The Federal Reserve Act: WHAT IS FIAT CURRENCY WHAT IS MONEY?

 

 

 

What is the Federal Reserve? An old saying tells us, “A rose by any other name is still a rose.” “Something’s happening inside” Unfortunately, the same cannot be said about the Federal Reserve System. First, most people refer to it as the Federal Reserve Bank. It is not a bank. It is a system. Second, the Federal Reserve System is not federal. It is a privately held corporation owned by bankers… most of whose names are seen on Wall Street (though international banks now own larger and larger shares of the Federal Reserve System, placing control of America’s economy in the hands of non-American foreigners). A recent audit showed that during the period from December 1, 2007 through July 21, 2010 the Fed made $16 trillion dollars in loans to US banks and corporations and to foreign banks. Foreign banks? That’s right… foreign banks. The bank bailout of September 2008 was nothing compared to secret loans made by the Federal Reserve System about which the Congress was never informed. To place this extraordinary sum in perspective, the US GDP (Gross Domestic Product) is about $14 trillion. The US total national debt is about $18 trillion. Thanks to Congressman Ron Paul who kept pressure on the House of Representatives to pass legislation ordering the General Accounting Office audit of the Fed, The loans were to cover up secret bank and corporate bailouts. They were made to prevent the banks and corporations who borrowed the money from bankruptcy. The money was loaned at nearly zero percent (.01%) interest – as in 1/10th of 1%. Citigroup, Inc (Citibank): $2.5 trillion Morgan Stanley: $2.04 trillion Merrill Lynch & Co.: $1.949 trillion Bank of America Corporation: $1.344 trillion Barclays PLC (United Kingdom): $868 billion Bear Sterns Companies, Inc.: $853 billion Goldman Sachs Group, Inc.: $814 billion Royal Bank of Scotland PLC (UK): 541 billion JPMorgan Chase: $391 billion Deutsche Bank AG (Germany): $354 billion United Bank of Switzerland AG: $287 billion Credit Suisse Group AG (Switzerland): $262 billion Lehman Brothers Holdings, Inc. - NYC: $183 billion Bank of Scotland PLC (UK): $181 billion BNP Paribas SA (France): $175 billion Dexia SA (Belgium): $105 billion Wachovia Corporation: $142 billion Dresdner Bank AG (Germany) $123 billion Societe Generale SA (France): $124 billion So, now that we know the Federal Reserve System is not only unlawful under the Constitution and we also know it takes part in unlawful activities involving banks and corporations around the world over which it has no jurisdiction, let’s look at how it is structured. The Federal Reserve Act was passed on December 22, 1913 by Congress… just prior to its annual Christmas recess. It was signed into law the next day, December 23rd, by President Woodrow Wilson. The Act transferred the right to print currency from the United States Congress to an independent and privately-owned entity calling itself a bank but which is not a bank – changing the Constitution which cannot be changed without Amending it. The Fed is somewhat federal in form, but is very privately owned and operated. President Wilson lived to regret signing The Federal Reserve Act and, on his deathbed, made the following statement: “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.” Basically, the Federal Reserve System was given a cleverly deceptive name and gave Americans a private money monopoly which is owned by its member banks but controlled by too big to jail banksters. It is run utilizing a highly complex system designed to ignore or evade truth rather than being transparent. In truth, the Federal Reserve System has unlimited drawing rights on the full faith and credit of the United States – in case you haven’t thought about what that means, “full faith and credit” means on your back and on my back. Our tax dollars pay the interest on the Federal Reserve System’s loan interest charged to the government. This right to sell Treasury Bonds and otherwise manage the American economy by creating money whenever it wants so it can give $16 trillion to foreign banks and corporations costs the Fed nothing… but the government pays the Fed for the right to borrow money from it. We taxpayers pay interest on those loans! Sounds crazy, doesn’t it? It is crazy! You know what’s even more crazy? We, the American taxpayer, are on the line for paying the debts of the Federal Reserve System. At least, that’s what they say. I happen to think we are not and will explain why in a separate article about immoral debt, but in the meantime, why do Americans tolerate this kind of nonsense? The Federal Reserve System is comprised of 7 Governors who serve as the Board of Governors and who meet in Washington, DC. The 7 Governors are nominated to the position by the President of the United States and are confirmed by the Senate. Since today it is an accepted fact of life that Presidential appointments are political favors or payoffs, the political nature of the Federal Reserve System should surprise no one. All U.S. banks are regulated by the Federal Reserve, directly or indirectly. Only those banks that are nationally-chartered are required by law to be members. New York’s Wall Street banks own a majority share of the Fed. The larger the member bank, the more Federal Reserve corporate stock it owns and the greater degree of control it exercises over the Fed’s policies. If you’ve wondered why