View Full Version : US Financial Crisis. The Federal Reserve - as Federal as Federal Expresss

Roger Sofarover
25th Sep 2008, 15:05
This thread was started as a result of a post on another. I did not want to contribute to thread drift and deem this to big a subject to ignore. I wonder how long the thread will last:(

The subject is The Federal Reserve, as many of us may think that bastion government bank behind the US economy. Only it is not in any way shape or form a government bank or agency. It is a private bank owned by and for the benefit of private shareholders.

US citizens are suffering very badly at the moment, and the main reason for the demise of the American economy is the Federal Reserve.

Does anybody know anything about the Federal Reserve? Suffice to say it is as Federal as Federal Express! It is not a US government owned bank or agency. It is a private banking system, owned by private bankers who pull all the strings in the US. For some reason Wilson Woodrow allowed the passing of the federal Reserve Act, to pull the US out of the dwang many years ago. The great depression was meticulously engineered and the bankers who did it then stepped in with an offer that could not be refused.

What the US government did was to allow a private bank with private shareholders to print its money. The government then pays the Federal reserve interest on that money. There is no 'reserve'. The Fed Res just continue to write blank cheques. When you and i write a cheque for say 1000 we have to make sure we have 1000 in our account. The federal reserve just print it, it is as simple as that, and then claim the interest on the money they pay the government. Every single Nickel of tax collected from US citizens goes to pay the interest on Federal reserve 'Loans'. Money which never existed until it printed it. According to the 16th ammendment there is absolutely no law that requires any US citizen to pay tax.

The latest turn of events are very frightning. Bush is saying 'we must take the $700 Billion dollar bail out'. Where will the money come from? The Fed Res. No wonder the Chairman of the Fed Res is saying act quickly. The Fed Res will then have almost total control of the entire monetary system in the US. It is accountable to no one, it is not subject to audit of any description.

The only way for the American people to get out of this nightmare situation, where many are losing their homes, is to force the government to scrap the Federal reserve and put the control and allocation of money back where it belongs, with the people.

I would love to know the take on this from our friends across the pond. I am sure the US Pruners are all to aware of this situation, but would love to know what they believe is the average understanding of the Federal Reserve of the average American.

I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is now controlled by a system of credit. We are 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.

Woodrow Wilson 1919

The financial system has been turned over to the Federal Reserve Board. That Board administers the finance system by authority of a purely profiteering group. The system is private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other peoples money

Charles A Lindbergh Sr

It is well that the 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.

Henry Ford

If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them, will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered.

Thomas Jefferson

Youtube/Google is your friend! Spend 30 minutes, its very enlightening.

Here is a couple to get you started

The Federal Reserve - A Private Corporation (http://www.youtube.com/watch?v=eWYNXXHeWM8&feature=related)

Secret Bank (http://www.youtube.com/watch?v=kBg22A_y0Lk&feature=related)

25th Sep 2008, 15:54
Better than having the Confederacy print their own money....but yes, I knew that :8

25th Sep 2008, 15:56
I wonder how long the thread will last

Not long, I hope.

Roger Sofarover
25th Sep 2008, 15:59

at least we are on the right thread now. Do your own homework, no need for conspiracy theories, it's all fact. Watch the first link above and follow that. Maybe it's a bit more up market for you! As i said Head. Bucket, Sand. Can you provide one iota of evidence to counter the fact that the Federal reserve is a private bank?

25th Sep 2008, 16:19
No, and neither do I want to.

Can you provide one iota of evidence that that is a worse result than the alternative?

Roger Sofarover
25th Sep 2008, 16:25

The Oz shiraz must have been good tonight. What a very uneducated post.
There is lots of evidence to show the damage. There is no evidence to show what an alternative would have done as there has been no alternative in the last century in the US. However the results of the current system will be seen soon enough.

25th Sep 2008, 16:39
Roger, there must always be a central bank for a mature economy. It's not clear from your post what the precise problem is with the ownership structure of the Fed. It's certainly not true to say that the "Fed is accountable to no one" - it is accountable to the President of the United States and, thereby, to the American people. There is very little about the Fed that is "secret" in the way you imply.

I'm sorry, I don't think I know any average Americans, so can't help on your final question!

