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The Federal Reserve System Part 1

Andrew Jackson was ahead of the curve regarding the Federal Reserve
Andrew Jackson was ahead of the curve regarding the Federal Reservewww.commonsenseevaluation.com

In the U.S., communication and transportation are controlled and regulated by the federal government by the Communications Act of 1934 and the Department of Transportation. Additionally we have the Interstate Commerce Commission which was establish in 1887 to regulate rail transportation and control competition for the monopolistic rail industry, which has evolved in also covering motor carrier, barge, and airline industries. If we throw in the Federal Aviation Administration it is easy to see that we aren’t so free after all.

This is not to say that we don't need rules and regulations to protect and serve the public, but with federal bureaus, coupled with state agencies, I have to think that there is a lot more competition from the various government entities to wield their control, than competition among the public sector just trying to make a living. In fact, government has gotten so intrusive, that today they are in our bathrooms regulating our toilets; in our homes and offices regulating our light bulbs, and now not only regulating what kind of food we can purchase at a fast food restaurant, but they're after our food and beverage vending machines as well! Even our health is coming under their strict regulations and pretty soon we will have few freedoms left.

Of all the government departments, bureaus, agencies, and regulatory entities, nothing is more egregious and no other government scheme has done more to gain control of our lives than The Federal Reserve. The secretive nature of this unruly beast should appall all Americans. The Fed as it has become known is made up of twelve regional banks which are privately owned and most of their directors are chosen by their stockholders. Most people knowledgeable about the inner workings of the Fed see the U.S. Federal Reserve System in the hands of an elite group of super wealthy individual international bankers (also referred to as Globalists) with only a single goal in mind which is to control the entire global economy in their own self interests. This is not just some conspiracy theory cooked up by Senator Ron Paul, but provable beyond a reasonable doubt.

The regional Federal Reserve Banks are privately owned, and most of their directors are chosen by their stockholders. To back the notion that "Federal Reserve System is in the hands of an elite group of super wealthy individual international bankers", it is believed that control is in the hands of a very few people holding "class A stock" in the Fed, the class of stock available, which is actually stock in each regional bank.

Individuals like you and me can not own stock in Federal Reserve Banks. The stockholders in the 12 regional Federal Reserve Banks are the privately owned banks that fall under the Federal Reserve System. These include all national banks (chartered by the federal government) and those state-chartered banks that wish to join and meet certain requirements. About 38 percent of the nation’s more than 8,000 banks are members of the system, and thus own the Fed banks.

The stock, furthermore, does not carry with it the normal rights and privileges of ownership. Most significantly, member banks, in voting for the directors of the Federal Reserve Banks of which they are a member, do not get voting rights in proportion to the stock they own. Instead, each member bank regardless of size or stock holding gets one vote. Concentration of ownership of Federal Reserve Bank stock, therefore, is irrelevant on the issue of who controls of the Federal Reserve System.

The power granted to the Federal Reserve is awesome in our supposed free market economy. Its dealings are so secretive that like so many other Government programs that go unchecked, there has never been a Congressional audit of the scheme and every time we have an elected President or a strong Congressional voice who tries to open the can of worms of the Fed, they end up being neutralized by some iniquitous or nefarious force…in other words…"Don't even think about it"!

The 7th President, Andrew Jackson, became the first American president to experience an assassination attempt, by Richard Lawrence, an unemployed house painter. Jackson was very outspoken regarding the issue of a Center Banking System and most are convinced the assassination attempt was retribution for opposing The First Bank of the United States which was the initial central banking scheme enacted in the U.S…

"The bold effort the present central bank had made to control the governments ... are but premonitions of the fate that awaits the American people should they be deluded into a perpetuation of this institution or the establishment of another like it."

"Gentlemen, I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank…You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves."

President Zachary Taylor 12th President was rumored to have been assassinated, though his death occurred after eating a bowl of cherries and milk. Toxicology as it was in those days was not like it is today, so it was never proven the death came by way of arsenic poisoning. Taylor was in strong disagreement with the Democrats over the issue of a strong national bank and opposed using slaves for other than farming cotton and sugar. Many historians feel however, that it was his position in opposition to a privately owned central bank, that sealed his fate.

