The Federal Reserve System

"I sincerely believe... that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity under the name of funding is but swindling futurity on a large scale."

--Thomas Jefferson

WHAT IS THE FEDERAL RESERVE?

· First off, the Federal Reserve is NOT a government agency. But, it is not a private organization either.

· The Federal Reserve is a banking cartel. It is a group of private banking interests that have brought the government in as a partner in order to use federal law to enforce the cartel’s policies.

· The Federal Reserve System is in fact a banking cartel with a monopoly over the creation of the nation’s money supply.

· One of the functions of the Fed is to protect the large banks by passing their losses off to the tax payers.

· The purpose of the Federal Reserve System is to promote the best interests of the banking members of the Federal cartel.

THE CREATION OF THE FEDERAL RESERVE

· The Federal Reserve was not formed in Congress, but on a private island off the coast of Georgia called Jekyll Island.

· At that time, Jekyll Island was owned by J.P. Morgan.

· Those who attended the meeting on included : Abraham Andrew, assistant secretary of the treasury; Frank Vanderlip, president of the National City bank of New; Henry Davison, senior partner of J.P. Morgan Company; Charles Norton, president of the First National Bank of New York; Benjamin Strong, the head of J.P. Morgan’s Bankers Trust Company and soon to the 1^st head of the Federal reserve; and Paul Warburg, brother to Max Warburg, representative of the Rothschild family, and partner of Kuhn Loeb &Company.

· This meeting took place in November of 1910 under great secrecy. It was not until many years later through the memoirs of those who attended the meeting that we find out what in fact actually went on that day.

· When the Federal Reserve act was introduced to the American people they were told that it was to break the grip of the money trust on the nation’s currency. But what they were not told is that it was actually written by the money trust.

HOW MONEY IS CREATED OUT OF NOTHING

· It starts with the government’s side in the partnership when Congress needs more money.

· When Congress needs more money and does not want to raise taxes, they must borrow the money; but when it comes time to pay back the loan, they must borrow more money.

· The continuation of this process is what creates the national debt.

· When Congress needs to borrow more money than is available the Federal Reserve steps in.

· Through the partnership with the government, the Federal Reserve agrees to literally create the money.

· This money is loaned to the government at interest.

· This is how the money supply continues to grow.

· If you borrow money from someone who actually has it then the money supply does not increase, it’s simply is transferred.

· Now, when the government issues this money to its citizens through spending, that money will eventually be deposited into a bank.

· Private Banks can in turn loan out $9.00 for every dollar deposited.

· This is how our fiat money is created.

· If we were to repay all loans, there would not be one penny left in circulation.

· Every single dollar in our economy is based upon debt. The dollar is nothing more than debt.

THE PROBLEM

· When you give men the power to create money out of nothing that is exactly what they do.

· Since antiquity, men that hold this power have abused it and they have created more money at a rate faster than the expansion of goods and services.

· This is inflation.

· Now, there is a misconception that inflation is the rise in prices of goods and services. Inflation is actually the decline in the value of the dollar.

· This lost purchasing power is a hidden tax.

· Inflation is the result of the power to create money out of nothing.

· And that is the power we have given to the Federal Reserve System.

· Therefore, the Federal Reserve System is the agency of a hidden tax called inflation.

THE SOLUTION

· Our paper currency must eventually be backed by gold or silver in order to protect the purchasing power of the common man.

· The purchasing power of 1 ounce of gold is exactly the same as it was 2000 years ago. Because they are both based on production.

· The Federal reserve system of today must be phased out gradually just as it has been introduced gradually.

· The first step is for people to realize this is a fiat monetary system.

· The second step is the incremental abolition of the Federal Reserve over the next 30 to 40 years.

· If this happens too quickly the elites in control of the banking system will simply implement international monetary system as we see in the World Bank the International Monetary Fund and the World Trade Organization.

· An attempt to implement this system has been seen at this year’s G-20 meeting. The president has resisted this attempt but it is only a matter of time before the bankers implement their policies over the United States people just as they did on Jekyll Island 1910.

· If we allow ourselves to become completely dependent on the state, we lose our freedom.

· This must not be allowed to happen!

"Put down all banks, admit none but a metallic circulation that will take its proper level with the like circulation in other countries, and then our manufacturers may work in fair competition with those of other countries, and the import duties which the government may lay for the purposes of revenue will so far place them above equal competition."

--Thomas Jefferson