is an excerpt of the link you provided:

BY: Edward Flaherty, Ph.D. Department of Economics College of Charleston, S.C.

Facts: Yes, the Federal Reserve banks are privately owned, but they are controlled by the publically-appointed Board of Governors. The Federal Reserve banks merely execute the monetary policy choices made by the Board. In addition, nearly all the interest the Federal Reserve collects on government bonds is rebated to the Treasury each year, so the government does not pay any net interest to the Fed.

Facts: No foreigners own any part of the Fed. Each Federal Reserve bank is owned exclusively by the participating commercial banks and S&Ls operating within the Federal Reserve bank's district. Individuals and non-bank firms, be they foreign or domestic, are not permitted by law to own any shares of a Federal Reserve bank. Moreover, monetary policy is controlled by the publically-appointed Board of Governors, not by the Federal Reserve banks.

Fact: Independent accounting firms conduct full financial audits of the Federal Reserve banks and the Board of Governors every year. The Fed is also subject to certain types of audits from the Government Accounting Office.

Facts: The Federal Reserve rebates its net earnings to the Treasury every year. Consequently, the interest the Treasury pays to the Fed is returned, so the money borrowed from the Fed has no net interest obligation for the Treasury. The government could print its own currency independent of the Fed, but there would be no effective safeguards against abuse of this power for political gain.

Facts: The Federal Reserve banks have only a small share of the total national debt (about 7%). Therefore, only a small share of the interest on the debt goes to the Fed. Regardless, the Fed rebates that interest to the Treasury every year, so the debt held by the Fed carries no net interest obligation for the government. In addition, it is Congress, not the Federal Reserve, who is responsible for the federal budget and the national debt.

Facts: Kennedy wrote E.O. 11,110 to phase out silver certificate currency, not to issue more of it. Records show Kennedy and the Federal Reserve were almost always in agreement on policy matters. He even signed legislation to give the Fed more authority to issue currency.

Facts: McFadden was incorrect regarding the Fed costing the government money. However, later economic analysis agrees with him that Federal Reserve policy blunders had a substantial role in causing the Depression. However, his implication that this was done deliberately has no basis in fact. Moreover, for a dozen years prior to his rant, McFadden had been the chairman of the House subcommittee that oversaw the Federal Reserve. Why didn't he do anything to reform or abolish the Fed while he had the chance?

Facts: The banking system is indeed able to create money with a mere computer keystroke. However, a bank's ability to create money is tied directly to the amount of reserves customers have deposited there. A bank must pay a competitive interest rate on those deposits to keep them from leaving to other banks. This interest expense alone is a substantial portion of a bank's operating costs and is de facto proof a bank cannot costlessly create money.

Fact: The term 'lawful money' does not refer to gold or silver coin, but to types of money which the government would permit banks to use when tabulating their reserves. These types of money included, but were not limited to, gold and silver coin.

so, WHAT IS THE TRUTH?

[Stargazer1965]

Originally Posted by nivosh

All those things I know.

Where is the proof?

Can you provide links to congress man / journalists / economists who say the federal reserve is issuing your money and charges interest on it? or that it is a private bank?

Nivosh ...there is no smoking gun because of the web of shadow around the whole institution. A VERY established institution that has been in business since our grandparents. I always took it for granted that it was part of the government. Along with the IRS....Income Tax...alll these ILLEGAL practices made to drain away the hope of having time to actually think instead of clawing out a meager living.

[Unified Serenity]

1. Why did the Fed. Chairman threaten economic backlash regarding Ron Paul's demanding a FULL accounting of the Fed if they are audited every year?

2. Why is the Fed refusing to say where they gave over a trillion of tax payers money?

3. I cannot say how true the statement is that no foreign banks are involved seeing as so much money is transferred through purchasing loan packages such as happened in the housing industry and foreign banks are reported to have received much of the bail out money.

4. Why can't the government handle the creation of money since the Board of Governors over the Fed is supposed to be instituting government policy? Why have a private corporation in charge of this vital section of our lives? It's either an unnecessary expense or rats are running off with the money and it seems today that rats have run off with the money through lack of transparency.

