Key Information and Facts Reveal Major Cover-up
"The Federal Reserve is neither truly federal,
nor a full reserve. It is not owned or directly controlled by the United States
government. The fact that the words 'United States Federal Reserve System' are
printed on every U.S. bank note thus raises serious questions."
How much do you know about the banking system and who
issues the money you carry in your pocket? Considering the vital role money
plays both in our individual lives and in the world, our educational system
teaches us amazingly little about how money is created, how banks operate, and
what causes the huge banking scandals and bankruptcies that have occurred.
After reading the information below, you will understand why this information is
kept quiet and why we feel it is important to reveal these major banking
cover-ups. The world's wealthiest bankers guard their
secrets very
closely.
The Federal Reserve: Neither Truly Federal Nor a Full
Reserve
Do you know who issues the money in your wallet or
purse? For readers located
in the U.S., take a look at the top of any U.S. bills and you will find
"Federal Reserve Note" printed along the top. In a small black circle
on the left side of these notes, you will also see the words "Federal
Reserve." It is the Federal Reserve which issues all bank notes in the
United States. To see just how much control the Federal Reserve has over the
issuance of U.S. currency, see their webpage at this link. Yet who owns the Federal Reserve?
Though the Board of Governors of the Federal Reserve is categorized as an
independent government agency, "The Fed" is not owned by the
government. The Supreme Court stated that "instrumentalities like the
national banks or the federal reserve banks, in which there are private
interests, are not departments of the government. They are private corporations
in which the government has an interest." You can verify this by reading
the court case at this link (case 406 F.3d 532) and going to Part II,
paragraph 9. This case further states that "each Federal Reserve Bank is
owned by the commercial banks within its district."
It's quite revealing that though the official website
of the Federal Reserve contains a detailed description of the Federal
Reserve that is over 20
pages in length, ownership of the Federal Reserve Banks is never even
mentioned. Could it be that this information is conveniently withheld to keep
the public from understanding who owns the banks which issue all U.S. dollars?
Though Federal Reserve Board members are appointed by
the U.S. President and confirmed by the Senate, the Federal Reserve is a
privately owned institution controlled mainly by large private banks. Once board members are appointed, the U.S.
government has no control over their decisions other than the president's
ability to remove a board member. Yet a study of the history
and functions of
the Federal Reserve reveals that powerful bankers such as J.P. Morgan have had
inordinate power and control over the formation and management of the monetary
policy of the United States through their power over the Fed. Congress
has virtually no influence over this incredibly powerful institution.
Neither does the Fed have reserves to back all of the
credit it issues. None of the money in circulation is backed by anything of
real value such as gold or silver. The backing of U.S. currency by a gold standard was removed under President Nixon in 1971. In fact, the Fed,
like all banks, at any one time has only 3 to 10% of all credit issued held in
reserve as bank notes. So the Federal Reserve is neither truly federal, nor a
full reserve. It is not owned or directly controlled by the United States government.
The fact that the words "United States Federal Reserve System" are
printed on every U.S. bank note thus raises serious questions.
The foundation for the Federal Reserve system was
crafted in the utmost secrecy in 1910 at the Jekyll Island
resort by
several powerful men with very close ties to the Rockefellers, theJ.P. Morgan family, and the Rothschilds — the richest and most powerful families in the
world at that time. A version of the legislation crafted eventually passed in
1913 over the objections of many who feared that turning over control of the
nation's money supply to a consortium of private bankers would inevitably only
produce more riches for the ultra rich at the expense of the general public.
Virtually everyone agrees that the Fed is highly
secretive. Wikipedia lists other criticisms of the Federal Reserve in
the below three paragraphs:
"A large and varied group of criticisms have been
directed against the Federal Reserve System. One group of criticisms, typified
by the Austrian
School, criticize the
Federal Reserve as an unnecessary and counterproductive interference in the
economy. Other critiques include arguments in favor of thegold
standard and criticisms
of an alleged lack of accountability or culture of secrecy within the Reserve.
Finally, a group of conspiracy theories make various charges against the
Federal Reserve, generally claiming the Federal Reserve System is actually a
scheme to enrich a few wealthy bankers at the expense of the public.
"Economists of the Austrian School such as Ludwig
von Mises contend that
the Federal Reserve's artificial manipulation of the money supply leads to the
boom/bust business cycle that has occurred over the last century. Many economic
libertarians ...
believe that the Federal Reserve's manipulation of the money supply to stop
'gold flight' from England caused, or was instrumental in causing, the Great
Depression.
"Nobel Economist Milton
Friedman said
he 'prefer[s] to abolish the federal reserve system altogether.' [13]. Ben Bernanke, Chairman of the Board of Governors of
Federal Reserve, stated: 'I would like to say to Milton [Friedman] and Anna [J.
Schwartz]: Regarding the Great Depression. You're right, we did it. We're very
sorry. But thanks to you, we won't do it again.'[22] [23]"
The Fractional Reserve System: Creating Money Out of
Thin Air
Another aspect of banking about which most people know
little to nothing is the fractional reserve system. Fractional-reserve banking refers to the standard banking practice of
issuing more money than the bank holds as reserves. Banks in modern economies
typically loan their customers many times the sum of the cash
reserves that they hold. Did you know that for every dollar in your checking
or savings account, the bank can legally loan out $10 or more?