New York banks seem to have so much control over the Fed, perhaps that helps you understand. If you’ve wondered why Wall Street’s investment banks were so anxious to become part of the commercial banking industry – it is commercial, not investment banks, that hold stock in the Federal Reserve System – now you know why Phil Gramm (who was R-TX and an economist to boot) had to get the Gramm, Leach, Blyley Act passed to replace the Glass Steagall Act (which prevented investment banks from merging with commercial banks). Before talking about what the Federal Reserve System does, one other important fact needs to be mentioned: The Federal Reserve is an unlawful organization. Let’s take a look at the Constitution of the United States. Article 1 Section 8 of the Constitution says the following: The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States; To borrow money on the credit of the United States; To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes; To establish an uniform Rule of Naturalization, and uniform Laws on the subject of Bankruptcies throughout the United States; To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures; To provide for the Punishment of counterfeiting the Securities and current Coin of the United States; To establish Post Offices and Post Roads; To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries; As you can see, THE CONGRESS, not the Federal Reserve System, “shall have the Power to lay and collect Taxes, Duties, Imposts (which means taxes) and Excises” (taxes on consumer goods). Article 1 Section 8 says THE CONGRESS, not an organization called the Federal Reserve, is to coin Money, regulate the Value thereof, and of foreign Coin.” This week the Federal Reserve System will celebrate the 100th anniversary of its founding. Resulting from secret negotiations between bankers and politicians at Jekyll Island, the Fed’s creation established a banking cartel and a board of government overseers that has grown ever stronger through the years. One would think this anniversary would elicit some sort of public recognition of the Fed’s growth from a quasi-agent of the Treasury Department intended to provide an elastic currency, to a de facto independent institution that has taken complete control of the economy through its central monetary planning. But just like the Fed’s creation, its 100th anniversary may come and go with only a few passing mentions. Like many other horrible and unconstitutional pieces of legislation, the bill which created the Fed, the Federal Reserve Act, was passed under great pressure on December 23, 1913, in the waning moments before Congress recessed for Christmas with many Members already absent from those final votes. This underhanded method of pressuring Congress with such a deadline to pass the Federal Reserve Act would provide a foreshadowing of the Fed’s insidious effects on the US economy—with actions performed without transparency. Ostensibly formed with the goal of preventing financial crises such as the Panic of 1907, the Fed has become increasingly powerful over the years. Rather than preventing financial crises, however, the Fed has constantly caused new ones. Barely a few years after its inception, the Fed’s inflationary monetary policy to help fund World War I led to the Depression of 1920. After the economy bounced back from that episode, a further injection of easy money and credit by the Fed led to the Roaring Twenties and to the Great Depression, the worst economic crisis in American history. But even though the Fed continued to make the same mistakes over and over again, no one in Washington ever questioned the wisdom of having a central bank. Instead, after each episode the Fed was given more and more power over the economy. Even though the Fed had brought about the stagflation of the 1970s, Congress decided to formally task the Federal Reserve in 1978 with maintaining full employment and stable prices, combined with constantly adding horrendously harmful regulations. Talk about putting the inmates in charge of the asylum! Now we are reaping the noxious effects of a century of loose monetary policy, as our economy remains mired in mediocrity and utterly dependent on a stream of easy money from the central bank. A century ago, politicians failed to understand that the financial panics of the 19th century were caused by collusion between government and the banking sector. The government’s growing monopoly on money creation, high barriers to entry into banking to protect politically favored incumbents, and favored treatment for government debt combined to create a rickety, panic-prone banking system. Had legislators known then what we know now, we could hope that they never would have established the Federal Reserve System. Today, however, we do know better. We know that the Federal Reserve continues to strengthen the collusion between banks and politicians. We know that the Fed’s inflationary monetary policy continues to reap profits for Wall Street while impoverishing Main Street. And we know that the current monetary regime is teetering on a precipice. One hundred years is long enough. End the Fed. The Coming Return of the Real US Dollar   by  *Lee Wanta (Edited by Preston James, Ph.D.) The Federal Reserve System (aka the “Fed”), a bank franchisee of the City of London private Zionist Bankers, is now cornered and in a predicament with no simple solution possible. It is like the tree trimmer