I don't know what you are really seeking to find out or prove. The proof is in the outcome and the outcome has not been positive for the people of America.

[peaceandlove]

Originally Posted by nivosh

Hi.

So, Whats the truth?
Can someone with real economic background can answer about the claims in the movies? and give links to support it?

thanks

Here you go nivosh, how about a whole book:

Ron Paul's NEW Book 'END THE FED' available today 9/15/2009.

This powerful new work is an easy-to-understand guide to how the Fed operates and why it has destroyed our dollar and our economy.

Page #6, Post #133: http://projectavalon.net/forum/showt...244#post169244



Here is another great website to check for articles regarding the economy: http://mises.org/



See also Post #135 for review of "End The Fed" or go here direct: A Clear Conclusion: End the Fed http://mises.org/story/3718

[orthodoxymoron]

nivosh: here is the first part of an 11 part documentary which may connect some dots for you regarding the Federal Reserve. It is Aaron Russo's 'America: From Freedom to Fascism'. G. Edward Griffin and Ron Paul are two excellent sources for information regarding the Federal Reserve. The lack of audits and accountability regarding the Federal Reserve, Bankster Bailout, and Fort Knox Gold should be very telling. U.S. Dollars are printed out of thin-air...and based upon nothing. Not based upon gold. Not based upon silver. Not even based upon copper. Based upon nothing. So what goods and services has the private organization known as the Federal Reserve delivered to deserve our tax dollars? Look at the amount of money they actually spend(their total costs - including paying for traceable goods and services within the U.S.). Then look at the amount of money they actually collect. The profit seems to be obscenely staggering. Do they pay taxes on this profit? Who profits from this profit? Why don't they want to tell us? Isn't this telling? Does the money go into the Secret Space Program, Deep Underground Military Bases, and Other Secret Projects? Do Foreign Banks (in the City of London?) receive our tax money? Just a few questions about the Federal Reserve. I have more. A lot more. And so do a lot of other people. The secrecy surrounding a lot of things in our world needs to end. Not just the secrecy surrounding the Federal Reserve. I suspect that there are a lot of upsetting secret activities which are interconnected and international. Getting to the bottom of all of this will probably involve 'Disclosure'. When we finally get our financial house in order...there may be many people (and aliens?) who will be cut-off...worldwide. Will this provoke WWIII or Earth-Changes? Who knows? The Shadow Government? I'm not angry with anyone. Everyone's being squeezed. We're all in trouble. Sirius trouble? Freedom may be very, very expensive. For the whole world. We the People of Earth need to clean-up this international mess. If not us...who? If not now...when? What are our chances? 50/50? Get ready to rock and roll...around the clock...and around the world. I don't mean to sound shrill or inciteful. I much prefer evolutionary change...rather than revolutionary change. I am not vengeful or hateful. I simply want this world to operate in an above-board, ethical manner...with organized decentralism. I don't want to point fingers. I would even support an appropriate amount of immunity in exchange for full disclosure and cooperation. I don't know the full extent of what's going on. If I did...I'd probably quietly go completely nuts. The anonimity of the internet facilitates a bravery which does not exist in 'real' life.

[Northern Boy]

nivosh:Here is simple proof Join a Credit Union you make deposits into your account for a year with no withdrawals . say you have 6000..00 in an account now you want a new vehicle so you go for a loan . Depending on the strength of the economy and viability of the Credit Union you can borrow 9 to 10 dollars for every dollar you have in your account. how do I know this I have belonged to credit unions in the past

G. Edward Griffin wrote the book The Creature From Jekyll Island. It's how the fed was premeditated in secret at the resort home of John D. Rockefeller on Jekyll Island, Georgia (which happens to be just across the bridge from where I was born and raised in Brunswick, GA.) For the 45 years I lived there, I never heard one word about the fed being created there, but since I woke up a year ago, I've learned a great deal. Ron Paul's new book is also a great recommendation for you since you're seeking factual information. Hope this helps. Part 1 of 12