Here's a description of fraction reserve banking's
origins from a standard university macroeconomics text [1]:
"When the ancients began to use gold in making
transactions, it became apparent that it was both unsafe and inconvenient for
consumers and merchants to carry gold and have it weighed and assessed for
purity every time a transaction was negotiated. It therefore became commonplace
to deposit one's gold with goldsmiths whose vaults or strongrooms could be used
for a fee. Upon receiving a gold deposit, the goldsmith issued a receipt to the
depositor. Soon goods were traded for the goldsmiths' receipts and the receipts
became the first kind of paper money.
"At this point the goldsmiths – embryonic bankers
– used a 100% reserve system; their circulating paper money receipts were fully
backed by gold. But, given the public's acceptance of the goldsmiths' receipts
as paper money, the goldsmiths became aware that the gold they stored was
rarely redeemed. Then some adroit banker hit on the idea that paper money could
be issued in excess of the amount of gold held. Goldsmiths
[then began to issue] additional 'receipts' ... into circulation by making
interest-earning loans in the form of gold receipts. This was the beginning of
the fractional reserve system of banking."
The college text from which the above quote is taken
does not question the propriety of goldsmiths creating these new
"receipts" or money without any gold backing, without any authority,
and indeed without any real reason to do so other than to enrich themselves. In
fact, the text even praises the questionable behavior of the one who began this
hidden form of corruption as "adroit."
The unsuspecting public had no idea that goldsmiths
were issuing paper receipts accepted as money which were backed by no gold
deposits at all for ten times or more the amount of gold that had been
entrusted to them. The goldsmiths were secretly creating money out of thin air.
They thus made themselves fantastically wealthy without anyone noticing what
was going on. To better hide this deceit and divert people's attention, the
goldsmiths stopped their old practice of charging for storing gold and instead
began to pay customers a small interest on their gold deposits to keep them
happy. Thus it was that modern day bankers were born.
Amazingly, the system has changed little today.
Macroeconomics professors, college texts, and all involved with banking almost
never question the ethics or morality of this fractional reserve system. No one
even questions in any meaningful way the ethics and corruption involved in
creating money out of thin air. In fact, the fractional reserve system was
formalized into law centuries ago and continues to be both legal and the
accepted common practice around the world today.
Have you ever wondered how banks afford those massive buildings
downtown if they charge only 10% or so on loans and pay 5% or less interest on
deposits? If bankers were not allowed to create money out of thin air, they
would be making only a few percent a year on every loan issued, far from enough
to build the towering skyscrapers owned by banks in practically every major
city. But by creating credit (money) using the fractional reserve
system, bankers can legally claim credit to 10 times or more the amount of any
loan. Now you can understand the foundation upon which global banking
empires are built.
As this system has been used for centuries by every
country in the world, it clearly works to maintain a relatively stable economic
order. We are not advocating a dramatic change of this system. We do, however,
feel that suppressing and otherwise hiding this key information is a massive
deception which does not serve the public and only serves to allow the bankers
to easily become excessively powerful and corrupt.
We recommend these revealing documentaries on money
and the banking cover-up:
http://www.personalgrowthcourses.net/video/monopoly_men - Monopoly Men (45 min.)
http://www.pbs.org/wgbh/pages/frontline/money... - Money, Power & Wall Street (PBS - 4 hours)
http://www.pbs.org/wnet/ascentof... - The Ascent of Money: A Financial History of
the World (PBS)
https://www.google.com/search?q=money... - Money Masters (210 min., transcript available here)
These fact-filled documentaries do an excellent job of
introducing and educating viewers to key, little-known facts which impact our
global economy and politics. We encourage you to have a healthy skepticism of
what is presented, yet also to have an open mind to the possibility that much
of what is presented is based on verifiable evidence. Note that the Ascent
of Money has four parts, each one hour in length. The first two parts
are excellent in revealing the hidden history of money in our world, though the
third and fourth parts on more recent history are much weaker.
You can help to inform others of what is going on by
educating yourself with the above videos and spreading the word on the banking
and financial cover-up. For what you can do about it, see below. Thanks for
caring.
Important Related Topics:
For a treasure trove of major media
articles revealing blatant manipulations by top bankers, click here.
A more thorough history of the development of
banking and more is available here.
For a top professor's 10-page summary of the
powerful role of bankers throughout history, click here.
Further excellent information on this vital issue
with realistic proposals for empowering change, see the American Monetary
Institute's website at http://www.monetary.org.
And for a highly decorated U.S. General's essay
revealing huge manipulations and profiteering by major banks in wartime, click here.
For lots more, see our Banking Corruption Information
Center at this link
[1] McConnell, Campbell R. & Brue, Stanley L., Macroeconomics: Principles, Problems, and Policies, Thirteen Edition, McGraw-Hill, Inc., 1996, p. 277
- Read
astonishing summaries of revealing major media reports on banking and
Federal Reserve manipulations available at this link.
- Learn
more about major money manipulations and what we can do about it in this
powerful lesson from
the free Insight
Course.
- Explore
inspiring ideas on building a brighter future by reading this short essay.
- Spread
this news on banking and financial cover-ups to your friends and
colleagues, and bookmark this article on social networking websites using
the "Share" icon below, so that we can fill the role at which
the major media is sadly failing. Together, we can make a
difference.
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