cutting off the limb he is standing on or the painter painting himself into a corner with no way out. This impasse has no apparent solution for these Private Federal Reserve “Officials” and the real World Zionist Powers behind them (whom they serve). The Federal Reserve System has operated as an Unregulated Checkbook for an out of control, out of touch, bought-off Congress that takes its marching orders from Israeli espionage fronts and wealthy lobbying groups inside America like AIPAC. These Israel Espionage Fronts inside America are controlled by the World Zionists operating out of the City of London Financial District, a separate country with its own Police Force and Ambassadors. Normally any governmental spending body such as Congress would be limited by the amount of taxes collected, and would have to balance its books like any normal family. However, because the Federal reserve System issues as much money as Congress want to borrow, there have been no real spending limits. The alleged debt owed by Americans (with interest accruing constantly) to this private Federal Reserve System is now estimated to have exceeded 14 trillions USDollars, or approximately five times the current annual Congressional Budget, a staggering total, and approximately one year of America’s Gross National Product. And the most startling thing about this supposed “National Debt” is that is clearly Illegal, Unconstitutional, and actually imaginary. Yes, that’s right, Americans cannot be legally charged interest or principal for using their own money. How did this illegal Ponzi scheme ever develop and why would our Congress allow such a fraud to be perpetrated? Our Founding Fathers intended the USG to have a very limited role and to be financed from Excise and import taxes, never a personal income tax. There was a secret Coup d’ etat in 1913 when the City of London Secret Agents were able to get their illegal, Unconstitutional Federal reserve Act passed in the U.S. Congress with no quorum present on a Friday night before Christmas.(1) Numerous Members of Congress were influenced, bribed and even coerced to go along with this intended legislation being covertly promoted by the City of London Rothschild Zionist private Central bankers. The rest is history and is a secret most sordid one at that. The Federal Reserve Board run by the individual Banking Families who own the stock is a closely guarded secret. This Board has no USG oversight and is beyond the current reach of the USG as long as Congress, the Judiciary and the Administration refuses to enforce the U.S. Constitution, the Bill of Rights or the Rule of Law. Consequently the the City of London Zionist Bankers have been able to remotely control the American Economy by determining monetary policy and setting interest rates and determining how much money is issued. This unregulated issuance of money and the providing of it to greedy Members of Congress to distribute to their campaign sponsors and “special friends” through special interest legislation has resulted in a complete disconnect between Congressional Spending and any true financial reality. It is now generally recognized by Political Insiders that immense kickbacks are provided in very creative ways to those that vote for these “Special Interest,Corporate Welfare” legislation. These kickbacks are often disguised as very liberal honorariums for short meaningless speech appearances, large PAC campaign donations, special all-paid junkets, lucrative revolving-door jobs and consultancies, and even special deposits to offshore accounts. And beside the so-called “Money” issued (FIAT money issued and put into circulation and use by the Federal Reserve System), is not real money at all, but consists of Debt-based FIAT monetary Notes which USG laws have mandated must be accepted as legal tender for all debts inside America. yes, technically a Note is a loan for which the Principal and the Interest must be repaid. Thus all the Interest and Principal paid back to the Federal Reserve System is truly “Money for Nothing.” A very crafty trick. This is truly a very crafty trick performed by the private Central Bankers to acquire the wealth of the users of their FIAT debt-note money. American used to have real money issued that was redeemable in Gold and Silver. They were called USDollars and were either Gold Certificates or Silver Certificates. But all that changed when President Nixon changed the USDollar to have no real backing by Gold and Silver anymore as he negotiated an international agreement for the USDollar to become the US Petro Dollar and be used for all crude Oil Transactions. Making money from Nothing. What this means now in practical terms that when the Federal Reserve System creates “Money” and puts it into circulation and use, it retains ownership of the Principal and expects it to be repaid with Interest which constantly accrues. This is what the so-called National Debt consists of and is clearly financial fraud since FIAT/fake currency is not real money and is not allowed to masqueraded as such by the US Constitution. Calling issued debt-notes money is the biggest trick ever perpetrated against the American public and perhaps the greatest financial fraud in history against the American Citizen. Certainly Madoff should be proud of his Federal Reserve System Associates and is a “chip off the old block” so to say. World’s largest Ponzi Scheme. The Federal Reserve System has become the World’s