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« The Canadian Dollar versus The US Dollar | Main | Global Stock Markets Fall As Gold Prices Rise »
Monday
Aug132007

The Federal Reserve: The Greatest Scam In History?

The Federal Reserve was created in 1913-1914 in order to bring stability to the economy and yet almost every major crash, including the great depression, can be attributed to the Federal Reserve.

The Federal Reserve: The Greatest Scam In History?

We are going to take a look at the history of the Fed and what prominent historical figures have said about the organisation.

Firstly, from 1837-1862 there was a system of national banks in the USA but then in 1913-1914 a consortium of 12 privately held banks got together and formed the Federal Reserve Bank, an entity that is not part of the US government. These banks then purchased notes from the US Mint for printing costs and lent them out through member banks charging interest.

The Federal Reserve came into being after its supporters paid for the Presidential campaign of US President Woodrow Wilson. Wilson signed the bill that transferred the US currency to twelve regional private banks

Wilson regretted his decision later saying:

“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 concentrated. 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.”


In 1933 President Roosevelt confiscated citizens gold and handed it to the Federal Reserve. At the very moment when Americans have needed to protect their wealth the most, the best store of wealth ever created, gold, was confiscated from American citizens and given to a un-elected conglomerate of private banks.

When the bill for the Federal Reserve was being considered, some brave politicians spoke out against its creation calling it “the strangest, most dangerous advantage ever placed in the hands of a special privilege class by any Government that ever existed” and Congressman Victor Murdock said, “I do not blind myself to the fact that this measure will not be effectual as a remedy for a great national evil – the concentrated control of credit.”

It even appears that one of the most important and most respected figures in American history disagrees with the Federal Reserve saying, "If the American people ever allow private banks to control the issue 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 wake up homeless on the continent their fathers conquered."

Jefferson also said, "I sincerely believe the banking institutions having the issuing power of money are more dangerous to liberty than standing armies"

“Paper is poverty… it is only the ghost of money, and not money itself.”


The Federal Reserve make no secret about the scam they are running as the Boston section of the Federal Reserve Bank said:
"When you or I write a check there must be sufficient funds in our account to cover the cheque,
but when the Federal Reserve writes a check there is no bank deposit on which that cheque is drawn.
When the Federal Reserve writes a cheque, it is creating money."


Perhaps the Fed can create money, but we strongly believe that wealth cannot be created. Wealth is simply transferred, it is not created and we challenge anyone to prove otherwise. The only time wealth was created was when the world was created, with all its resources, true wealth.

So why hasn't the Federal Reserve been disbanded?

Well as the Rothschild Brothers of London said in 1863; “The few who understand the system, will either be so interested from it's profits or so dependant on it's favours, that there will be no opposition from that class."

The great Henry Ford once said "It is well enough that 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."

The problem is, very few people understand the system at all. It is not taught in schools and even some of the most prominent financial analysts and fund managers really have no idea how the system works. They tend to define inflation as rising prices when in fact inflation occurs because of the expansion of the money supply. Or even link inflation with the economy doing well, saying “we should raise interest rates as the economy did extremely well this month and we don't want inflation getting out of hand”, or words to that effect.

What all people, not just investors, need to understand is that paper money is worthless. Gold and precious metals are the real money, the real wealth, that cannot be created like its paper ghost.

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Reader Comments (7)

Until our god given right to vote directly on the issues is established and protected, there will always be a representative available to divert the will of the people and skim off the top at the direction of rich people.

Jim Blevins

December 30, 2007 | Unregistered CommenterJim

In the public eye, very little is understood about Money and the nature of money, yet it is something that expands into every facet of our life.

There is a serious lack of exposure to the nature of money, and basic education on the topic. This results in a "mental block" whenever it is brought up. ...because it seems like a foreign language.

In school we learn about what happens when a consumer needs to borrow money, what happens when a company needs to borrow money...but what happens when a country needs to borrow money?

So what can be done to increase awareness... en masse?

January 28, 2008 | Unregistered CommenterNimal

I am very concerned that the general public has absolutely no understanding of the Federal Reserve system. As I see it, there is no hope for this to change in the near future. I took two semesters of economics in college and the truth about the Federal Reserve was never discussed. I learned the truth by accident much later in life and I felt so ignorant.

April 2, 2008 | Unregistered CommenterRon Foster

Timothy Geithner - Chair of the NY Federal Reserve Bank to be treasury secretary January 20th 2009. God speed to you my friends to the south.

November 26, 2008 | Unregistered CommenterUnillenium

Well said!

November 5, 2009 | Unregistered CommenterJake

Thank you.

November 6, 2009 | Unregistered CommenterGold Prices

Hi,

Hope this email finds you in good spirits.
The email below is pretty explanatory. If not, understand NY FED Reserve admitted electronic negotiable instruments are worthless.
Know what that means?

Alvie

Federal Reserve Bank
New York
“From: ucclaw-l-bounces@lists.washlaw.edu
On Behalf Of Joseph.Sommer@ny.frb.org
Sent: Friday, March 26, 2010 11:15 AM
To:xxx-xxx-xxx
Subject: Re: [Ucclaw-l] Electronic PromissoryNotes

If I were confronted with an "electronic promissory note", I would walk very slowly
away and break into a run as soon as I can.
They are a logical impossibility, along with electronic chattel paper and UCC 7 electronic
warehouse receipts.
The word "electronic" is miserably defined in all the statutes. But we all kinda sorta know
what it means: something in a computer, rather than in some more fixed medium. Of course, a
computer is made of matter and energy, just like a slip of paper or the side of a cow. So it
must mean something special to be "in a computer."
And it does! Most records are stably associated with a particular agglomeration of matter which--if it is not realty--can be
physically transferred from one person to another. This includes paper, cows, and DVDs. If the piece of paper or Old Bossy or
the DVD is uniquely distinguishable from any other piece of paper or cow or DVD that bears the same data structure, we have the basis for a system of negotiability.
However, computer records are not stably associated with any particular piece of matter.
Instead, they are stably associated with a system, which contains many pieces of matter amongst which the record may be sitting, at any
given moment. Or the record could be sitting in 12 places in the system; it makes no difference. You don't need a unique piece of
matter to uniquely identify an obligation—there is no unique matter (or energy) associated with the record. You just need an authoritative registry.
Hence the logical impossibility of an electronic promissory note. "Promissory note" means unique piece of matter. "Electronic" means
that there is no unique piece of matter, and we're dealing with authoritative registries.
UCC 8 gets this right. It has two property systems that rely on unique pieces of matter (registered and unregistered certificates), and
two systems that rely on authoritative registries (transfer agents and securities intermediaries.)
The cotton warehouse system gets this right, and talks in great detail about authoritative registries. UCC 7, 9 and UETA screwed up.
They are bad law—literally incomprehensibly bad law.
The courts will probably eventually define 7, 9, and UETA into registry systems of some kind.
But until then, I would treat electronic negotiability systems as if they were rabid cows.”

May 26, 2010 | Unregistered CommenterAlvieC

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