Roger Sofarover
25th Sep 2008, 16:52

I agree with your comments concerning a 'central bank'. Sorry i was not implying anything was 'secret', i think that is just the title of one of the Links i put in out of the thousands that are out there on the subject.

Shouldn't a country's central bank be owned by the country/government? Should a central bank to a nation have private shareholders that profit from money released to the government, when neither they nor the government had the money in the first place, the central bank just print it.?

The Federal Reserve is not subject to audit, and as for being accountable to the President mmmmm! I don't think so (really!).

25th Sep 2008, 16:55
Ahh Roger, how lovely to play with a novice!

What a very uneducated post.

A stunning opening, and if it makes it any easier for you I will confess I am a bear of very little brain.

There is lots of evidence to show the damage.

I have really come up against a superior intellect here, haven't I? Is the evidence self-explanatory or would you like to offer even one sentence of it?

There is no evidence to show what an alternative would have done as there has been no alternative in the last century in the US.

Just let me get this straight, ok? For the last century the Federal Reserve Bank has been a private organisation run by the Zio...sorry, the elders,,, ahh, sorry again.

Oddly enough, you may be surprised at the number of things we agree on in the corrupt management of Wall St capitalism as it affects just about everybody. I just choose not to seek conspiracies behind every event. If the system is built on shaky foundations, the chickens will come home to roost, as they are doing at the moment.

As usual, there are opportunities for the contrarian to make the most of this. While you are railing against people who disagree with you, this uneducated soul is taking what he believes is the correct decision to ensure that when all the dust dies down he will still be solvent. I hope all your bluster doesn't deflect you from the proper process.

Roger Sofarover
25th Sep 2008, 17:00

Ahh Roger, how lovely to play with a novice!

Why Novice Bino's?

Just let me get this straight, ok? For the last century the Federal Reserve Bank has been a private organisation

and i never added anything about Zio... or .Elders!

25th Sep 2008, 17:30
Very interesting debate. :zzz:

Is it OK to ask for normal links to say, documents that either accredit or discredit one or other arguments, instead of having to watch youtube...?! I've yet to see any evidence that the Fereral Reserve is a private corporation, like IKEA. In the good ole days, people posted links. These days anyone can say anything and nobody minds...?!

25th Sep 2008, 17:57

You seem to confuse the arm's length nature of the Fed's charter with being a private entity.

By design, the Fed was created to be the central bank, but to be as well inured from undue political influence. Therefore, a political party, even if it controls all three branches of government, cannot order the Fed to comply with its whims of the day.

Every six months, the Fed reports to congress on its operations and the state of the economy under Humphrey Hawkins statute requirements, and has numerous reporting tasks required of it by statute. The governors of the Fed are appointed and confirmed by the president and senate independently of the political cycle and are not subject to hiring and firing by the politcal leadership of the day. Here is a summary of the process:

FRB: FAQs: Board of Governors (http://www.federalreserve.gov/generalinfo/faq/faqbog.htm)

To imply the Fed is a private group of fat cats having their way with us taxpayers is beyond the pale. The Fed is the American central bank, with roots back to Alexander Hamilton, though its rules and structure have been modified over the last 220 odd years. Here is a good summary of the Fed's genesis:

The Founding of the Fed - Federal Reserve Bank of New York (http://www.newyorkfed.org/aboutthefed/history_article.html)

In the current financial upheaval, the Fed is not correctly seen as the major culprit. While its remit is to manage inflation while enabling economic growth, and in this role may have made some over-accommodating monetary judgments post 9/11, I don't think it is the primary source of our current problems, but rather has done a magnificent job over the decades providing sound central banking for the most part, making the fabled American dream a reality for most of us.

I don't know if you're getting your inspiration from Ron Paul, the 'troofers', some manic gold bug, or where, but I think you have gone overboard in trying to proselytize your version of the 'gospel'.

Roger Sofarover
25th Sep 2008, 18:27
Thanks Ben.:ok: Not meaning to go overboard, just quoting what i have read, thats why i asked for the opinions of you chaps stateside.

25th Sep 2008, 18:28
Fair enough, Roger.

I truly appreciate an open mind.:ok::D