greatest Ponzi Scheme because it has issued an absurd amount of money to Congress to spend like drunken sailors all over the World. In fact so many American debt-notes aka “US Petro Dollars” have been spent and disbursed all over the world that experts now believe that eventually, if not sooner than later, the value of the US Petro Dollar will easily descend to almost nothing. This descent to minimal value will likely be greatly accelerated when the BRICS ECONOMIC DEVELOPMENT BANK comes on line in the near future. The US Petro Dollar has functioned as the World’s Reserve Currency ever since an arrangement was negotiated by President Richard Nixon who took America off the Gold Standard at that time. But once the BRICS System goes live, many economic experts expect the Worldwide USDollar Derivative System, the largest Ponzi scheme in History, to collapse like a house of cards. Once this happens there is likely to be a catastrophic collapse in the vale of the USDollar and it will become unlinked to oil sales and will no longer be the World’s Reserve Currency. Now for the really bad news. As of right now there are supposedly 139 nations that have signed onto the BRICS System, either by actually signing the Agreement or sending a Letter of Intent to do so. This now includes Germany, France, Australia and picture this, even the UK. It is no secret that the BRICS System originated in the imagination of the leaders of Russia, China and Brazil who felt that they had been used and abused due to the USD being used against them. Much of the World now feels that America has used the US Petro Dollar as a means to abuse them economically and politically and want to completely detach all their trade from it and eliminate the great advantage American economy has had from their debt-notes being accepted as the World’s Reserve Currency. Perhaps the USG view the BRICS phenomena as the pet-project of President Putin and the Russian Federation and is now attempting to start a New Cold War despite the fact that the Soviet Union and Russian Bolshevism no longer exists in the Russian Federation, only in the City of London where it originated, and in Israel, the sole surviving nation-state remnant of Russian Bolshevism. How did this illegal, Unconstitutional Federal Reserve System which claims to be a Bank and a Cash Reserve, when it is neither, get themselves and America into this current impasse and unresolvable debacle in the first place? This was all accomplished through political intrigue and covert operations run by the City of London Rothschild run Zionist Central bankers. it was also accomplished by a partnership between Big Oil run by the World Zionists and the private Federal reserve System. Here is the part that is hard for most to fathom. The Zionist controlled Big Oil companies have used America’s debt-note system as political and financial cover to enslave the world and make many millions complete debt-slaves to the City of London Bankers and their stateside franchisee the Federal Reserve System. Accountability is perhaps right around the corner. The Federal Reserve System’s proxy hold on the World is now facing a sudden catastrophic end. Those who created and still run this huge Ponzi scheme and fraud against the American people and the  World, are going to fall flat on their faces and be fully exposed. they are likely to then be held accountable for this immense financial fraud and theft of the ages upon America and the World. Unless……….they create some immediate catastrophic cover and use this as a means to activate their World Zionist secret police occupation force DHS inside America. Serious options for the Bankster Kingpins to be able to head-off a very serious problem of impending and complete accountability to the public they have asset stripped of most of their wealth, jobs and futures. If the US Petro Dollar collapses and a catastrophic Global reset occurs as is expected (unless somehow mitigated), those bankers responsible will be fingered and held accountable one way or another unless they do something major. Their options include starting a nuclear WW3 with the Russian Federation and/or China, instituting a major epidemic that kills many millions inside America, or starting a new American Civil War between their Zionist Occupation force Homeland Security (DHS) and the American Gun Owners, hunters, Veterans, Patriots and folks who have “woken up” to the USG scam and major illegal power grab since 1913 and the USG Assassination of JFK. The USG is now working hard to start a major war with Putin and the Russian Federation over Crimea using Cutout Assistant Secretary of State Victoria Nuland. She has admitted that the USG has already funneled 5 Billion USD to the Ukraine Leaders, and many experts view this as money to support Terrorist actions and attacks against Pro-Russian Federation people living in the Ukraine, especially Crimea. Putin, the consummate Statesman, doesn’t show his cards, but perhaps holds a full hand. So far, Putin has shown himself to be a true Statesman and has avoided the USG provocations which are clearly dictated by the City of London World Zionists. It should be pointed out that it is probably not a wise choice to continue these provocations unless the USG truly wants a nuclear WW3, since experts who know Putin personally, claim that he will become a very resourceful and competent opponent in any forced war effort against the Russian Federation. So