James Buchanan, the 15th President of the United States, was the target of an assassination attempt when someone laced the food at a banquet with arsenic. More than thirty others died from the poisoning, but Buchanan survived. Like Presidents Jackson and Taylor, he too oppose the idea of a Central Banking Scheme

Our 16th President, Abraham Lincoln, needed money to finance the Civil War, and the international bankers offered him loans at 24-36% interest. Lincoln refused their offers, which by any standards were outrageous because he didn't want to plunge the nation into such debt. He was able to convince Congress to authorize the printing of U.S. Treasury Notes. During the Civil War 400 million "Greenbacks" (debt and interest-free) were printed and used to pay soldier salaries and bills. The money was backed by the faith and credit of the U.S.

Turning down the offers from the international bankers was probably signing is own death warrant, as the bankers were unable to profit from the War Between the States. It was however a great blessing and showed the world that the correct way to collateralize our monetary system is by the GDP (Gross Domestic Product) of the country and not a commodity (like gold and silver) that rises and falls with supply and demand. The concept of not backing currency with a commodity is termed a "fiat money system".

After Lincoln's death, the government revoked the Greenback law ending Lincoln's debt-free, interest-free money. A new national banking act was enacted and all currency became interest-bearing, debt instruments, again, allowing the international bankers to control the U.S. through the debt of the government and its people.

A monetary system is such a powder keg issue that when the subject is raised, it can easily become a life-threatening issue, as those against a central banking scheme, such as Jackson, Taylor, and Buchanan, and those for, like Lincoln who wanted a central bank system with the ability to print money that the government could use that was interest and debt-free, can attest. All were among the staunchest opponents of the idea of an international central banking cartel that controlled the politics and governments in Europe.

The 20th President, James Garfield opposed a private national bank claiming, “Whoever controls the volume of money in our country is absolute master of all industry and commerce…and when you realize that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate.”

William McKinley, the 25th President, believed that the chief duty of the government in reference to the monetary system was to coin/print money and declare its value, but he had serious reservations as to whether Congress was authorized by the Constitution to make any form of paper money legal tender. He did agree that a country might require a fiat monetary system by the necessities of war and its convenience of use, but that printed money should depend for its value on its prompt redemption in coin (gold or silver) at the will of the holder…a concept adopted with the Coinage Act of 1873. He went on to support the Gold Standard Act of 1900. He argued, "These notes are not money, but promises to pay money. If the holders demand it, the promise should be kept".

"Our financial system needs some revision; our money is all good now, but its value must not further be threatened. It should all be put upon an enduring basis, not subject to easy attack, nor its stability to doubt or dispute. Our currency should continue under the supervision of the Government. The several forms of our paper money offer, in my judgment, a constant embarrassment to the Government and a safe balance in the Treasury."

The 35th President, John F. Kennedy, issued Executive Order 11110, which called for the issuance of new currency - the United States Note – which basically stripped the Federal Reserve Bank of its power to loan money to the United States Federal Government at interest. With the stroke of a pen, President Kennedy declared that the privately owned Federal Reserve Bank would soon be out of business. The United States Notes were issued as an interest-free and debt-free currency backed by silver reserves in the U.S. Treasury.

Kennedy was assassinated on November 22, 1963, and following the assassination, the Notes were immediately taken out of circulation. Executive Order 11110 would have prevented the national debt from reaching its current level of $17.5 trillion if subsequent Presidents were to have maintained the Note System. With that system in place it would allow the government the ability to repay its debt without going to the private Federal Reserve Banks and being charged interest to create new "money". Unfortunately Federal Reserve Notes now in use continued to serve as the legal currency of the nation, and to which we taxpayers continue to pay interest to the Federal Reserve Bank.

I will continue with the Federal Reserve in my next article but leave you to ponder the words of Louis T. McFadden in 1932, Chairman of the House Banking Committee (1928-1935). Because of his vocal opposition to the Federal Reserve System, after two attempts on his life in 1933 and again in 1934, McFadden died "mysteriously" in 1935.

"We have in this country, one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board. This evil institution has impoverished the people of the United States and has practically bankrupted our government. It has done this through the corrupt practices of the moneyed vultures that control it." Congressman Louis T. McFadden in 1932