far there appears to be an unwillingness in the High Command of the US Military to engage in any Nuclear WW3 with the Russian Federation. It such is ordered I suspect there will be stalling and recommendations further analysis and space based satellite Intel must be reviewed carefully. Avoidance of accountability for this intergenerational group of Zionists that seized America in a secret Coup d’ etat in 1913 with the passage of the illegal, Unconstitutional Federal Reserve Act is dependent on the Zionists getting complete control over America, disarming all Americans, and instituting of martial law using their Secret Police Occupation Army inside America, Homeland Security (DHS). If they fail in this, basically its over for them and their evil spell on America will be forever broken and millions will demand justice.  And as the masses demand justice they will insist on prosecutions of all involved, bankers and Politicians and actions to “claw-back” all the alleged lawful BAILOUT funding, as well as the complete cancellation of all the USG deficit which is a phony debt anyhow. It would be an understatement to describe these perps who run this huge Ponzi Scheme as in a state on ongoing panic. Normally their Hubris would deaden any such anxiety or fear, but this time they can easily imagine their whole system coming down upon them like a House of Cards blown apart by the BRICS System as soon as it comes on line. The World Zionists tried to draw our Great Nation America into another major war for Israel and the Multinational Oil companies. President Obama is caught right in the middle of all this. His current strategy is to beg for an impeachment attempt which he knows will be blocked in the US Senate where he has a clear majority of Democrats. He believes this will strengthen his position and he can say, “See I am the real President and cannot be impeded any longer.” Then perhaps he plans to keep instituting what he can’t get Congress to do using “Executive Orders” which many view as illegitimate, unlawful and Unconstitutional. Actually he is not really the President at all and neither were any others supposedly elected after President Ronald Reagan became President on January 20 1989 after winning his election.(2) Lately President Obama has been threatening Putin and the Russian Federation with serious sanctions. This has been unwise because Putin hand other nations have countered by making huge Intel dumps into the public sector of exceedingly embarrassing incriminating information related to the hijacking and asset stripping of America by World Zionists working out of the City of London and their use of Nuclear Blackmail to manipulate and control numerous US presidents since Ronald Reagan. European Allies are ditching America at an unprecedented rate as never before. The US Administration and the AIPAC controlled members of Congress were hoping that Germany and France would join the US sanctions against the Russian Federation.  No dice, they both buy a great deal of oil and Natural gas from the Russian Federation and understand such an actions would be stupid, easily ending up doubling their pricing of such or even higher. Conclusion: There are numerous Intel insiders and true Patriot “Intel Cowboys — White Hats”, members of the High Military Command and many others who are working to restore the American Dollar to what it should rightfully be, real true Constitutional money, backed by Gold and other commodities. This coming major World Financial Reset should more realistically be called a World Monetary “Restart” or “Re-grouping” rather than “Reset.” The final result of all this is likely to be a major Restart and Re-grouping of monetary and credit policy inside America and a restoration of Constitutional currency without offshore, City of London controlled foreign invaders disguised as bankers. As long as cooler heads prevail and prevent the World Zionists invaders and hijackers of America from starting a nuclear WW3, or a major new war in the Mideast or the Ukraine, or Homeland Security from provoking a major Civil War inside America, it looks like Americans will see a return of the real USDollar, real United States Constitutional Money. *Lee Wanta was a former Presidential Secret Agent under the Totten Doctrine [92 U.S. 105, 107 (1875), National Security Decision - Directive Number 166, dated March 27, 1985, inter alia] under U.S. President Ronald W. Reagan, whom some experts consider to be our last legally and duly elected President. Ambassador Wanta served – under Presidential Mandate – as a close personal consultant to President Reagan and was credited with having a major role engineering an end to the Soviet Union Cold War and the “tearing down of the Iron Curtain”. Ambassador Wanta negotiated a ground-breaking Agreement of Cooperation between the United States of America and the new Russian Federation. This historical Agreement was a notable win/win situation based on a new mutual respect for each others borders. An important Part of this Agreement was to never interfere with nations bordering each other’s country, which the USG is now violating. Ambassador Wanta’s remarkable story is now revealed in detail for the first time in a book authored by his biographer, Marilyn MaGruder Barnewell, titled, “Wanta! Black Swan,White Hat”, and numerous articles written about his detailed plans to revitalize America which have been published on  www.veteranstoday.com.(3)